WhatsApp Commerce

Aggregator Commission vs Direct Ordering: The Real Cost Breakdown

TT
Tezzu Team
||7 min read

Understanding How Aggregator Commissions Work

When you sell through Swiggy or Zomato, you pay a commission on every single order. This isn't a fixed amount — it's a percentage of the order value, typically ranging from 25% to 30%. Some restaurants report paying up to 35% after including all charges.

Let's be clear about what this means for your bottom line.

The Math: A Real-World Example

Let's say you run a restaurant doing 50 orders per day with an average order value of ₹400.

With a 28% Aggregator Commission

  • Daily revenue: 50 × ₹400 = ₹20,000
  • Commission paid: ₹20,000 × 28% = ₹5,600/day
  • Monthly commission: ₹5,600 × 30 = ₹1,68,000/month
  • You keep: ₹6,00,000 − ₹1,68,000 = ₹4,32,000

With Tezzu (₹10 per order)

  • Daily revenue: 50 × ₹400 = ₹20,000
  • Tezzu fee: 50 × ₹10 = ₹500/day
  • Monthly fee: ₹500 × 30 = ₹15,000/month
  • You keep: ₹6,00,000 − ₹15,000 = ₹5,85,000

The Difference

With Tezzu, you save ₹1,53,000 every month compared to a 28% aggregator commission. That's ₹18.36 lakhs per year — money that goes back into your business instead of the platform's pocket.

But What About the Traffic Aggregators Bring?

This is the most common counter-argument, and it's worth addressing honestly.

Aggregators do bring new customers. But consider this:

  • You're paying for every order, not just new customers. A loyal customer who orders from you every week through Swiggy costs you 28% every single time.
  • You don't own the customer relationship. The customer is loyal to Swiggy's discounts, not to your restaurant. They'll switch to a competitor if there's a better deal.
  • Your margins shrink. Many restaurants report operating at near-zero profit on aggregator orders after accounting for food cost + commission.

The Hybrid Approach

We're not saying you should delete your Swiggy listing tomorrow. Many successful Tezzu merchants use a hybrid approach:

  1. Use aggregators for discovery — New customers find you on Swiggy/Zomato.
  2. Convert them to your store — Include a card in their delivery saying "Order directly from our store and get 10% off next time." Share your tezzu.in/store/your-name link.
  3. Build your direct channel — Over time, more customers order through your own store page and WhatsApp, and your effective commission rate drops dramatically.

Beyond Commission: Other Hidden Costs

Aggregator commissions aren't the only cost. Consider:

  • Discounting pressure — Platforms push you to offer discounts to rank higher, further eroding margins.
  • Packaging mandates — Specific packaging requirements add cost.
  • Customer data ownership — You can't market to your own customers or build loyalty programs.
  • Algorithm dependency — Your visibility depends on the platform's ranking algorithm, which can change anytime.

What Tezzu's Flat Pricing Includes

At ₹10 per order with no percentage commission, here's what you get:

  • Your own online store page (tezzu.in/store/your-name)
  • WhatsApp ordering on your own number
  • Live dashboard with order management
  • Customer notifications and order tracking
  • Payment support (COD + UPI)
  • Delivery zone management

No hidden fees. No rising percentages as you scale. The more orders you get, the more you save.

#commission#swiggy#zomato#cost-comparison#revenue

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