Core Insights - The article discusses the launch of a "Million Commission-Free Plan" by Xiaohongshu to attract more merchants and accelerate business expansion, offering commission-free transactions up to 1 million yuan from September 1, 2025, to August 31, 2026, while only retaining a 0.6% payment channel cost [1][3]. Group 1: Commission Structure - Previously, Xiaohongshu's commission rates varied by category, generally ranging from 2% to 5%, with specific rates of 5% for women's clothing, personal care, and pet categories, 4% for beauty products, and 2% for fresh produce [3]. - Under the new plan, multiple stores under the same merchant can share the 1 million yuan incentive, and if the original category rate is below 0.6%, the original rate will apply; any amount exceeding 1 million yuan will revert to the original rate [3]. Group 2: Business Strategy - Xiaohongshu aims to enhance its advertising revenue by attracting more merchants to generate transactions, as merchants are more likely to invest in advertising for increased traffic [3]. - The company has been accelerating its commercialization efforts throughout the year, including recruiting e-commerce operation service providers and upgrading merchant settlement periods to improve cash flow efficiency [4]. Group 3: Competitive Landscape - Other e-commerce platforms like Taobao, JD.com, and Meituan are also implementing favorable policies to attract merchants, with Taobao launching a 500 billion yuan subsidy plan and JD.com offering commission-free policies for new merchants in specific categories [4]. - Douyin is also planning to implement commission-free measures in live streaming and short video scenarios, expanding its coverage to various product categories [5][6].