Amazon and Flipkart cut commissions to target tier 2 shoppers
Business
Amazon and Flipkart are making it cheaper for sellers to do business by cutting their commissions, especially for products under ₹1,000.
This is all about reaching shoppers in India's tier-two and smaller cities, where online shopping is really taking off.
Flipkart even dropped commission fees entirely for fashion sellers, giving a boost to small and local businesses.
Lower fees draw cost conscious buyers
Lower seller fees mean merchants can keep prices down, which helps attract cost-conscious buyers outside big metros.
With cities getting crowded in the e-commerce space, both companies are betting on smaller towns for their next wave of growth: over 70% of Amazon's new Prime members this year came from these areas.