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US e-commerce giant Amazon plans to enter a new market segment of low-cost fashion and lifestyle with the launch of Amazon Bazaar, targeting valued customers in India, according to a report in the Economic Times. That’s what it means. The move comes as demand for mass-market products has slowed and Amazon faces a slowdown in its own growth.
Amazon Bazaar has begun an onboarding process for sellers, encouraging them to list unbranded fashion and lifestyle products such as apparel, watches, shoes, jewelry, and luggage at the following prices: INR600, the report said, citing the company’s communications to distributors.
“Bazaar is Amazon’s new store where you can sell fashion and lifestyle products online at no additional charge, making your business operations more profitable,” Amazon’s documentation for sellers says. Masu.
In this space, it will compete with SoftBank-backed Meesho and Flipkart’s Shopsy (via a separate app), two notable players in the low-cost, unbranded product space. Additionally, Mukesh Ambani’s Reliance Industries is working on its own low-cost platform ‘Ajio Street’.
Delivery schedule and zero introduction fee
Amazon Bazaar is aiming for a two- to three-day delivery schedule, a departure from the usual expedited delivery proposition for Prime members. The company plans to eliminate referral fees for sellers, which is especially important for products with low average selling prices (ASPs).
A January report from research firm Bernstein revealed that Amazon India’s user growth rate in December 2023 will be just 13%, leaving it behind Flipkart and Meesho. To counter competition and regain growth momentum, Amazon is adapting its strategy in India, the report said. This is a challenge facing Meesho, which has gained market share in fields such as fashion and home care.
The Easy Ship service’s zero referral fee and no closing fee proposition is aimed at attracting sellers to Amazon Bazaar.
Also, after a one-year hiatus, Amazon INRInvesting $830 million in Indian market entity; INRAmazon Pay received $350 million in inflows earlier this month, demonstrating a renewed focus on growing the Indian market.
Amazon faces stiff competition globally, especially in the United States, from Chinese online retailers Shein and Temu. In response, Amazon is exploring hyper-local delivery options and is in talks with brands and sellers to offer faster delivery, especially for products in the home care and non-grocery consumer categories. .
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Published: February 21, 2024, 11:10 AM IST
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