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The March 2026 marketplace fee reset: what actually changed

Published 16 July 2026 Rates verified 16 Jul 2026 8 min read

In March 2026, Amazon, Flipkart and Meesho all moved to zero commission on products under ₹1,000. It is the biggest change to Indian marketplace economics in years — and most of the guides you'll find still quote the old numbers.

If you learned marketplace economics before this year, the rule of thumb was simple: Amazon takes about 15–18%, Flipkart about the same, Meesho a bit less. Price your product accordingly and you'd be roughly right.

That rule of thumb is now wrong, and not by a little. For a large share of Indian sellers, marketplace commission is now zero. If you're still pricing with an 18% commission baked in, you're leaving margin on the table — or worse, you've concluded a product isn't viable when it actually is.

What changed

MarketplaceOld rule of thumbReality since March 2026
Amazon India~15–18%0% at ≤ ₹1,000 · 2–38% above
Flipkart~15–17%0% at ≤ ₹1,000 · ~3–22% above
Meesho~14%0% — all categories, all prices

Amazon: 12.5 crore products, 1,800+ categories

Amazon India eliminated referral fees on products priced at or below ₹1,000, effective 16 March 2026, across more than 1,800 categories — around 12.5 crore products. The categories include apparel, footwear, fashion jewellery, grocery, home décor, beauty, toys, kitchen, automotive and pet products.

Amazon was explicit that this is not a temporary promotion. In its own announcement: "This change is not promotional. It is structural." The company said sellers could save up to 70% in total selling fees.

What this means in rupees A ₹499 kurta that previously carried a ~₹90 referral fee now carries ₹0. On 500 orders a month, that's roughly ₹45,000 that stays in your business.

Closing fees fell too

The referral fee change got the headlines, but Amazon also cut closing fees in the same update:

Item priceClosing fee beforeAfter March 2026
Under ₹300₹45₹20
₹300–₹500₹35₹26

Easy Ship fees were also reduced by more than 20% for products under ₹300, and shipping multiple units in a single box can save up to 90% on selling fees from the second unit onward.

Flipkart matched it

Flipkart moved products under ₹1,000 to 0% commission in March 2026 as well, and cut return fees by around ₹35 in several categories. Above ₹1,000, most categories fall between roughly 3% and 22%.

There's an important catch with Flipkart, though, which we cover in the Flipkart guide: your exact commission depends on your seller tier, and there is no public rate card. The only authoritative source is your own Seller Hub.

Meesho was already at zero

Meesho charges 0% commission across every category at every price point — and no payment gateway fee and no COD fee either. That's not a promotion; it's the business model. Meesho earns from logistics margin, advertising and financial services instead.

This makes Meesho structurally different, not just cheaper. We explain what it actually costs in Meesho's 0% commission: what it really costs you.

So what actually costs you now?

This is the part most sellers haven't adjusted to. When commission was 15–18%, it dwarfed everything else, so it was reasonable to ignore the rest. With commission at zero on a sub-₹1,000 product, the costs that were always there are suddenly the whole story:

  • Shipping. Frequently the single largest fee you now pay. It's charged by weight slab and delivery zone, so a 200g product shipped locally and a 600g product shipped nationally are completely different businesses.
  • Returns and RTO. A returned order isn't a missed sale — it's a loss. You pay forward shipping, reverse shipping and packaging, and get the product back.
  • Closing and fixed fees. Small per order, but they don't scale down with your price. On a ₹300 product, a ₹20 closing fee is 6.7% of revenue.
  • Advertising. Now that commission isn't taking a cut, ad spend is often the biggest controllable line in your P&L.
The counterintuitive result Cheap, light, locally-delivered products became dramatically more viable in March 2026. Heavy, low-priced products shipped nationally are often still loss-making — because ₹62 of shipping on a ₹500 item doesn't care that commission is now zero.

Why most guides you'll read are wrong

When we researched this, we checked the pages that rank for these terms. The results were not encouraging.

One widely-linked "2026 Flipkart commission guide" lists rates of 2–25% by category and makes no mention of the 0%-under-₹1,000 change at all — the single biggest Flipkart fee event of the year. It cites no official source and carries no verification date.

Another "2026 Myntra guide" claims Myntra's 4–5% commission compares well against "25–40% on competing platforms" — a comparison against rates that stopped existing in March 2026.

This isn't unusual. Marketplace fee content is written once, ranks, and is rarely revisited. The rates drift, the page doesn't, and sellers price real products against stale numbers.

How to check anything you read Ask three questions: does it link to the marketplace's own fee page? Does it say when the rates were last checked? Does it acknowledge that rates vary by category, price band and — on Flipkart — seller tier? If the answer to any is no, verify before you price anything.

Rates drift — even good data goes stale

This isn't a one-off problem you can solve by reading one good article. Marketplace fees change constantly. While we were building this calculator, we found two Amazon categories with changes that had already taken effect on 10 June 2026:

Category (above ₹1,000)Until 9 Jun 2026From 10 Jun 2026
Automotive — Tyres & Rims3.0%7.0%
Fans & Robotic Vacuums (₹1,000–5,000)4.5%7.0%

A tyre seller who priced on the old 3% and didn't notice lost more than double the fee overnight. That's why every rate in our calculator carries a source link and the date it was last checked — and why you should confirm against your own seller panel before pricing a product, no matter who told you the number.

What to do now

  1. Re-check any product priced near ₹1,000. The threshold is a cliff, not a slope. On Amazon, a men's T-shirt at ₹1,000 pays ₹0 referral; at ₹1,001 it pays 23% — about ₹230. One rupee of extra price can cost you ₹230.
  2. Re-run products you previously wrote off. Sub-₹1,000 items that looked unviable at 18% commission may be profitable now.
  3. Look hard at weight and zone. With commission gone, these move your profit more than anything else you control.
  4. Get your real Flipkart rate from Seller Hub → Reports → My Commission Structure. Nobody can tell you this number but Flipkart.
The ₹1,000 cliff, concretely Amazon, Apparel — Men's T-shirts:
Sell at ₹1,000 → referral fee ₹0
Sell at ₹1,001 → referral fee ₹230.23
If your price is drifting just above ₹1,000, that single rupee is the most expensive one in your business.

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Sources