Amazon is gearing up to make a significant entry into the Indian e-commerce market with the introduction of a new section dedicated to affordable, unbranded fashion and lifestyle products. The US-based online retail giant is strategically targeting the budget-conscious Indian consumer base, especially as the demand for mainstream products slows down and Amazon’s growth rate decreases.
The forthcoming budget vertical, named Amazon Bazaar, is poised to offer a wide array of cost-effective items, including unbranded clothing and watches. This move is a direct challenge to established platforms like Meesho, which has carved out a niche in catering to budget-conscious shoppers.
Sources familiar with the matter reveal that Amazon Bazaar is actively recruiting sellers to list products priced below Rs 600. These products will include clothing, watches, shoes, jewelry, and luggage. Notably, Amazon Bazaar does not intend to charge sellers any additional fees for listing on the platform. This strategy is designed to make Amazon Bazaar more appealing and profitable for sellers.
One notable difference with Amazon Bazaar is the expected delivery schedule for products. Customers can anticipate longer delivery times, ranging from two to three days. This contrasts with Amazon’s standard fast delivery options, especially for Prime members. The rationale behind this decision is that customers in the lower price bracket may not prioritize speedy deliveries as much.
In its communication to sellers, Amazon emphasizes the advantages of Amazon Bazaar, stating, “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.”
This strategic move by Amazon is seen as a direct response to the success of platforms like Meesho, which has gained considerable traction in the budget-friendly segment. Meesho, backed by SoftBank, does not charge sellers for listing products and instead generates revenue through advertisements and shipping assistance.
With Amazon Bazaar, Amazon aims to capture a similar market by positioning itself as a platform where sellers can list products without incurring additional charges, particularly for products with lower price points. This initiative is targeted towards attracting budget-conscious shoppers who prefer platforms like Meesho.
While Amazon’s traditional model emphasizes fast deliveries and a robust logistics network, Amazon Bazaar will take a different approach, catering specifically to customers seeking affordable options. This strategic move underscores Amazon’s commitment to diversifying its offerings and expanding its reach in the highly competitive Indian e-commerce landscape.
