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Blinkit Commission Model Explained

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Blinkit Commission Model Explained

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What Is the Blinkit Commission Model?

Blinkit is a quick commerce platform. It allows customers to order groceries, household essentials, and daily items from local dark stores. To maintain fast delivery, Blinkit partners with sellers and store owners. In return for this service, Blinkit charges a commission on every sale.

This commission helps Blinkit cover costs related to logistics, platform maintenance, and customer service. It also ensures smooth operations across the supply chain. Blinkit’s business model depends heavily on this commission structure, as it does not own physical stores.

Why Blinkit Uses a Variable Commission System

All products demonstrate different qualities in the market. The packaged snack industry generates high profit margins because of its lucrative business model. Some products including fresh vegetables and milk may fail to generate high-profit margins although other products such as packaged snacks often succeed. To account for this difference, Blinkit uses a variable commission system. This means different categories have different commission rates.

By using variable rates, Blinkit can keep the platform affordable for sellers and maintain a good selection of products. It also allows Blinkit to support sellers with high-volume items while maintaining profitability on premium items.

Difference Between Blinkit and Traditional Marketplace Models

In traditional online marketplaces, sellers list their products, and platforms may charge a fixed fee per sale. Blinkit works differently. It uses a more hands-on model. The company takes care of:

  • Order placement
  • Inventory visibility
  • Delivery to customers
  • Customer service

In return, Blinkit charges a percentage of every sale. This amount is automatically deducted before the seller receives payment.

How Does Blinkit Charge Commission from Sellers?

Flat vs. Variable Commission Models

Earlier, some sellers had fixed commission rates across all product types. However, this created unfair competition and reduced profits for both Blinkit and sellers. Today, Blinkit follows a variable model.

This model means that commission varies depending on:

  • The type of product
  • The price of the product
  • Delivery complexity
  • Return and damage risk

Blinkit's Current Slab-wise Commission System (2025 Update)

As of 2025, Blinkit uses a slab-based model that works as follows:

  • Products under ₹500 – Commission around 2%
  • Products between ₹500 and ₹700 – Commission around 6%
  • Products over ₹1,200 – Commission can be up to 18%

These rates may differ depending on category, city, or seller history. Blinkit reviews these slabs periodically.

Examples of How Commission Is Calculated

Let’s take three sample orders:

  1. A pack of biscuits priced at ₹100
    • Commission = 2% → ₹2
    • Seller receives ₹98

  2. A grocery combo pack priced at ₹600
    • Commission = 6% → ₹36
    • Seller receives ₹564

  3. A premium kitchen item priced at ₹1,500
    • Commission = 18% → ₹270
    • Seller receives ₹1,230

These numbers are just examples but show how Blinkit deducts commission before payment.

Also Visit : Blinkit VPOB and APOB

Types of Fees Deducted from Blinkit Sellers

Listing Fees and Category Charges

Currently, Blinkit does not charge any listing fee. However, premium categories like electronics or personal care may attract higher commission rates. This acts as a category-based charge.

Fulfillment and Packaging Charges

Blinkit provides packing guidelines. If Blinkit supplies packaging materials, sellers may be charged extra. Otherwise, packing is the seller's responsibility. Blinkit may deduct a small amount per order as a fulfillment charge.

Penalties, Returns, and Cancellation Charges

If orders are delayed, canceled, or rejected due to quality issues, Blinkit may impose penalties. These can include:

  • Restocking fees
  • Return processing charges
  • Damage compensation for faulty items

These deductions affect the final payout.

Delivery and Logistic Charges

Sellers do not pay direct delivery charges, as Blinkit handles delivery. However, delivery costs are covered through the commission model. Heavier or time-sensitive items may lead to higher commission deductions to cover logistics.

Blinkit Seller Earnings: What You Actually Take Home

Gross Sales vs Net Payout Explained

Gross Sales = Total amount from all orders before deductions

Net Payout = Final amount transferred to your bank account after all deductions (commission, returns, penalties)

Sellers should always focus on their net payouts, not just gross sales.

How Blinkit Calculates Your Final Settlement

Every week (or cycle), Blinkit calculates your:

  1. Total orders processed
  2. Total revenue from those orders
  3. Total commission, penalties, packaging, and returns deducted
  4. Final net amount paid to your bank account

This is visible in the Blinkit seller dashboard.

Blinkit Commission Calculator (Illustration with Numbers)

Let’s say:

  • You sell ₹1,00,000 worth of products in a week
  • Average commission = 10%
  • Commission deducted = ₹10,000
  • Returns = ₹2,000
  • Other deductions = ₹500

Net payout = ₹1,00,000 - ₹12,500 = ₹87,500

Profit Margin Breakdown for Blinkit Partners

Typical Margins by Product Category

  • Groceries (dry items): 10% to 15%

  • Dairy & perishables: 5% to 8%

  • Personal care: 15% to 20%

  • Beverages: 8% to 12%

  • Packaged foods: 12% to 18%

These are average market margins. Your actual profit depends on how you source your stock and manage returns.

