Zepto Exploitative Practices Claims: What Brands Allege

Zepto exploitative practices alleged by listed brands include pressure to buy ads, unclear commissions and delayed settlements.

Several brands have accused Zepto of exploitative practices, alleging that the quick-commerce platform pressures sellers to spend on advertising, keeps commission arrangements unclear and changes commercial policies with limited notice.

The allegations were reported by The Morning Context after conversations with founders of brands listed on Zepto and a quick-commerce industry expert. The claims have not been independently verified by Lapaas Voice, and Zepto’s position should be considered alongside the sellers’ accounts.

What Brands Say About Zepto

The central complaint is that simply being listed does not guarantee useful visibility. Brands say they can feel compelled to buy advertising or promotional placement to remain discoverable inside the app. For smaller consumer brands, this can turn a seemingly attractive sales channel into a much more expensive one.

• Advertising pressure: sellers allege that paid promotion is treated as a practical requirement rather than an optional growth tool.
• Unclear commissions: founders say the effective cost can be difficult to forecast when fees, discounts and promotional deductions are combined.
• Changing policies: brands report that commercial terms can shift quickly, making inventory and margin planning harder.
• Payment concerns: delayed reconciliation or disputed deductions can put pressure on working capital.

Why Quick Commerce Creates Tension

Quick commerce is operationally expensive. Platforms must finance dark stores, delivery fleets, technology and customer discounts while promising extremely fast fulfilment. Those economics create pressure to earn more from advertising, seller commissions and promotional programmes.

Brands still value the channel because it can deliver high purchase frequency and instant consumer reach. The conflict begins when the platform has enough customer demand to dictate terms while individual sellers have limited bargaining power.

What Sellers Should Measure

For a brand, gross merchandise value is not enough. The relevant number is contribution margin after commission, discount funding, advertising, returns, expiry losses and payment delays. A product can sell quickly while still destroying margin.

• Track the effective take rate, not only the headline commission.
• Separate organic orders from paid-placement orders.
• Reconcile every deduction against the commercial agreement.
• Set limits on discount and advertising spend.
• Avoid dependence on one marketplace for most revenue.

What This Means for Zepto

Seller trust matters as Zepto scales and prepares for the public markets. Strong consumer growth can be weakened if brands reduce assortment, raise prices or move launches to competing channels. Transparent contracts, predictable policy changes and timely settlement would reduce that risk.

The dispute is also a reminder that quick-commerce growth has costs on both sides of the marketplace. Consumers see speed and discounts; brands see commissions, advertising auctions and inventory commitments. Sustainable growth requires both groups to believe the exchange remains fair.

Source: The Morning Context. Also read Zepto’s employee attrition and IPO disclosures.

Related: how Meesho’s zero-commission marketplace works.