India's e-commerce landscape is undergoing a significant strategic pivot, with major platforms like Myntra, Flipkart, and Amazon India choosing to forgo seller commissions on low-priced goods. This move marks a clear shift in priority from immediate monetization to aggressive market share acquisition, particularly in smaller cities and among emerging direct-to-consumer (D2C) brands.
The Zero-Commission Wave Sweeps Indian E-commerce
On 9 January 2026, fashion and lifestyle giant Myntra officially announced the rollout of a zero-commission model. This initiative, part of its Myntra Rising Stars program, aims to attract young D2C brands and regional sellers who were previously deterred by platform fees. Myntra is not the first mover in this space. It follows the path charted by Meesho, which has operated a permanent no-commission model since 2015, and Flipkart, which introduced a similar structure for products under ₹1,000 in November 2025.
The domino effect has now reached Amazon India as well. The collective strategy involves waiving off the traditional commission fee on low-ticket items while retaining charges for other services like shipping, marketing, and account management. It's crucial to note that commissions on higher-value products remain intact for these platforms.
Drivers Behind the Strategic Shift
This fundamental change in monetization strategy is driven by several key factors. Analysts point to the immense success of Meesho's model in penetrating India's tier-2, tier-3, and smaller cities. By eliminating seller commissions, platforms lower the entry barrier, enabling a flood of regional and unbranded sellers to come online.
Satish Meena, an analyst at Datum Intelligence, explains that this model works exceptionally well in categories like fashion and accessories, which naturally command higher gross margins—typically between 15-30%. "Fashion is driven highly by variety in assortment, brands, sizing, and trend cycles," Meena said. By removing commission barriers, Myntra and others can onboard thousands of emerging brands that previously operated only offline or on social media due to cost concerns.
The demographic shift is undeniable. A 2025 report by Bain & Co and Flipkart highlighted that user adoption is rapidly spreading, with three in five new shoppers since 2020 hailing from tier-3 cities or smaller. Capturing this next wave of consumers requires a vast and varied assortment, which these zero-commission models aim to provide.
Implications for the Market and Future Battles
For Myntra, this is a targeted play to strengthen its position in the high-margin fashion segment. According to Datum Intelligence estimates, Flipkart led the lifestyle category in 2024 with a 22.4% market share, followed by Myntra at 17.5%, and Amazon India and Meesho at nearly 14% each. The zero-commission model could help Myntra close this gap by deepening its reach in towns that prefer regional brands.
Financially, platforms are betting on alternative revenue streams to compensate for the lost commission. Advertising continues to be the largest revenue source for the industry. As marketplaces become more crowded with zero-fee sellers, these brands will likely compete more fiercely for premium ad slots to gain visibility, potentially boosting ad revenue for the platforms.
Myntra's pilot in the last four months of 2025 already saw over 200 brands join the platform, indicating strong initial seller interest. However, experts like Meena caution that a single policy shift won't immediately redraw the market map. "Seller policies change constantly, and a single shift will not change the game for any platform," he noted. The ultimate battle for dominance will still be decided by customer-centric features like faster deliveries, reliable service, and attractive discounting practices.
While consumers may not see a direct price impact immediately, the long-term ecosystem could evolve. Commission structures influence how sellers invest in and prioritize different marketplaces, which eventually shapes product quality, pricing, and return policies across platforms. The race for India's e-commerce future is now firmly focused on volume and variety, with profitability taking a strategic backseat for the time being.
