Ajio's commission model depends on the commercial arrangement in your agreement. Brands usually pay a commission, plus fixed, shipping or other fees, and bear the cost of returns. Net margin is the selling price minus these deductions, taxes handled per your settlement report, and product cost. Get exact rates from your agreement and rate card, and verify each settlement against them.
Why the commercial model comes first
Before looking at percentages, confirm how your brand actually sells on Ajio. Marketplace-style arrangements, where you earn the selling price minus deductions, behave differently from arrangements where the platform buys stock or takes it on consignment. Each has different risk on pricing, discounts, unsold stock and returns.
Your signed agreement and onboarding documents define which model applies to you. Do not rely on what another brand tells you. Terms differ by category, brand and negotiation, and they change over time. Always confirm the latest terms with your Ajio account manager in writing.
The components of a typical fee structure
Fee names vary, but most marketplace deductions fall into the buckets below. Treat the table as a checklist for reading your own documents, not as Ajio's actual rates.
| Component | What it covers | Where to verify |
|---|---|---|
| Commission | Platform share, usually linked to category and price band | Seller agreement, rate card |
| Fixed or closing fee | Per-order or per-unit charge, if applicable | Rate card |
| Shipping or logistics fee | Forward and reverse movement, often weight or slab based | Rate card, settlement report |
| Promotion or discount funding | Your share of platform-run offers | Campaign confirmation, settlement report |
| Taxes and statutory deductions | GST-related items and any tax collected at source | Settlement report, your tax adviser |
| Adjustments and penalties | Return claims, quality or compliance charges | Settlement report, policy documents |
From selling price to net margin
Commission percentage alone does not tell you your margin. A workable formula per order is:
- Start with the customer selling price, after any discount you fund.
- Subtract commission and fixed fees.
- Subtract shipping and other service fees.
- Adjust for taxes as shown in your settlement report. Check current GST and TCS treatment with your tax adviser.
- Subtract product cost, packaging and any marketing cost.
Then average across all orders, including returned ones. A style with a healthy margin on paper can turn thin once return costs are spread across the units that stay sold.
Where margin quietly leaks
- Returns: fees on returned orders may be partly or fully non-refundable, and reverse shipping is often charged. Fashion return rates can be high, so this matters more than a one-point change in commission.
- Wrong category or price band: a product mapped to the wrong slab can attract a higher fee than agreed.
- Weight or size slab errors: shipping fees depend on the captured dimensions or weight, so a wrong entry creates repeated overcharges.
- Discount funding: you may bear a share of platform offers, which reduces the price your commission is calculated on or your payout, depending on terms.
- Unreconciled deductions: small penalties and adjustments appear as lump sums and are rarely questioned.
How to audit Ajio fees against your terms
- Build a rate sheet from your agreement and latest rate card: commission by category, fixed fees, shipping slabs and return rules.
- Download settlement and order reports for the same period.
- Match each order to its settlement line, and check that the fee charged equals the fee agreed.
- Flag returns where fees or shipping were deducted differently from your terms.
- Raise disputes with order IDs, evidence and the clause you are relying on, and track them to closure.
Doing this in spreadsheets works at low volume but gets heavy fast. MarketplaceMetrics by Fundle is built to reconcile sales and settlements, check fees against agreed terms and track returns and recovery cases. Myntra Excel reports are reviewed today, and Ajio coverage is a scope discussion, so ask Fundle what is currently supported.
Questions to settle before signing or renewing
- Which fees apply to returned, cancelled and RTO orders?
- How are commission and shipping slabs determined, and who can change them?
- What share of platform promotions do we fund, and how is it shown in settlements?
- What is the settlement cycle, and how are holds or adjustments explained?
- What is the dispute window for incorrect deductions?
Worked example
Illustrative example only. These figures are assumed for explanation and are not Ajio's rates or any brand's results.
- Selling price: ₹1,500
- Commission (assumed): ₹270
- Fixed fee (assumed): ₹30
- Shipping fee (assumed): ₹90
- Total deductions: ₹390, so settlement before tax adjustments is ₹1,110
- Product cost: ₹650
- Contribution per kept order: ₹460, or about 30.7% of selling price
Now assume a returned order costs you ₹180 (forward plus reverse shipping, with commission reversed). Out of 100 orders, 75 are kept and 25 are returned: 75 × ₹460 = ₹34,500, less 25 × ₹180 = ₹4,500, gives ₹30,000. That is ₹300 per order, or 20% of selling price, well below the 30.7% a kept order suggests.
Questions and answers
What is the Ajio commission rate for brands?
There is no single rate to quote. Commission depends on your commercial arrangement, category and price band. Check your seller agreement and the latest rate card, and confirm any recent changes with your Ajio account manager in writing.
How do I calculate my net margin on Ajio?
Take the selling price, subtract commission, fixed fees, shipping and any promotion funding, adjust for taxes as shown in the settlement report, then subtract product cost. Finally, average across all orders including returns to get a realistic figure.
Why does my Ajio settlement not match my expected payout?
Common causes are fee slab differences, return deductions, promotion funding, tax adjustments and timing. Match each order to its settlement line, compare fees with your agreed rate card, and raise a dispute with order IDs for any mismatch.
Can I recover wrong fees charged by Ajio?
Often yes, if you raise the claim within the dispute window in your agreement and attach evidence such as order IDs, the rate clause and settlement lines. Track each case until it is resolved, and confirm timelines with Ajio.