Amazon, a leading player in the e-commerce industry, has entered the unbranded market by introducing a new vertical called ‘Bazaar’.
The new vertical is now available on Amazon India’s Android app, providing unbranded and affordable products including apparel, watches, shoes, jewellery, and luggage priced under INR 600.
With this move, the marketplace is likely targeting a larger share of price-conscious Indian customers in Tier-II, III, and beyond cities. The company stated that Amazon Bazaar will feature products from sellers, particularly those based in manufacturing hubs across the country.
“We continue to remain committed to making investments and breaking new ground for our clients and third-party suppliers. An Amazon representative said, “We’re thrilled to introduce the Amazon Bazaar marketplace on Amazon.in, where customers can browse and buy incredibly low-cost fashion and home products from sellers, especially those from manufacturing hubs across India.”
This development comes just two months after reports emerged indicating that the e-commerce giant was preparing to launch its new vertical, Bazaar.
Continue Exploring: Amazon to challenge Meesho with budget-friendly fashion vertical ‘Bazaar
Sources informed the Economic Times that the new offering will be accessible only to a specific group of users. They also mentioned that Bazaar will be prominently featured on the app.
While the company typically offers a two-day delivery timeframe, products featured on Amazon Bazaar come with a delivery estimate of four to five days.
The move is anticipated to create a new channel for Amazon to attract additional customers and will aid in diversifying its product range.
The introduction of the new offering closely follows Amazon’s foray into the logistics sector in India and the launch of a new vertical named Amazon Shipping. Moreover, Amazon’s US parent firm recently invested INR 830 Cr in Amazon Seller Services, the business’s India marketplace division.
Continue Exploring: Amazon India’s marketplace division sees INR 830 Cr investment from US parent
With the introduction of this new vertical, Amazon is directly competing with SoftBank-backed Meesho and Flipkart‘s Shopsy, both of which provide affordable options to customers and have a significant presence in the budget-friendly e-commerce segment.
The recent development comes as the e-commerce sector continues to expand throughout the country, driven by affordable internet access and increasing smartphone usage. According to a recent report by AllianceBernstein, e-commerce is experiencing significant growth in Tier II+ markets.
Based on data from December 2023, the report highlighted that Meesho experienced robust growth in markets beyond Tier-II, achieving a 32% year-on-year (YoY) increase, while competitor Flipkart observed a YoY growth of 21%.
During the same period, Amazon experienced a more modest user growth of 13%, likely due to the marketplace’s relatively higher-priced offerings compared to its competitors.
At the core of this trend is the flourishing domestic e-commerce sector, expected to reach a valuation of $400 billion by 2030, according to projections.
Continue Exploring: Amazon India adjusts seller fees, impacts various categories starting April 7
