Amazon and Flipkart cut seller fees to win smaller-city commerce
Amazon has reduced fees twice since last year on products under Rs 1,000, while Flipkart has eliminated fashion commissions, as both platforms target merchants and value-led demand in tier-2 and tier-3 India.
Amazon and Flipkart are lowering seller commissions, including zero fashion fees at Flipkart, to attract merchants and affordable-product buyers in smaller Indian cities. The platforms are prioritising tier-2 and tier-3 expansion despite likely near-term profitability pressure.
Why this matters
The fee moves extend Amazon's India push after it urged marketplaces to share fraud data while expanding anti-counterfeit operations, and follow the policy opening consumer e-commerce to foreign investment.
Retail-company signals are accelerating, up +219000% QoQ.