Amazon India's 'Bazaar' vertical to sell low-priced fashion, lifestyle products
Amazon is gearing up to make a splash in India's affordable fashion and lifestyle sector with the introduction of 'Amazon Bazaar,' which will target budget-conscious consumers This development comes amid a slowdown in demand for mass-market items and a deceleration in Amazon's own growth. Amazon Bazaar has begun the process of enlisting sellers, urging them to offer unbranded fashion and lifestyle goods priced under Rs. 600.
Meesho, Flipkart's Shopsy, Reliance's AJIO Street to offer competition
Amazon Bazaar will face competition from SoftBank-supported Meesho and Flipkart's Shopsy, both prominent players in the low-cost, unbranded product market. In this space, Amazon will also take on Tata's Zudio, a value fashion brand, and Reliance Retail's own budget-friendly platform, AJIO Street. A document from Amazon to sellers reveals, "Bazaar is a new store on Amazon where you can sell your fashion and lifestyle products online at no extra charges, thus making it more profitable to run your business."
Delivery timelines, zero referral fees, and other strategies
Straying from its typical speedy delivery promise for Prime members, Amazon Bazaar aims to deliver products within two to three days. The company intends to offer zero referral fees to merchants, particularly important for items with a low average selling price (ASP). Amazon India saw 13% user growth in December 2023, lagging behind Flipkart and Meesho.
Amazon's measures to woo merchants
Amazon's zero referral fees and no closing fees for 'Easy Ship' service are designed to entice merchants to join Amazon Bazaar. Moreover, after a year-long break, Amazon recently invested Rs. 830 crore into its India marketplace entity and Rs. 350 crore into Amazon Pay, indicating a renewed emphasis on expansion in the Indian market.
