What does the Myntra zero-commission model mean for D2C brands?

MediaNama’s Take

The zero-commission model on Myntra is best understood as a seller-acquisition strategy rather than a structural shift in marketplace economics. By waiving commissions at the entry stage, platforms are competing to onboard early-stage direct-to-consumer (D2C) brands, particularly those operating at lower price points that cannot sustain the standard 25–30% fees.

What remains unclear is how long zero commission lasts and what costs apply once brands scale. That uncertainty matters because zero commission does not remove platform dependence. Instead, monetisation often shifts downstream, with sellers becoming customers of the platform through spending on visibility, advertising, logistics, and fulfilment.

As marketplaces race to acquire sellers early, they increasingly shape how brands price, discount, and reach customers, while embedding them into platform-controlled discovery and demand systems. The real question, therefore, is not whether zero commission helps brands onboard, but what happens once scale sets in and early incentives give way to recurring, platform-led costs.

What’s the News

Myntra has introduced a zero-commission model for early-stage Indian D2C brands joining its marketplace under the Myntra Rising Stars programme, according to a report by the Business Standard. The model applies to new fashion, beauty, and lifestyle brands that currently sell primarily through their own websites or social media channels.

According to the company, the initiative follows a pilot run during the 2025 festive season and aims to onboard new brands on the platform. However, Myntra has not disclosed how long the zero-commission period will last or what cost structures will apply once brands scale.

How long does a zero commission model usually last?

For context, industry analysts say zero- or low-commission onboarding programmes are not new in Indian e-commerce. Large marketplaces have historically used reduced commissions or performance-linked fee structures to attract new sellers during their early days.

“Such programmes are usually tied to scale or performance. Once brands reach a certain level, they typically move to the normal commission structure,” said Satish Meena, Founder, Datum Intelligence.

Additionally, Meena noted that platforms such as Amazon have used similar approaches in the past, while Flipkart has more recently introduced zero commission for certain low-priced products. In Flipkart’s case, the benefit applies only within specific price bands.

Notably, what stands out in Myntra’s announcement is the absence of clarity on how long the zero-commission window lasts or what conditions trigger a shift to regular fees. For early-stage D2C brands making long-term decisions about scaling on marketplaces, that lack of clarity carries real consequences.

Why are platforms now competing to acquire sellers?

Myntra’s move also reflects a broader shift in how e-commerce platforms compete. Earlier, platforms focused primarily on acquiring consumers. Today, however, they are competing just as aggressively to acquire sellers.

According to Meena, zero commission functions primarily as a seller-acquisition strategy. “In the long run, this is targeted towards customers, but first you need to bring sellers and merchants on the platform,” he said.

Moreover, high commissions make it difficult for brands operating at lower price points to list products at all. “If you charge 25% or 30% commission, many low-priced products simply cannot be sold,” Meena said. Therefore, reducing commissions gives such brands an incentive to experiment with listing on platforms like Myntra.

This dynamic is particularly relevant in fashion, where customers constantly seek new brands, wider selection, and lower price points. Furthermore Meena added that, as a category-focused fashion platform, Myntra is using this demand as leverage to attract brands that might otherwise prioritise Amazon as their first marketplace – due to its operational simplicity.

When sellers also become customers

Notably, the zero-commission push also intersects with a larger trend among e-commerce platforms, where sellers increasingly become customers of the platform itself.

Many D2C brands today start as social media- or creator-led businesses. At the same time, platforms are building internal creator ecosystems to reduce reliance on expensive external influencers. In this context, Meena highlighted Myntra’s shopper-led content programmes, where users create content around products and earn a share of the revenue from resulting sales.

“They have built a large ecosystem where shoppers create content and get a percentage of revenue,” he said. Furthermore, he noted that influencer-led marketing becomes expensive over time and delivers diminishing returns.

As brands plug into these ecosystems to gain visibility, they also begin paying for platform services such as advertising, logistics, and discovery tools. Consequently, the line between sellers and customers continues to blur, deepening reliance on platform-controlled demand.

Does zero commission actually reduce seller costs?

Even when platforms waive commissions, sellers continue to incur costs in other ways. According to Meena, visibility on large marketplaces still depends heavily on paid tools. “You still have to spend on sponsored ads or sponsored search to be visible to customers,” he said. Also, sellers may bear logistics and fulfilment costs, depending on the platform’s model.

As a result, zero commission lowers upfront barriers but does not eliminate the cost of operating on a marketplace. Instead, costs often shift to visibility, advertising, and fulfilment: all of which remain under platform control.

This is particularly relevant when taking into account Myntra’s recent financial numbers. In FY25, Myntra derived a significant share of its revenue from logistics and advertising services, with logistics contributing about Rs 2,919 crore and advertising revenue rising 28% year-on-year to Rs 914.5 crore.

Advertising alone played a key role in the company’s return to profitability, highlighting that even as commissions are waived at entry, seller-facing services such as visibility and fulfilment remain central to the platform’s business model.

What happens once brands scale?

Meena said it is unlikely that a zero-commission model can work indefinitely for a platform like Myntra. “It is not technically possible for zero commission to work in the long run the way it does for Meesho,” he said, pointing to Myntra’s higher logistics and operational costs.

At best, zero commission may continue only for products within certain low price bands. “You might still see zero commission below a certain price point, because otherwise those products cannot be sold,” he explained.

Therefore, as brands scale, their ability to absorb commissions improves. However, their dependence on platform-led discovery and demand also increases. This creates a structural risk where early incentives give way to higher downstream costs once brands become embedded in the platform ecosystem.

Why platforms are experimenting with this now

Finally, Meena linked the shift toward zero-commission and low-commission models to broader changes in fashion retail economics. While volumes in online fashion are growing, average selling prices are not.

“The volume growth is coming from lower price-point products,” he said. For context, similar trends appear in offline retail like Zudio as well, where value-fashion chains are growing faster than mid-market brands.

To capture this demand, platforms need sellers who can operate sustainably at those price points. Consequently, reducing commissions becomes one of the few viable ways to make that work.

Also Read: