Amazon looking to launch low-priced fashion and lifestyle products vertical in India

US e-commerce giant Amazon is set to venture into a new market segment - low-priced fashion and lifestyle - with the launch of Amazon Bazaar, targeting value customers in India, according to a report. The move comes as demand for mass-market products slows down and Amazon faces a deceleration in its growth.

Amazon Bazaar has initiated the onboarding process for sellers, urging them to list unbranded fashion and lifestyle products, including apparel, watches, shoes, jewelry, and luggage, at prices below INR 600, the report said, citing the company's communication to merchants.

“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,” reads a document from Amazon to sellers.

In this segment, it will compete with SoftBank-backed Meesho and Flipkart's Shopsy (via a separate app), who are notable players in the unbranded and low-priced products space. Additionally, Mukesh Ambani-led Reliance Industries is working on its low-priced platform Ajio Street.

Delivery Timelines and Zero Referral Fee

Amazon Bazaar aims for delivery timelines of two or three days, deviating from its usual fast delivery proposition for Prime members. The company plans to offer zero referral fees to merchants, especially for products with a low average selling price (ASP).

A January report by research firm Bernstein highlighted that Amazon India experienced only 13 percent user growth in December 2023, trailing behind Flipkart and Meesho. To counter competition and regain growth momentum, Amazon is adapting its strategy in India, the report said. It faces challenges from Meesho, which has gained market share in segments like fashion and homecare.

The proposed zero referral fee and no closing fee for the Easy Ship service aim to attract merchants to Amazon Bazaar.

Also after a year-long hiatus, Amazon infused Rs 830 crore into its Indian market entity and Rs 350 crore into Amazon Pay earlier this month, signaling a renewed focus on growth in the Indian market.

Globally, Amazon faces intense competition, particularly in the United States, from Chinese online retailers Shein and Temu. In response, Amazon is exploring hyperlocal delivery options and engaging in conversations with brands and sellers to offer faster delivery, especially for products in the homecare and non-grocery daily items categories.

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