High vs. Low Margin Products: What to Focus On

Focus more on:

  • Non-perishable packaged goods
  • Branded items with stable pricing
  • Grocery combos and value packs

Avoid overstocking:

  • Fragile or high-return items
  • Low-shelf-life products unless you have fast turnover

Also Read : How to Register Your Brand on Blinkit

 

Tips to Improve Your Net Profit as a Seller

  • Buy in bulk from distributors
  • Reduce order errors and return rates
  • Keep minimal packaging cost
  • Use Blinkit insights to optimize pricing
  • Run discounts only on fast-moving items

Blinkit vs Other Platforms: Commission Comparison

Platform Avg Commission Delivery Managed Seller Dashboard Returns & Deductions
Blinkit 8–15% Yes Yes Yes
Zepto 10–18% Yes Yes Yes
BigBasket 12–20% Yes Yes Yes

Which Platform Offers Better Margins for Sellers?

It depends on:

  • Product category
  • Location
  • Volume of sales
  • Return rates

Sellers with fast-moving products and high stock turnover generally find Blinkit more profitable.

When Is Blinkit the Best Choice for You?

  • If your business focuses on grocery, FMCG, or daily essentials
  • If you are located in a busy urban area with delivery demand
  • If you want to avoid the cost of handling logistics yourself
  • If you prefer quick payment cycles and real-time tracking

Common Mistakes That Reduce Seller Profits

Ignoring Return Policies and Damage Deductions

Unattended return policies lead to frequent losses. If you send wrong or damaged items, you’ll face deductions.

Fix: Train your packing staff well. Double-check orders before dispatch.

Not Tracking Daily Sales and Settlement Reports

If you don’t track sales and deductions daily, you may miss hidden charges or discrepancies.

Fix: Log in to your seller dashboard every day. Keep records for disputes.

Mismanaging Inventory Leading to Expiry Loss

Expired or near-expiry items increase returns and wastage.

Fix: Rotate stock regularly. Prioritize older inventory for sale.

Also Read : Blinkit Launches Bistro to Take on Zepto Cafe

 

Tips to Maximize Profit on Blinkit Despite Commissions

Smart Pricing Strategies

Set your selling prices slightly higher to cover Blinkit’s commission. Avoid excessive pricing, or your products may not sell.

Bundling and Promotions to Boost Cart Value

Offer product bundles like "Buy 2 Get 1 Free" or combo packs. It increases order value and helps clear stock faster.

Using Blinkit Data Tools for Inventory Planning

Blinkit provides analytics and trend reports on:

  • Top-selling items
  • Slow movers
  • Seasonal demand

Use this data to plan better, reduce wastage, and maximize profits.

Frequently Asked Questions (FAQs)

1. What percentage commission does Blinkit take?
Blinkit charges between 2% and 18%, depending on product category and price range.

2. How often are sellers paid by Blinkit?
Sellers are usually paid weekly, with detailed settlement reports shared via the dashboard.

3. Can I negotiate commission rates on Blinkit?
Standard rates apply to all. However, high-performing sellers may receive special terms upon review.

4. Does Blinkit charge for returns or order cancellations?
Yes, Blinkit deducts fees for returns, cancellations, or damaged products depending on the situation.

5. Is GST applicable on Blinkit commissions?
Yes. Blinkit issues GST invoices for commission deducted. You can claim GST input accordingly.

6. How do I track my payouts on the Blinkit dashboard?
Use the Blinkit seller login to view your dashboard, where all earnings, deductions, and settlements are shown in detail.

7. Who is the owner of Blinkit?
Blinkit was founded by Albinder Dhindsa. It is now owned by Zomato after an acquisition.

8. Which is better, BigBasket or Blinkit?
Both have pros. Blinkit is faster, while BigBasket offers more variety. For sellers, Blinkit has quicker turnover.

9. Is Blinkit available in Moradabad?
Blinkit continues to expand. Check the Blinkit app to confirm availability in Moradabad.

10. How much does a Blinkit franchise earn?
A Blinkit partner can earn between ₹75,000 and ₹2.5 lakh per month depending on store performance and location.

11. How do I become a Blinkit franchise?
Apply through Blinkit’s partner onboarding portal. Submit your business and property details, and wait for approval.

12. What is the commission on Blinkit?
It ranges from 2% to 18%, based on the type and price of the product.

13. How much does a franchise cost?
Opening a Blinkit dark store may cost between ₹1.5 to ₹2.5 lakh, including setup and operational expenses.

14. How much does Blinkit charge from sellers?
Charges vary per product and category. In general, sellers can expect 8–15% commission deductions.

15. How to be a seller on Blinkit?
Go to the Blinkit seller registration page, fill in the form, upload documents, and complete the verification process.

16. Can we earn money from Blinkit?
Yes. With proper management, inventory, and location, sellers can earn steady monthly income through Blinkit.

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Blinkit’s commission model in 2025 follows a variable, slab-based structure where sellers are charged between 2% to 18% depending on product type, price, and category. This helps Blinkit manage logistics, fulfillment, and customer service while enabling sellers to reach a large customer base without handling delivery. The platform also imposes deductions for returns, packaging, and penalties, making it essential for sellers to track net payouts. With proper inventory planning, pricing strategies, and use of Blinkit's insights, sellers can optimize profits and compete effectively on the platform.




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