Myntra Adopts Zero-Commission Model as E-commerce Platforms Prioritize Market Share Growth

Myntra announced on January 9 the implementation of a zero-commission model designed to attract young direct-to-consumer brands and regional sellers to its platform. This strategic move forms part of the Myntra Rising Stars programme, launched in July 2023 to provide onboarding, marketing and discovery support to small-scale brands operating with limited budgets.

Industry Shift Towards Commission-Free Models

Myntra's decision follows the pioneering approach of Meesho, which introduced a permanent no-commission model in 2015, focusing on unbranded and value-seeking market segments. Flipkart also adopted a similar structure in November 2025 for products priced below ₹1,000. This represents a significant departure from traditional e-commerce monetization strategies that typically involved charging listing fees and commissions from sellers.

According to Satish Meena, analyst at Datum Intelligence, this structure works particularly well in fashion and accessories categories that generally command higher margins than other product segments. The platforms continue to generate revenue through shipping charges, marketing fees, and advertising, with advertisements remaining the industry's primary revenue source.

Market Share Dynamics in Fashion Segment

The zero-commission strategy positions Myntra to strengthen its presence in the high-margin fashion and lifestyle category. Current market share data from Datum Intelligence reveals the competitive landscape in the lifestyle segment for 2024:

Meena noted that fashion categories are driven by variety in assortment, brands, sizing, and trend cycles, making them more complex than electronics. The removal of commission barriers enables Myntra to onboard thousands of emerging direct-to-consumer brands that previously remained offline or operated solely through social media due to high entry costs.

Strategic Benefits and Revenue Implications

The commission-free model offers several advantages for Myntra's growth strategy. Fashion products typically carry gross margins in the 15-30% range, depending on item value and supply chains, making revenue loss from waived commissions minimal. According to a 2025 Bain & Company and Flipkart report, user adoption is expanding from tier-2 to tier-3 cities, with three in five new shoppers since 2020 originating from tier-3 cities or smaller locations.

Myntra's pilot implementation during the last four months of 2025 resulted in more than 200 brands joining the platform. The strategy also positions the company to capture advertising revenue as the marketplace becomes more crowded with small-scale sellers, who will compete for premium advertising slots to maintain visibility.

Market Impact and Future Outlook

While the zero-commission model creates no direct impact on shoppers, it may influence platform loyalties over time. Commission structures determine how sellers allocate spending and prioritize different marketplaces, ultimately affecting product quality, pricing, and return policies across platforms.

According to Meena, a complete market share shift is unlikely in the near term, as seller policies change frequently and single policy modifications rarely transform the competitive landscape. Customer-centric features such as delivery speed and discounting practices will continue to determine market dominance in India's evolving e-commerce sector.