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Marketplace Strategy

Selling on Meesho in 2026: Zero Commission, What You Still Pay, and Who It Suits

Pexeta Team · 9 November 2026 · 6 min read

Meesho is the one large Indian marketplace that has never needed a "zero commission" announcement for a price band or category: it says it takes no commission from sellers at all. Now that Flipkart and Amazon have dropped commission on products under ₹1,000, many brands are asking whether Meesho deserves a place in their channel mix. Here's how Meesho earns, what sellers still pay, and how to decide.

How Meesho makes money without commission

According to Meesho's IPO prospectus, as summarised by brokerages in December 2025, its marketplace revenue comes mainly from services sold to sellers: delivery and return logistics, advertising, and business insights. In practice that means three costs replace commission:

  • Shipping: Meesho arranges delivery, largely through its own logistics platform Valmo, which had about 18,000 logistics providers and 1,02,000 delivery agents as of September 2025. The shipping charge is your main per-order cost.
  • Returns: return logistics is one of Meesho's revenue lines, so returned and undelivered orders cost you shipping both ways on top of the lost sale.
  • Ads: sellers pay for placement. On a feed-driven app with very large catalogues, many sellers find they need ads to be seen.

For context on the buyer base: Meesho reported 234.2 million annual transacting users in the twelve months to September 2025, with an average order value of around ₹265. At that order value, the per-order shipping charge and the cost of each return take a much larger share of the sale than they would on a ₹1,000 product, so check them against your own prices before you list.

Selling on Meesho without GST

In July 2023 the GST Council exempted small sellers of goods (turnover below ₹40 lakh, as reported by Business Standard) from GST registration for intra-state sales through e-commerce platforms. Meesho opened its platform to such sellers from 1 October 2023:

  • Sellers register with an Enrolment ID or UIN from the GST portal instead of a GSTIN.
  • Their products are shown only to buyers in their own state, to keep sales intra-state.
  • As Qikink notes, Meesho does not collect TCS on sales by Enrolment ID sellers (Notification 37/2023-Central Tax).

This route suits very small, single-state sellers. A brand that wants to sell across India, or on Amazon and Flipkart too, needs a regular GSTIN. Registered sellers have TCS of 0.5% deducted from payouts as on other marketplaces, and claim it back: see our GST TCS reconciliation guide.

Meesho, Flipkart and Amazon side by side

MeeshoFlipkartAmazon India
CommissionNone, on all salesNone below ₹1,000 and on all fashion; rate card applies aboveNo referral fee below ₹1,000 (from 16 Mar 2026); rate card applies above
Main costs that remainShipping, returns, adsFixed, collection, shipping and return fees, adsClosing, shipping or FBA fees, ads
Selling without GSTINYes, intra-state with an Enrolment IDCheck Flipkart's current rulesCheck Amazon's current rules

Our Flipkart zero commission guide and Amazon seller fees guide cover the details for those two.

Does Meesho suit your brand?

  • Price point. Meesho's average order is around ₹265. If your products sell at ₹1,500 and up, most of your buyers are probably elsewhere.
  • Margin after shipping and returns. Work out profit per order after the shipping charge, your return rate (both directions) and ad spend, not after commission alone. Our RTO guide shows how returns eat margin.
  • Brand positioning. Selling the same product much cheaper on Meesho than on Amazon or your own site can undercut your other channels. Some brands use a separate, value-priced range instead.
  • Operations. Low-value, high-volume orders mean many more packages per rupee of sales. Make sure your dispatch can keep up.
Deciding where to sell? Pexeta works out profit per product across Amazon, Flipkart, Myntra, FirstCry and quick commerce, after every fee, return and ad rupee, so you can see where each product actually earns. Talk to us.

Frequently asked questions

Does Meesho charge commission?+

No. Meesho says it takes zero commission from sellers. It earns from services such as delivery and return logistics, advertising and business insights.

What does a Meesho seller pay?+

Mainly shipping on each order, shipping on returned and undelivered orders, and any ads you choose to run. GST-registered sellers also have 0.5% TCS deducted, which they claim back.

Can I sell on Meesho without GST?+

Yes, if you qualify: since 1 October 2023 Meesho accepts an Enrolment ID or UIN from the GST portal instead of a GSTIN. Your products are then shown only to buyers in your own state.

Is Meesho better than Flipkart or Amazon?+

It depends on your price point and margins. Meesho's average order is around ₹265, so it suits low-priced products. Compare profit per order after shipping, returns and ads on each platform.

Sources

  1. Meesho: Meesho becomes the first e-commerce marketplace to offer zero percent commission to sellers — Zero commission policy
  2. Meesho: Meesho makes platform non-GST inclusive — 3 Oct 2023; Enrolment ID/UIN, intra-state discovery
  3. Business Standard (PTI): Meesho adds nearly 25,000 non-GST sellers in 2 months — 15 Dec 2023; GST Council exemption below ₹40 lakh
  4. Groww: Meesho IPO — Marketplace revenue sources, from the RHP
  5. HDFC Securities: Meesho Ltd IPO Note — 2 Dec 2025; 234.2 mn annual transacting users
  6. Aditya Birla Capital: IPO Note – Meesho Limited — 2 Dec 2025; average order value, Valmo
  7. Entrepreneur India: Meesho IPO to open on December 3, key things to know — Valmo network as of Sep 2025
  8. Qikink: How to sell on Meesho without GST — Notification 37/2023-CT, no TCS for Enrolment ID sellers
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