Swiggy and Zomato Commission for Restaurants: What You Really Pay
If you sell on Swiggy or Zomato, you already know the commission stings. What many owners do not see clearly is how much of each order actually reaches their bank account. This guide explains how marketplace commission works and where the real cost hides.
How marketplace commission works
Marketplaces charge a percentage of the order value for listing you, finding you customers and, in many plans, handling delivery. Public reports put commission rates across a very wide range, from the high single digits to 30% or more, and the rate depends on your city, outlet, plan and negotiation. Always check your own agreement, because the number in a news article is not your number.
The costs beyond the headline rate
Commission is only the first line. A realistic view of an order includes:
- Payment and service fees that are separate from the commission.
- GST on those fees, which reduces what you keep.
- Discounts you fund to stay visible and competitive in the app.
- Advertising to appear near the top, which behaves like an auction.
- Refunds and disputes that you often absorb.
Add these together and the effective take on an order can be well above the headline commission. Work it out for your own outlet with last month's settlement report.
The hidden cost: you do not own the customer
The platform holds the customer's details and relationship. You cannot invite them back with an offer, and the next order might go to a competitor listed beside you. That is why many owners treat marketplaces as a discovery channel, not a home base.
How to reduce your dependence without leaving
You do not need to quit Swiggy or Zomato. Add a direct channel and move your regulars to it over time:
- Launch your own ordering website that customers can order from straight away.
- Put a QR code or short link on every delivery bag and at the counter.
- Offer a small reward on the first direct order.
- Keep marketplace listings for new customers and discovery.
Direct orders still carry costs such as payment-gateway fees and delivery, so they are not free. The difference is that you control those costs and keep the relationship. Read our deeper guide on the direct ordering alternative to marketplace commission.
A simple way to check your real numbers
Take one week of marketplace orders. For each, note the order value, the money that reached you and the discounts you funded. Divide what you kept by what customers ordered. That single percentage is your real take-home rate, and it is the number to compare against a direct channel.
A worked example, using your own numbers
Take an order of ₹600 as a simple illustration. Suppose the marketplace takes a commission, charges a service fee, and you funded a discount to stay visible. Add GST on the fees, and subtract any refund you absorbed. What reaches your account may be well below ₹600 times your headline margin. We deliberately do not give a fixed percentage, because yours depends on your agreement. Instead, pull last month's settlement report and fill in these columns for ten orders: order value, commission and fees, discount you funded, refunds, and money received. Totalling the columns gives you your real take-home rate.
Where the money goes on a marketplace order
- Food cost and kitchen labour: the same as any order.
- Packaging: delivery orders need more packaging than dine-in.
- Marketplace fees and commission: the part you negotiate or accept.
- Promotions: discounts and ads you pay for to stay visible.
- Lost customer relationship: not on the invoice, but the biggest long-term cost.
Levers owners actually use
Restaurants reduce the damage in four ways. They negotiate rates and plans when they have volume. They trim loss-making menu items on the platform and keep a tighter delivery menu. They stop discounting where orders would come anyway. And they move regulars to a direct channel. The last lever is the only one that changes who owns the customer. Our guide to {L("/articles/direct-ordering-for-restaurants-a-simple-guide", "direct ordering for restaurants")} walks through how to do it without losing marketplace orders.
A calm way to think about marketplaces
Marketplaces are an advertising and delivery service you pay for, not a place to build a brand. Use them to be found. Use your own channel to be remembered. Judge each channel on what it leaves you after all costs, and on whether the customer can reach you again.
Frequently Asked Questions About Marketplace Commission
How much commission do Swiggy and Zomato charge?
It varies by city, outlet and contract. Public reports range from the high single digits to 30% or more. Check your own agreement and settlement reports.
Can I negotiate the commission?
Some restaurants do, particularly larger or multi-outlet brands. Terms are specific to each agreement, so ask your account manager.
Do I have to stop selling on Swiggy and Zomato to order direct?
No. Direct ordering works alongside marketplaces. It gives your regulars a place to order from you directly.
What does GoOrderly do about this?
GoOrderly builds the direct side: an ordering website, customer app, self-ordering kiosk and admin console you own. We are a technology partner, not a marketplace. book a free demo to see how it would work for your restaurant.
Are marketplace fees tax deductible?
Fees are generally a business expense, and GST treatment depends on your registration and the invoice. Ask your accountant how to treat them in your books.
How do I find my real commission?
Use your settlement or payout report. Compare the total customers paid for a set of orders with the total deposited to you, including discounts you funded.