Flipkart’s Zero Commission Plan

Flipkart charges a market place fee — a percentage of the selling price of a product inclusive of a selling commission, a closing fee and shipping charges. The selling commission can be as low as 4 per cent to as much as 25 per cent, depending on the product. Flipkart proposes to do away with the commission it charges its merchants so as to enlist more of them. The company aims at having 1 lac merchants by the end of 2015, up from 30,000 now. It will instead urge sellers to advertise on the platform. It will make Flipkart more sustainable in the long run. Snapdeal owned Shopo too has become a zero commission platfor. It is mobile-only market place.

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