2 November 2026
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6 min read
2026 has been the year of “zero commission” in Indian e-commerce. Amazon and Flipkart both dropped commission on low-priced products, and Meesho has marketed itself on zero commission for years. But fees haven't disappeared. They've moved into closing fees, shipping, cancellation charges and penalties. If you're still pricing with last year's spreadsheet, your margins are wrong in both directions.
Closing fees, shipping or weight-handling fees, and 18% GST on those fees all still apply, so a sale is never fee-free.
In our July breakdown of Amazon.in fees we worked through a ₹699 product with a ₹250 landed cost in a 12% referral category, and got a 31% net margin. Here's the same product if it qualifies for the zero referral fee, keeping the same illustrative figures and adding the new closing-fee increase:
Total deductions are about ₹137, against ₹232 before. Payout rises to about ₹562, and profit after the ₹250 cost is about ₹312, a 45% net margin instead of 31%. Your category's actual closing and shipping fees will differ, so run your own numbers in Seller Central's fee calculator.
Now the catch for dropshippers. If your supplier runs out of stock and you cancel that order, the cancellation fee is 10% of ₹699 plus GST, about ₹82. That's a quarter of the profit of a good sale, gone on an order you never shipped. Supplier stock accuracy has become a fee line.
Flipkart also moved products under ₹1,000 to zero commission in March 2026, according to seller-education sites. Check your category in Seller Hub, because the published coverage is less clear than Amazon's. More recently it was reported to have introduced dispatch and cancellation penalties: ₹30 per shipment handed to the logistics partner after the dispatch-by date, ₹60 for cancelling an order after receiving it, and ₹90 when both happen. New sellers in their first three months are reportedly exempt.
Meesho still charges no commission, and its costs sit in logistics and returns. Recent seller guides note that sellers must use Meesho-approved logistics partners and that return shipping falls on the seller. On a platform with heavy COD and price-sensitive buyers, returns are the fee that matters. Our RTO guide covers how to price for them.
Fee schedules change often and vary by category, fulfilment channel and price band. Treat this as a map, and confirm the exact numbers in Amazon Seller Central, Flipkart Seller Hub and the Meesho supplier panel before you reprice.