On January 9, Myntra unveiled a groundbreaking zero-commission model aimed at attracting emerging direct-to-consumer brands and regional vendors to its platform.
This initiative is a component of the Myntra Rising Stars program, inaugurated in July 2023, which seeks to provide support in onboarding, marketing, and visibility to small brands operating with limited budgets.
In adopting this strategy, Myntra is emulating the pathway charted by publicly listed e-commerce competitor Meesho, which imposes no commission fees across all its seller categories, including fashion, home decor, and accessories.
Similarly, Flipkart implemented a comparable structure in November 2025 for items priced below ₹1,000.
The publication Mint delves into the rationale behind this pivotal strategic shift among e-commerce entities, examines its implications for the industry ecosystem, and anticipates the trajectory of competition for market share.
How did it all begin?
When pioneering players such as Flipkart, Snapdeal, and Amazon India first emerged in the Indian market, their monetization models predominantly revolved around charging both listing fees and commissions to sellers, complemented by alternative revenue streams like advertising.
In 2015, Meesho disrupted this paradigm by instituting a permanent no-commission framework, focusing on unbranded and cost-conscious segments.
This innovation enabled the Bengaluru-based marketplace to secure a formidable stance in India’s smaller towns, facilitating regional sellers in efficiently reaching their target audience while benefiting from lower costs and a diverse product assortment.
Notably, this new structure proved particularly advantageous in categories such as fashion and accessories, which typically yield higher profit margins than others, as highlighted by Satish Meena, an analyst at Datum Intelligence.
As a result, major players like Flipkart, Amazon India, and now Myntra have recalibrated their strategies to eliminate commissions on lower-ticket items while maintaining charges related to shipping, marketing, and various features such as account management.
Nevertheless, commission fees on higher-priced products remain an ongoing practice. While precise figures on revenue distribution are elusive, advertising continues to be the predominant revenue stream for the industry.
What advantages does this confer to Myntra?
For Myntra, the institution of a zero-commission model represents a calculated maneuver to fortify its grip on the lucrative fashion and lifestyle segment.
According to estimates from Datum Intelligence, as of 2024, Flipkart led the lifestyle domain (comprising apparel, accessories, and footwear) with a 22.4% market share, followed closely by Myntra at 17.5%, while Amazon India and Meesho hovered around 14% each.
This initiative may facilitate Myntra’s deeper penetration into smaller urban areas that favor regional and recognizable brands.
“Fashion is heavily influenced by variety in assortment, brand recognition, sizing, and trends, making it a more intricate category than electronics,” noted Datum’s Meena.
“By abolishing commission barriers, Myntra can onboard a multitude of emerging D2C brands that have previously remained offline or solely on social media due to steep entry costs.”
A report from Bain & Co. and Flipkart in 2025 reveals that user adoption is increasingly shifting from tier-2 to tier-3 cities, with three out of five new shoppers since 2020 emerging from those designated as tier-3 or smaller.
Additionally, the fashion sector inherently carries a margin advantage, thereby rendering potential revenue losses negligible. Gross margins within apparel typically range from 15% to 30%, depending on item value and supply chain efficiencies.
“No commissions here will translate to augmented profits for sellers. Myntra stands to lose minimally as well,” emphasized Meena.
This strategic shift also positions Myntra at the vanguard of trend-centric retail, broadening its assortment to engage Gen-Z consumers who are increasingly inclined to experiment with new brands.
Backed by Flipkart, Myntra is also poised to reap significant advertising revenue—as the marketplace becomes saturated with small-scale, zero-commission sellers, these brands will proactively compete for Myntra’s premium advertising slots to maintain visibility, as noted by Meena.
Myntra indicated that it piloted this model over the last four months of 2025, which resulted in an influx of over 200 new brands joining the platform.
Will there be a transformation in e-commerce dynamics?
While immediate changes for consumers may be minimal, platform loyalties could face scrutiny over time.
Commission structures significantly influence seller decisions regarding marketplace prioritization, ultimately shaping product quality, pricing, and return policies across different platforms.
In terms of market share, a seismic shift appears improbable in the immediate future. “Seller policies are in constant flux, and a singular alteration will not redefine the competitive landscape for any platform,” stated Datum’s Meena.
Ultimately, customer-centric attributes, such as rapid delivery and discounting practices, will play pivotal roles in determining market dominance.
Source link: Livemint.com.
