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

United States 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 the Indian value customer, as per an Economic Times report. The move comes as demand for mass-market products slows down and Amazon faces a deceleration in its own growth.

Amazon Bazaar has initiated the onboarding process for sellers, urging them to list unbranded fashion and lifestyle products, including apparel, watches, shoes, jewellery, and luggage, priced below ₹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 the segment, it will compete with SoftBank-backed Meesho and Flipkart's Shopsy (via a separate app), who are notable players in the low-priced, unbranded product space. Additionally, Reliance Industries, led by Mukesh Ambani, is working on its own low-price platform, Ajio Street.

Delivery Timelines and Zero Referral Fee

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

A January report from 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 Easy Ship service aim to attract merchants to Amazon Bazaar.

Also after a year-long hiatus, Amazon infused ₹830 crore into its India marketplace entity and ₹350 crore into Amazon Pay earlier this month, signalling 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, engaging in discussions with brands and sellers to offer faster delivery, especially for products in the homecare and non-grocery daily items categories.