US e-commerce giant Amazon is set to launch Amazon Bazaar in India to target value shoppers and expand into a new market segment of low-cost fashion and lifestyle, according to a report in the Economic Times. The move comes amid slowing demand for mass-market products and Amazon’s own growth.
Amazon Bazaar has begun the onboarding process for sellers, inviting them to list unbranded fashion and lifestyle products priced below Rs 600, including apparel, watches, shoes, jewellery and luggage, the company reportedly told sellers.
Get cash in minutes!
Apply instantly for the best personal loan with lowest interest rate
“Bazaar is a new Amazon storefront that allows businesses to sell fashion and lifestyle products online at no extra cost to them, making them more profitable,” a statement from Amazon to sellers said.
It will compete in this space with SoftBank-backed Meesho and Flipkart’s Shopsy (via a separate app), both of which are big players in the low-cost, no-brand category, as well as Mukesh Ambani’s Reliance Industries, which is working on its own low-cost platform, Ajio Street.
Delivery schedule and free referral fee
Amazon Bazaar aims for a delivery timeline of two to three days, as opposed to the usual expedited delivery proposition for Prime members, and the company plans to charge zero referral fees to sellers, which is especially important for products with a lower average selling price (ASP).
A January report by research firm Bernstein highlighted that Amazon India’s user base is expected to grow just 13% in December 2023, lagging behind Flipkart and Meesho. To counter competition and regain growth momentum, Amazon is adjusting its strategy in India, the report said, as it faces a challenge from Meesho, which is gaining market share in areas such as fashion and home care.
The Easy Ship service’s zero referral fee and no payment processing fee offer is aimed at attracting sellers to Amazon Bazaar.
Amazon also pumped Rs 8.3 billion into its Indian marketplace unit and Rs 3.5 billion into Amazon Pay earlier this month, signalling a renewed focus on growth in the Indian market after a year-long hiatus.
Amazon faces stiff competition globally, especially in the U.S., from Chinese online retailers Shein and Temu. In response, Amazon is in talks with brands and merchants to explore hyper-local delivery options to offer faster delivery, especially for products in home care and non-food staples categories.
Topics you may be interested in
Source link
