Flipkart's BIG Move: Zero Commission on Products Under ₹1000! Sellers & Shoppers Will Love This!

Author

Abhay Singh | Whalesbook News Team

Detailed Coverage:

Homegrown e-commerce giant Flipkart has introduced a significant change by eliminating commission fees for all products sold on its platform that are priced under ₹1,000. This strategic move is intended to stimulate consumption and intensify competition against emerging value retail platforms such as Meesho, which already operates on a similar zero commission structure.

Kapil Thirani, vice-president of Shopsy and Flipkart Marketplace, stated that this is the first time the zero commission model is being applied to such a broad selection of products under ₹1,000, which represent a substantial portion of their overall offerings. The company has also extended this zero commission benefit to its hyper-value platform, Shopsy, regardless of the product's price.

In addition to the commission change, Flipkart has reduced return fees across its verticals by ₹35. Returns are a significant concern for sellers, and this reduction is expected to provide considerable relief, thereby lowering the overall cost of doing business for sellers on products under ₹1,000 by up to 30%.

Flipkart anticipates that these measures will attract more sellers to its platform and encourage existing sellers to list higher-priced items. The company believes that efficiency gains, partly driven by AI-powered technology, will mitigate any material impact on its earnings. Flipkart also aims to ensure that sellers pass these cost savings on to consumers.

Impact This news is expected to significantly boost competition within India's e-commerce sector, potentially leading to more competitive pricing for consumers, especially in the budget segment. It also provides a substantial advantage for sellers, lowering their operational costs and encouraging them to expand their offerings. The move could lead to increased sales volume for Flipkart and Shopsy, and pressure competitors to adapt their fee structures. Rating: 8/10

Difficult Terms Explained: Commission fee: A percentage of the selling price that an e-commerce platform charges sellers for listing and facilitating the sale of a product. Return fees: Charges incurred when a customer returns a product, often passed on to the seller by the platform.