Start with your own data, not the ask. Pull your seller agreement and rate card, reconcile several months of settlements against agreed terms, and fix any overcharges first. Then build leverage from growth, return rates, category mix and ad spend, ask for a specific change (rate, slab, fee waiver or cap), and get the revised terms in writing from your key account manager. Confirm the latest terms with the marketplace.
What you can realistically negotiate
Commission is rarely the only lever. Marketplace charges usually combine commission with other items such as fixed or closing fees, shipping or logistics fees, return-related charges, and sometimes marketing or discount contributions. Which of these apply to you, and how they are calculated, is written in your seller agreement, rate card and settlement reports. Do not rely on what another brand told you. Terms differ by category, brand and contract date.
Before you ask for a lower commission, decide what you actually want:
- A lower commission rate for a category or price band.
- A waiver or cap on a specific fee.
- Changes to return-related charges.
- Clearer terms on discount or promotion funding.
- Faster resolution of wrong deductions.
A marketplace may say the rate card is standard for a category. There can still be room around the edges, but confirm the current position with your key account manager rather than assuming.
Audit your fees before you ask
If you negotiate without auditing, you may argue about a rate you are not even being charged correctly. Settle the facts first.
- Collect the documents: signed seller agreement, commercial annexures, latest rate card and any email approvals on special terms.
- Pull three to six months of settlement reports along with order and return data.
- Compare charged versus agreed: for each order line, check the commission and fee applied against your terms for that category and date.
- Separate errors from rates: an overcharge against agreed terms is a recovery claim. A rate you dislike is a negotiation topic. Keep them apart.
- Check returns: see which fees were reversed on returns and which were not.
Doing this in spreadsheets is possible but slow at scale. MarketplaceMetrics by Fundle reconciles sales and settlements, checks commissions and fees against agreed terms, and tracks returns and recovery cases. Myntra Excel reports are reviewed today, and other marketplaces, including Nykaa, are in scope discussion.
Build your leverage
Marketplaces respond to commercial reasons. Gather evidence on what you bring to the platform:
- Growth: month-on-month or year-on-year sales on the platform, from your own reports.
- Return behaviour: a lower return rate than your category peers, if you can show it from your data.
- Assortment depth: new launches, exclusives or hero styles that draw traffic.
- Marketing commitment: advertising or promotion spend you plan on the platform.
- Channel alternatives: your margin on your own website and other marketplaces. State this factually, not as a threat.
- Operational quality: dispatch speed, cancellation rate and catalogue quality.
Be honest about weak points too. If your return rate is high, expect the other side to raise it, and have your plan to fix it ready.
Structure a specific ask
A vague request for a lower commission is easy to decline. A narrow, evidence-backed ask is easier to approve. Pick one or two from this table.
| Ask | When it fits | Evidence to bring |
|---|---|---|
| Rate reduction on a category | One category is growing fast and drives most of your volume | Category sales trend, share of your platform revenue |
| Slab or volume-linked rate | You can commit to a higher sales run-rate | Past growth, inventory and launch plan |
| Fee waiver or cap | A fixed or return-related fee eats into low-priced items | Fee as a share of net realisation on those SKUs |
| Correction of wrong charges | Audit shows deductions that differ from agreed terms | Order-level mismatch list with agreement clause |
Always quote your agreement clause or rate card line, not memory.
Run the conversation and lock it in
Request a meeting with your key account manager, and share a short summary beforehand. In the discussion, lead with the overcharge findings (if any), then the growth story, then your specific ask. Ask what the marketplace needs from you in return, such as stock depth, a launch calendar or ad commitment, and decide what you can truly deliver.
Once there is a verbal yes, get it in writing: the new rate or fee, the categories or SKUs covered, the effective date, the duration and any conditions. Ask for an amended annexure or a confirmation email from an authorised person. Then check that the next settlement cycle reflects it. Tax components such as GST and TCS are governed by law and your agreement, so confirm treatment with your tax adviser rather than negotiating them.
Track savings and revisit terms
A concession is only worth something if it shows up in settlements. After the effective date, compare charged commission against the new terms every cycle. Log any mismatch as a recovery case with order references and follow up until it is closed.
Review terms at least when your contract renews, when your category mix shifts, or when your sales cross a level you can cite. Keep a simple record of each negotiation: what you asked, what you got, and what you promised. It makes the next round faster. A reconciliation tool such as MarketplaceMetrics can keep the charged-versus-agreed comparison running so the next negotiation starts from clean data.
Worked example
Illustrative example only. These figures are hypothetical, not actual marketplace rates.
A brand has ₹40,00,000 of monthly sales on a marketplace. Its agreement says 18% commission applies to all categories. During the audit, it finds that ₹6,00,000 of sales in one category was charged at 20%.
- Overcharge: 2% of ₹6,00,000 = ₹12,000 for the month. This is a recovery claim, not a negotiation point.
- Negotiation ask: a 1 percentage point reduction on the remaining ₹34,00,000 of monthly sales, citing consistent growth.
- If granted: 1% of ₹34,00,000 = ₹34,000 per month, or ₹4,08,000 over 12 months, assuming sales stay at the same level.
The brand goes in with the ₹12,000 error list and a clear ask, and asks for the revised rate in an amended annexure.
Questions and answers
Can a small brand negotiate commission with Myntra or Nykaa?
It is possible, but leverage is lower. Smaller brands usually get further by fixing wrong deductions, asking for narrow concessions such as a category rate or fee cap, and showing growth data. Confirm what is flexible with your key account manager.
Is negotiating with Nykaa different from Myntra?
Fee structures, categories and agreement terms can differ between marketplaces, so do not assume one approach fits both. Read each seller agreement and rate card separately, audit each platform's settlements, and tailor your ask to the terms you actually have.
What data should I bring to a commission negotiation?
Bring your seller agreement and rate card, three to six months of settlement reports, sales and return trends by category, a list of charges that differ from agreed terms, and your plans for launches and marketing on the platform.
How often should I revisit commission terms?
Review them at contract renewal, after a major shift in category mix, or when your sales reach a level you can cite as leverage. Check settlements every cycle so any agreed change is actually applied and errors are raised quickly.