The AJIO business model is a hybrid: Reliance Retail’s fashion platform earns money by selling its own private labels and bought-in third-party stock, and by taking a commission from marketplace sellers, while Reliance doesn’t publish AJIO’s standalone revenue or profit. Anything quoted about AJIO’s size is therefore an estimate, and I’ve flagged where sources disagree.
AJIO makes money in four ways, and the first two matter most.
- Selling private labels: its own brands, which carry higher margins and tighter control
- Selling third-party stock: brands it buys and resells, and brands it sells under a dropship arrangement
- Marketplace commission: a cut of sales made by sellers listing on the platform
- Advertising and partnerships: retail media and brand programmes, which add income at the edges
- One profile says exact standalone figures aren’t always disclosed, and AJIO contributes meaningfully to Reliance Retail’s overall revenue
A Hybrid Model
AJIO mixes two retail models instead of choosing one.
- In the inventory model, AJIO buys products and sells them, which gives it control over pricing, quality and exclusivity
- In the marketplace model, third-party brands list their own products, which widens the assortment without AJIO holding the stock
- One company profile says this hybrid lets it control some product lines directly while allowing outside brands to list
- AJIO also runs a dropship model, under which it purchases products from sellers, according to one seller guide, which reduces operational burden for the sellers
Commission Income
Marketplace sellers pay AJIO for access to its customers, and the rate depends on whom you ask.
- One seller guide says commission is between 8% and 10% of the selling price, excluding GST
- The same guide later says rates range from 15% to 30% depending on category, brand positioning and seller profile, so it contradicts itself
- As an illustration, a ₹1,000 shirt at 10% commission costs the seller ₹100, and at 20% it costs ₹200
- Sellers also pay logistics, payment processing and other marketplace charges on top
- Check the current rate card for your category before listing
Private Labels
Own brands are the margin lever, as in most fashion retail.
- One timeline says AJIO introduced private labels to improve margins and reduce dependence on third-party sellers
- Private labels give AJIO control over design, pricing and inventory
- They target younger shoppers who want affordable, trend-led fashion
- The same account says the company moved from heavy discounting to a more curated platform, because deep discounts eroded margins and created unsustainable price expectations
The Reliance Advantage
AJIO sits inside a very large retail group, and that shapes its economics.
- One case study says AJIO uses Reliance stores as hubs to reduce returns
- It also draws on Reliance’s logistics and warehouse network and says it invested in warehouse automation
- Marketing runs partly through Reliance’s own channels, including Glance and JioAds
- Retail media on AJIO’s own properties adds an income stream that helps fund lower prices and faster shipping, according to one analysis
New Initiatives
AJIO has widened beyond mainstream fashion.
- AJIO Luxe targets premium shoppers
- AJIOGRAM supports emerging Indian fashion startups and D2C brands
- AJIO Rush is a fast-delivery service, said to have reached 600 or more cities by March 2026 in one case study
- These add reach and brand value, though none has published returns
The Returns Problem
Returns are the single biggest threat to fashion e-commerce profit.
- One case study says fashion e-commerce returns in India run at 25% to 40%
- Each return carries shipping, handling and sometimes unsellable stock
- Using stores as return hubs is one way AJIO tries to cut that cost
- Even a good gross margin can vanish if returns are high
What We Know About Size
Estimates exist, but they disagree.
- One analysis puts AJIO’s 2024 GMV at $2 billion to $2.5 billion, citing industry estimates, while another says it scaled to $3 billion
- A 2021 report said AJIO accounted for 25% of Reliance Retail’s apparel sales
- Reliance Retail’s Q4 FY26 revenue from operations was ₹87,344 crore, up 11.1%, with the digital and new commerce segment, which includes AJIO, at about 18% of the total, according to one case study
- The same case study says AJIO’s average bill value rose 23% year on year in Q4 FY26 and claims about a 30% share of fashion e-commerce monthly active users
- Those figures come from secondary analyses, not AJIO’s own accounts
Is AJIO Profitable?
Nobody outside Reliance can say with certainty.
- One case study says a report had AJIO on track to become the first profitable online venture under Reliance Retail
- Another account describes sustained losses and delayed profitability in earlier years, with Reliance funding the business
- A profile says profitability improved thanks to private labels and operational efficiencies
- Without standalone accounts, treat any profit claim cautiously
Risks and Competition
The pressures are the same ones the whole sector faces.
- Meesho dominates ultra-value, while Flipkart and Amazon drive mass value, according to one analysis, and Tata CLiQ competes in fashion and luxury
- Quick commerce raises delivery expectations, which is why AJIO Rush exists
- Heavy discounting can win customers but erode margins
- High returns and logistics costs cut into profit
FAQs
Q1. How does AJIO make money?
Mainly by selling its own brands and third-party stock, and by taking commission from marketplace sellers, with some income from advertising.
Q2. What commission does AJIO charge sellers?
One guide says 8% to 10% and also 15% to 30%, so it varies by category and seller, and you should check the current rate card.
Q3. Is AJIO owned by Reliance?
Yes. It was launched in 2016 as Reliance Retail’s fashion e-commerce platform.
Q4. Does AJIO publish its revenue?
Not separately. Reliance reports it within its digital and new commerce segment, so outside figures are estimates.
