Amazon, the ecommerce major, is reportedly gearing up to launch its new vertical, Bazaar, showcasing budget-friendly, unbranded fashion and lifestyle products.
As per ET’s report, Amazon Bazaar is presently onboarding sellers and encouraging them to list unbranded products, including apparel, watches, shoes, jewellery, and luggage, all priced under INR 600.
According to sources familiar with the matter, the company is actively seeking to attract Indian value customers, especially as demand for mass-market products slows down and its growth rate decelerates.
“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,” as per a document revealed by ET.
Continue Exploring: Meesho fastest growing e-commerce player; GMV tops $5 Billion: Alliance Bernstein Report
The delivery timelines for Amazon Bazaar products are expected to be two to three days, contrasting with its usual fast delivery for Prime members.
“Consumer cohorts at the lower end of the market typically do not prioritise faster deliveries… They (Amazon India) have lost out on the segment so far and essentially want to tap the typical Meesho customer,” the report said.
The market segment has already been explored by Meesho, supported by SoftBank, and Flipkart‘s Shopsy (accessible through a separate app). Reliance Industries, led by Mukesh Ambani, is also in the process of creating a budget-friendly platform called Ajio Street.
Continue Exploring: Meesho diversifies strategy, set to launch financial services and expand grocery delivery for enhanced profitability
Amazon proposes eliminating referral fees for merchants, a particularly significant move for products with a low average selling price (ASP). Meesho, boasting an ASP ranging from INR 300 to 350, operates under a commission-free model, instead generating revenue through advertising and offering logistics services to sellers.
It’s worth noting that Meesho, unlike e-commerce behemoths Amazon and Flipkart, does not possess or manage warehouses and logistics operations.
Continue Exploring: Amazon India charts new course: Partners with IWAI to utilize inland waterways for package shipping
The recent development follows closely behind Amazon’s venture into the logistics sector in India, marked by the introduction of a new division named Amazon Shipping. Initially, the company will focus on managing non-Amazon orders as it steps into this domain. Amazon has commenced partnerships with direct-to-consumer (D2C) brands, logistics aggregators, and other enterprises directly serving consumers to launch this innovative initiative.
This comes at a time when Amazon Seller Services, the marketplace business of Amazon India, has received INR 830 Cr from its US parent. As part of this capital injection, the company has allocated 830 Mn equity shares to Amazon Corporate Holdings Ltd and Amazon.com.inc.
Continue Exploring: Amazon India’s marketplace division sees INR 830 Cr investment from US parent
This recent investment comes after Amazon injected INR 350 Cr into its fintech arm, Amazon Pay, on January 19. With this, Amazon’s cumulative investment in its Indian ventures for the year surpasses INR 1,000 Cr.