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Flipkart Entered the Zero Commission Era for All Products in the Fashion Category

Flipkart

Flipkart expanded its zero commission policy to cover all fashion products in order to support sellers in the fashion category in India’s e-commerce market. The company removed the price limit in the commission exemption that was previously valid only for fashion products priced at 1,000 rupees and below. With the new application, approximately 90,000 active fashion sellers on the platform are aimed to preserve their full margins.

Price Limit Removed for Flipkart Sellers

Flipkart’s new decision includes all products in the fashion category under zero commission, regardless of price level. In the previous model, the commission exemption was applied only up to the price limit of 1,000 rupees. With this change, sellers will not pay platform commission on fashion sales, regardless of the product price.

According to the company’s statement, this step will support sellers in acting more comfortably in the areas of product variety, brand investment, and innovation while increasing their profitability. The application is expected to create significant space especially for SMEs, local brands, and D2C fashion companies selling directly to consumers.

Competition and Retail Impact in Fashion E-Commerce

Kapil Thirani, Vice President of Flipkart Fashion, described the expansion of the zero commission policy to the entire fashion category as a “seller-first” initiative. Thirani stated that this decision is a long-term investment to enable sellers to make investments in innovation, expanding their product range, and brand building more confidently.

As competition in online fashion retail increases in India, steps by marketplaces to reduce seller costs are also coming to the fore. Flipkart’s commission move aims to enable sellers to list more products on the platform, increase category diversity, and offer consumers a wider fashion selection.

Flipkart Strengthens Its Digital Marketplace Infrastructure

Founded in 2007, Flipkart has more than 500 million registered users and more than 1.4 million sellers. With its new commission model, the company aims to increase seller participation in the fashion category and strengthen its position in the digital retail ecosystem. The removal of commission costs stands out as an important change in terms of seller economics, pricing, product visibility, and data-driven category management on e-commerce platforms. Flipkart’s new model in the fashion category is positioned as a new retail step that supports the growth plans of marketplace sellers.

Flipkart Builds Proprietary E-Commerce LLMs as AI Generates Up to 40% of Its Code

Flipkart Builds Proprietary E-Commerce LLMs as AI Generates Up to 40% of Its Code

Flipkart Builds Proprietary E-Commerce LLMs as AI Generates Up to 40% of Its Code

Walmart-owned Flipkart is deepening its artificial intelligence strategy by developing specialised e-commerce large language models (LLMs), with AI now generating nearly 40% of the company’s software code. The move highlights the growing role of AI as a core operating layer in modern commerce platforms.

India’s e-commerce giant has deployed more than 250 AI models across its ecosystem, according to Chief Product and Technology Officer Balaji Thiagarajan. The company is integrating AI across customer experiences, seller services, engineering processes, and operational workflows, positioning itself at the forefront of AI-driven retail innovation.

Speaking to Moneycontrol, Thiagarajan revealed that approximately 35–40% of Flipkart’s software code is already being generated by AI-powered tools. The company is also building what it describes as an “agentic e-commerce platform,” combining frontier AI technologies with proprietary models tailored specifically for commerce use cases.

How Flipkart Is Applying AI Across Its E-Commerce Ecosystem

Flipkart believes its long-term competitive advantage will come from specialised e-commerce models trained on its own data and operational expertise rather than relying solely on general-purpose AI systems. The company is using AI to enhance product discovery, conversational shopping experiences, catalogue enrichment, seller tools, customer support, and internal productivity systems.

Among its AI-powered initiatives is Seller Lens, a platform that helps merchants manage and grow their businesses through AI-driven insights. Flipkart is also deploying voice-based AI agents that currently make around 90,000 personalised calls each month to sellers for payment reminders, operational updates, and business recommendations. The company expects these volumes to increase significantly in the future.

To accelerate its AI transformation, Flipkart has strengthened its leadership team by recruiting senior executives from companies including Amazon, Coupang, Tata Digital, Razorpay, Swiggy, and Mastercard. The hires span engineering, product, supply chain, and data science functions, reflecting the company’s ambition to scale AI capabilities across the organisation.

Despite the substantial investments required for generative AI, Flipkart says its current priority is governance rather than immediate financial returns. The company is focusing on areas such as content moderation, response quality, human oversight, and reinforcement learning while measuring success through business metrics including conversion rates, customer engagement, basket sizes, demand forecasting accuracy, and inventory performance.

Flipkart’s AI push comes amid intensifying competition across the global e-commerce sector, where retailers are increasingly adopting artificial intelligence to improve efficiency, personalise shopping experiences, and automate operations. The company’s strategy signals a broader industry shift toward specialised, domain-specific AI systems that can reshape how commerce platforms are built and operated in the years ahead.

Source: Moneycontrol