Flipkart, Amazon mount fee war as race heats up

Amazon and Flipkart are reducing or removing seller commissions on products priced under ₹1,000 to attract more businesses.

Flipkart eliminated commissions entirely for the fashion category in early July 2026.

Lower seller fees aim to boost sales volumes in smaller Indian cities and towns, where price-sensitive buyers dominate.

More than 70% of new Amazon Prime sign-ups in 2026 came from tier two and three cities, highlighting non-metro growth.

Flipkart is onboarding sellers from towns like Azamgarh, Saharanpur, and Bhilwara to expand its selection in smaller cities.