E-commerce giant, Amazon, is set to venture into a new market segment — low-priced fashion and lifestyle. And it is doing so by targeting the Indian value customer with the launch of Amazon Bazaar, as per an Economic Times report. This move comes as a result of demand for mass-market products slowing down while Amazon faces a deceleration in its own growth.
“Bazaar” is a new vertical under Amazon where “no extra charges” will be imposed on vendors supplying unbranded and trendy fashion and lifestyle products. “Your products will be featured in a special store on Amazon, making them easy for customers to find,” the company said. The items sold via Bazaar will be priced under Rs 600, the report noted.
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Know What Amazon Bazaar Is All About
Amazon Bazaar has initiated the onboarding process for sellers, urging them to list unbranded fashion and lifestyle products, including apparel, watches, shoes, jewellery, and luggage, priced below Rs 600.
It aims for delivery timelines of two to three days, deviating from its usual fast delivery proposition for Prime members.
The company plans to offer a zero referral fee and no closing fee for Easy Ship service to merchants with the aim of attracting them. This is especially crucial for products with a low average selling price (ASP). The platform would expose these merchants to tens of millions of shoppers
The Competition
The fast-fashion e-commerce space has gained ground in India recently as local startups take inspiration from global fast-fashion pioneers like Zara, H&M and Uniqlo. Top player Flipkart leads the category but faces mounting competition from Ambani’s Ajio, which has amassed about 30% market share, according to research firm Bernstein.
The report also highlighted that Amazon India experienced only 13 per cent user growth in December 2023, trailing behind Flipkart and Meesho. It faces challenges from Meesho, which has gained market share in segments like fashion and homecare. To counter-compete and regain growth momentum, Amazon is adopting the ‘Bazaar‘ strategy in India.
Globally, Amazon faces intense competition from Chinese online retailers Shein and Temu. In response, Amazon is exploring hyperlocal delivery options, engaging in discussions with brands and sellers to offer faster delivery, especially for products in the homecare and non-grocery daily items categories.
Focus On India Market
The company is preparing to make another attempt to break into India’s fast-growing fashion and lifestyle e-commerce sector. In the segment, it will compete with rivals SoftBank-backed Meesho and Flipkart‘s Shopsy (owned by Walmart), who are notable players in the low-priced, unbranded product space. Additionally, Mukesh Ambani’s Reliance Industries is working on its own low-price platform, Ajio Street.
Also after a year-long hiatus, Amazon infused Rs 830 crore into its India marketplace entity and Rs 350 crore into Amazon Pay earlier this month, signalling a renewed focus on growth in the Indian market. Bazaar is one of the key new initiatives from Amazon. It has deployed over $7 billion in India, following the firm shutting down three of its businesses — wholesale distribution, food delivery and online learning in India in late 2022.
The company announced last year that it would invest about $2.3 billion in its e-commerce operations in the country by 2030, a far lower budget than its rival Flipkart. Amazon is instead doubling down on AWS in India and plans to deploy $12.7 billion in the cloud business in the country by 2030.
Amazon Bazaar could end up being a game-changer, proving extremely beneficial for merchants looking to sell their unbranded products on e-commerce platforms.
