Indian e-commerce platform Flipkart introduced a new pricing strategy, eliminating commissions for all merchandise priced under Rs.1,000. This strategic initiative is designed to stimulate consumer purchasing and position the company more competitively against emerging value-focused retail competitors like Meesho, which currently employs a commission-free business model.

The organization has additionally applied its zero fee structure to its affordably-oriented digital marketplace, Shopsy, which covers merchandise at various price levels.

Shopsy is in direct competition with platforms like Meesho and Amazon Bazaar, typically offering products priced between 150-250 rupees.

More than 70 percent of its customer base originates from tier 2 and smaller urban centers, with fashion, home accessories, and general product categories being the most popular.

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In addition to eliminating transaction fees, Flipkart has further decreased return charges by 35 rupees across different product categories. According to Thirani, standard return fees usually range between 160 and 175 rupees. Historically, returns have represented a significant challenge for sellers, and the company anticipates that this fee reduction will provide substantial support and alleviation for sellers.

The updated commission structure, along with reduced return charges, is designed to decrease operational expenses by approximately 30 percent for merchants selling items priced under 1,000 rupees.

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Thirani anticipates that this strategy will attract additional vendors to the platform and motivate current sellers to expand their product offerings beyond existing price ranges. Currently, numerous small-scale sellers refrain from listing premium or bulk products because of the elevated transaction costs.

This strategic initiative to integrate smaller merchants is happening simultaneously with online retail platforms introducing new product categories for affordable goods while simultaneously targeting less urbanized regional markets.

Amazon's Indian division has introduced Bazaar, a specialized segment dedicated to products priced under Rs.599, spanning diverse categories including household items, decorative products, functional goods, clothing, and additional merchandise. Within this particular product category, Amazon India is offering sellers the opportunity to list their products without imposing any referral commission charges.

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In the aftermath of the festive season, Amazon India has implemented modifications to the seller fees on its e-commerce platform. On November 3rd, Economic Times reported that the company raised its warehouse storage charges, increasing the rate from 45 to 50 rupees per cubic foot on a monthly basis.

Moreover, Amazon's Indian division lowered the return processing charges for clothing and footwear sellers, which are product categories known for experiencing frequent customer returns.