- Flipkart eliminated commission price cap for all fashion items.
- This aims to empower sellers, fostering portfolio expansion.
- The move surpasses competitors’ limited zero-commission offers.
Flipkart on Wednesday expanded its zero-commission policy to cover all fashion products sold on its marketplace, removing the earlier Rs 1,000 price ceiling.
The Walmart-owned e-commerce company said the move will benefit around 90,000 transacting fashion sellers, including micro, small and medium enterprises (MSMEs), homegrown labels and direct-to-consumer (D2C) brands, Business Standard reported.
Under the revised policy, sellers can list fashion products without paying any commission, regardless of the product’s price.
Flipkart Bets On Seller Growth
According to the company, extending zero commission across all price points is aimed at improving seller economics and encouraging merchants to expand their product portfolios on the platform.
“Our role is to create the conditions for them to grow,” Kapil Thirani, Vice-President, Flipkart Fashion, said in a statement.
“By extending this seller-first initiative across the entire fashion category, we are making a long-term investment in our sellers so they can invest more confidently in innovation, assortment expansion and brand building.”
India’s Online Fashion Market Continues To Expand
According to Bain & Company’s How India Shops Online 2026 report, India’s e-retail market reached a gross merchandise value (GMV) of $65–66 billion in 2025, more than doubling over the past five years. The report also estimated that India had around 290 million online shoppers during the year.
Gen Z accounted for 40–45 per cent of the country’s online shoppers, while Tier-II and smaller cities contributed around 65 per cent of incremental shopper growth in 2025.
Flipkart said Gen Z now makes up nearly half of its fashion audience. Bain’s research also found that Gen Z shoppers spend a larger share of their budgets on lifestyle, beauty and electronics than other age groups.
A Strategy To Boost Seller Margins
By removing commission across all price bands, Flipkart is lowering one of the key costs associated with selling on its marketplace.
The company expects the move to allow sellers to retain higher margins and reinvest those savings into expanding product assortments and strengthening their brands.
Competition For Sellers Intensifies
Zero-commission selling is not new in India’s e-commerce market.
Meesho has long positioned zero commission as a core part of its seller proposition across product categories.
Flipkart broadened its own strategy in November 2025 by introducing zero commission for eligible products priced below ₹1,000.
Amazon India followed with a fee overhaul effective March 16 this year, extending zero referral fees from products priced below ₹300 to products priced up to ₹1,000 across more than 1,800 categories. According to the company, the revised structure covers over 125 million products, including apparel, footwear and fashion jewellery.
Flipkart’s latest move goes a step further by removing the price ceiling entirely for fashion products, extending the benefit beyond the value segment to include higher-priced homegrown brands and D2C labels.
Opportunity Beyond Budget Fashion
A February 2026 analysis by Redseer Strategy Consultants found that while growth remains concentrated in lower average selling price (ASP) segments, removing commission on products priced above ₹1,000 could help Flipkart strengthen its assortment across premium and mid-priced categories.
According to Redseer, India’s apparel market, currently valued at more than $70 billion, is expected to reach $130–150 billion by 2030, expanding at an annual rate of 10–12 per cent.
The consultancy also expects branded apparel to account for the majority of consumer spending by then, growing at more than twice the pace of unbranded apparel.
For large marketplaces, capturing this opportunity will depend not only on attracting shoppers but also on convincing brands and sellers to offer a wider range of products.
What Happens To Marketplace Economics?
While the zero-commission policy removes one source of marketplace revenue, selling on the platform will not become entirely free.
Depending on the services they choose, sellers may still incur costs related to logistics, shipping, advertising and product promotion.
Flipkart has not disclosed how much revenue it expects to forgo because of the expanded policy or whether it plans to offset the impact through other revenue streams.
The company’s strategy now hinges on whether lower selling costs attract more products, increase transactions and strengthen overall marketplace engagement.
