Flipkart and Amazon waive seller fees to accelerate smaller-city growth

India’s leading marketplaces are cutting commissions on low-priced products to attract local sellers and shoppers beyond metros. Flipkart has removed fashion commissions, while Amazon says tier-2 and tier-3 cities accounted for over 70% of new Prime sign-ups this year.

— Filed Fri, 31 Jul, 2026, 05:32 IST · Source Times of India · Business · Updated

Flipkart and Amazon are waiving seller commissions on low-priced products to win consumers and onboard local sellers in smaller Indian cities. Flipkart eliminated fashion commissions, while Amazon said over 70% of new Prime sign-ups this year came from tier-2 and tier-3 markets.

Why this matters

The fee cuts extend Flipkart’s recent expansion push, following its late quick-commerce entry and Pay Later rollout across Flipkart, Myntra and Minutes.

Retail-company signals are accelerating, up +254940% QoQ.