Amazon launches Meesho competition, woos affordable fashion market in India: Report
In an attempt to capture the Indian value customer market, Amazon is launching a new vertical featuring low-priced, unbranded fashion and lifestyle products.
- Feb 21, 2024,
- Updated Feb 21, 2024 2:00 PM IST
Amazon is set to launch a new vertical featuring affordable, non-branded lifestyle and fashion products, according to sources. The move is seen as Amazon's strategy to attract value-conscious Indian consumers and counter slowing growth.
The new initiative, dubbed Amazon Bazaar, is already inviting sellers to list non-branded items such as apparel, shoes, and jewelry priced below Rs 600.
"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," a document from Amazon to sellers accessed by The Economic Times read.
The company is also diverging from its rapid delivery promise to Prime members, anticipating a delivery timeline of two to three days for Bazaar products.
"Consumer cohorts at the lower end of the market typically do not prioritise faster deliveries... They (Amazon India) have lost out on the market segment so far and essentially want to tap the typical Meesho customer," one of the people aware of the development told ET.
The low-price marketplace has been successfully explored by Meesho and Flipkart's Shopsy, while Reliance Industries is also developing a similar platform, Ajio Street. Amazon is also considering providing zero referral fees to sellers, crucial for products with low average selling prices.
The ecommerce giant is also reportedly in the early stages of discussions to enable delivery of certain products within a few hours, amid pressure from quick commerce platforms.
The company recently invested Rs 830 crore in its Indian marketplace entity, and Rs 350 crore in Amazon Pay, taking the total investment to nearly Rs 1,200 crore. On the global stage, Amazon's challengers include Chinese online retailers Shein and Temu.
Amazon is also looking at hyperlocal delivery options apart from engaging in discussions with brands and sellers to provide faster delivery especially in homecare and non-grocery daily items categories.
Also Read: 300% rise in net profit in Q3; Analysts see exciting times ahead for this mid-cap firm
Amazon is set to launch a new vertical featuring affordable, non-branded lifestyle and fashion products, according to sources. The move is seen as Amazon's strategy to attract value-conscious Indian consumers and counter slowing growth.
The new initiative, dubbed Amazon Bazaar, is already inviting sellers to list non-branded items such as apparel, shoes, and jewelry priced below Rs 600.
"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," a document from Amazon to sellers accessed by The Economic Times read.
The company is also diverging from its rapid delivery promise to Prime members, anticipating a delivery timeline of two to three days for Bazaar products.
"Consumer cohorts at the lower end of the market typically do not prioritise faster deliveries... They (Amazon India) have lost out on the market segment so far and essentially want to tap the typical Meesho customer," one of the people aware of the development told ET.
The low-price marketplace has been successfully explored by Meesho and Flipkart's Shopsy, while Reliance Industries is also developing a similar platform, Ajio Street. Amazon is also considering providing zero referral fees to sellers, crucial for products with low average selling prices.
The ecommerce giant is also reportedly in the early stages of discussions to enable delivery of certain products within a few hours, amid pressure from quick commerce platforms.
The company recently invested Rs 830 crore in its Indian marketplace entity, and Rs 350 crore in Amazon Pay, taking the total investment to nearly Rs 1,200 crore. On the global stage, Amazon's challengers include Chinese online retailers Shein and Temu.
Amazon is also looking at hyperlocal delivery options apart from engaging in discussions with brands and sellers to provide faster delivery especially in homecare and non-grocery daily items categories.
Also Read: 300% rise in net profit in Q3; Analysts see exciting times ahead for this mid-cap firm