Flipkart drops commission on all fashion products
What's the story
In a major move, Flipkart has scrapped commissions on all fashion products, irrespective of their price. The decision comes as part of the Walmart-owned e-commerce giant's efforts to help sellers retain more of their earnings and grow their businesses. The revised policy will benefit around 90,000 transacting fashion sellers including MSMEs, D2C brands, and homegrown labels.
Policy impact
Sellers can reinvest in inventory, product expansion
The new policy is expected to allow sellers to keep more margins, which they can reinvest in inventory, product expansion, and brand building. Previously, the zero-commission model was only applicable on fashion products priced under ₹1,000. Now, Flipkart has extended this benefit across all price points including premium fashion products.
Tech integration
AI-powered tools for trend analytics and catalog management
Along with the policy change, Flipkart is also offering its sellers access to AI-powered demand insights, trend analytics, and catalog management tools through its seller dashboard. This will help them respond more quickly to changing consumer preferences and broaden their product offerings. Kapil Thirani, Vice President of Flipkart Fashion, said this move is a long-term investment in their sellers enabling them to invest confidently in innovation and brand building.
Market strategy
Policy expected to boost opportunities for MSMEs, D2C brands
The decision comes as e-commerce marketplaces are trying hard to attract sellers. Earlier this year, Amazon had expanded its zero-referral-fee program to products priced below ₹1,000 across categories. However, Flipkart's latest announcement goes a step further by waiving commission on all fashion products irrespective of price. The policy is expected to boost opportunities for MSMEs, emerging designers and D2C brands as India's online fashion market continues to grow.