Flipkart seller fees, explained simply
Commission, fixed fee, collection fee, shipping and reverse shipping. How Flipkart works out what to deduct from each order, and how to read your settlement.
Flipkart shows sellers a clean “settlement amount” for every order. Behind that number sit four or five separate fees, and knowing what each one is makes it far easier to price well and catch mistakes.
We have not listed exact rates here. Flipkart sets them by category, price band, weight and the seller’s tier, and changes them several times a year. Use this guide to understand the structure, then check your exact numbers in the Rate Card inside Seller Hub.
The fees on a normal order
1. Commission fee
A percentage of the selling price. It depends on your category and sub-category, and in many categories on the price band. Some low-priced items carry low or zero commission, while premium items in the same category may pay more.
This is the fee to check first when you change your price. Crossing a price threshold can move you into a different commission band.
2. Fixed fee
A flat amount per order, usually tiered by the order value. It covers Flipkart’s platform costs and applies regardless of category.
3. Collection fee
A fee for collecting payment from the customer, whether prepaid or cash on delivery. In some periods and categories Flipkart has reduced or waived it. Check whether it applies to you in your current rate card.
4. Shipping fee
What Flipkart charges to deliver your order. It depends on two things:
- Weight: the higher of actual weight and volumetric weight (length × breadth × height ÷ a fixed divisor). Oversized packaging costs real money here.
- Distance zone: local (within your city), zonal (within your region) or national.
A product shipped nationally can pay more than twice the shipping fee of the same product delivered locally. If most of your orders go national, consider stocking a second warehouse or using Flipkart’s fulfilment to get closer to buyers.
Fees when things go wrong
Reverse shipping fee
When a customer returns an order, Flipkart charges a fee to bring it back to you. It is also based on weight and zone. In most cases you don’t get the forward shipping fee back either, so a return costs you shipping twice.
RTO (return to origin)
When an order is never delivered, because the customer refused it, wasn’t home, or the address was wrong, it comes back as RTO. Depending on the reason and your category, you may be charged shipping for the trip out and back. Cash on delivery orders have the highest RTO rates.
GST on fees
Every fee above attracts 18% GST. Flipkart issues a monthly tax invoice to you for these fees. If you are GST registered, claim them as input tax credit and they cost you nothing in the end.
TCS and TDS
Like every marketplace, Flipkart deducts:
- TCS under GST, 0.5% of net taxable sales at the time of writing, which you claim back through your GST returns.
- TDS under Section 194-O, 0.1% at the time of writing, which shows in your Form 26AS and reduces your income tax.
Neither is a cost. Both are taxes paid on your behalf that you get credit for.
How to read a Flipkart settlement
For each order in the Payments section of Seller Hub, you will see a breakdown. Read it in this order:
- Sale amount: what the customer paid.
- Marketplace fees: commission + fixed fee + collection fee + shipping.
- Taxes: GST on fees, TCS and TDS.
- Settlement: what lands in your bank.
If a settlement looks low, check these three things first:
- Weight discrepancy. Flipkart’s measured weight is higher than what you declared, so shipping is charged at a higher slab. Measure your packed product carefully and raise a dispute with photos if it is wrong.
- Wrong category. A listing in the wrong sub-category may carry a higher commission.
- A return or RTO charge from an older order, deducted in this cycle.
Flipkart vs Amazon: the structure, not the rates
Both marketplaces charge a percentage commission, a flat per-order fee and shipping by weight and distance. The names differ (Amazon calls them referral fee, closing fee and weight handling fee) and the rates differ by category. For a single product, the cheaper marketplace depends on its category, price and weight.
The only way to know is to run the same product through both fee structures. Put each marketplace’s rates into the profit calculator and compare what you keep, not what you sell.