Xiaohongshu E-commerce launched its “One Million Commission-Free Plan” on August 24. From September 1, 2025, to August 31, 2026, merchants will be exempt from paying commission on their first 1 million RMB ($137,000) in transactions, with only a 0.6% payment channel fee retained. Previously, Xiaohongshu (also known as RedNote) applied category-based commission rates mostly ranging between 2% and 5%. The new policy simplifies charges by reducing the first 1 million RMB in transaction fees to 0.6% across all categories. Multiple stores under the same entity will share the quota. The plan underscores Xiaohongshu’s ambition to expand its e-commerce ecosystem and attract new merchants.