Amazon's New Move: Launching 'Bazaar' - A Budget-Friendly Fashion and Lifestyle Vertical in India

E-commerce giant Amazon is gearing up to introduce a cost-effective fashion and lifestyle vertical in India, named Amazon Bazaar. This strategic initiative aims to cater to value-conscious Indian consumers by featuring affordable, non-branded products in the fashion and lifestyle categories. The move comes as part of Amazon's efforts to counter slowing growth and tap into a market segment that prioritizes budget-friendly options.

Unveiling Amazon Bazaar

Amazon Bazaar is set to showcase a range of non-branded lifestyle and fashion items, including apparel, shoes, and jewelry, all priced below Rs 600. The platform invites sellers to list their products with no additional charges, making it a lucrative option for businesses looking to expand their reach.

Diverging from Prime Delivery for Bazaar

In a notable shift, Amazon anticipates a delivery timeline of two to three days for Bazaar products, deviating from its usual rapid delivery promise to Prime members. This strategic decision acknowledges that consumers in the lower market segment may prioritize affordability over faster deliveries.

Key Features of Amazon Bazaar:

• Focus on low-priced items: The platform will primarily feature apparel, shoes, and jewelry priced below Rs 600, catering to budget-conscious shoppers.

• No extra seller charges: Amazon aims to attract sellers by offering the platform free of additional charges, potentially increasing profitability for businesses.

• Longer delivery timelines: Unlike its usual focus on rapid delivery, Bazaar anticipates a delivery timeline of 2-3 days, reflecting the price sensitivity of the target audience.

• Zero referral fees (under consideration): To further incentivize sellers for low-margin products, Amazon is contemplating eliminating referral fees altogether.

• Exploring hyperlocal delivery: This model could offer faster delivery, particularly for non-grocery and homecare items, further enhancing competitiveness.

Competing in the Low-Price Marketplace

Taking cues from successful platforms like Meesho and Flipkart's Shopsy, Amazon aims to penetrate the low-price marketplace with Amazon Bazaar. Competitors like Reliance Industries are also entering this space with platforms like Ajio Street.

Zero Referral Fees and Seller Incentives

To support products with low average selling prices, Amazon is reportedly considering providing zero referral fees to sellers, creating a more attractive proposition for businesses participating in the Bazaar vertical.

Exploring Hyperlocal Delivery and Global Competition

Investment and Global Competition

Recent investments by Amazon in its Indian marketplace entity, totaling Rs 830 crore, and Rs 350 crore in Amazon Pay reflect the company's commitment to its Indian operations. On a global scale, Amazon faces competition from Chinese online retailers Shein and Temu.

Hyperlocal Delivery Options

In response to the growing trend of quick commerce platforms, Amazon is exploring hyperlocal delivery options. Discussions with brands and sellers are underway to enhance delivery speed, particularly in categories like homecare and non-grocery daily items.