SUMMARY
Amazon Bazaar is live on the ecommerce major’s Android app in India and offers budget-friendly products such as apparel, watches, among others, in the sub-INR 600 range
With this, the marketplace is likely looking at grabbing a bigger pie of the price-conscious Indian customers in Tier-II, III and beyond cities
As per Inc42, the Indian ecommerce space is projected to reach a market size of $400 Bn by 2030
Ecommerce major Amazon has forayed into the unbranded segment with the launch of a new vertical ‘Bazaar’.
The new offering is already live on Amazon India’s Android app and offers unbranded and budget-friendly products such as apparel, watches, shoes, jewellery and luggage in the sub-INR 600 range.
With this, the marketplace likely aims to grab a bigger pie of the price-conscious Indian customers in Tier-II, III and beyond cities. The company said Amazon Bazaar will list products from sellers, especially from manufacturing hubs across the country.
“We continue to invest and innovate on behalf of our customers and third-party sellers and are excited to introduce the Amazon Bazaar storefront on Amazon.in where customers can discover and shop ultra-affordable fashion and home products listed by sellers, especially from manufacturing hubs across India,” said an Amazon spokesperson.
This comes two months after reports surfaced that the ecommerce major was gearing up to launch the new vertical, Bazaar.
Sources told Economic Times that the new offering will only be available to a select cohort of users, adding that Bazaar will be placed prominently on the app.
While the company usually has a two-day delivery timeline, the products listed on Amazon Bazaar have a longer delivery estimate of four to five days.
The move is expected to open up a new avenue for Amazon to acquire new customers and will help it diversify its offerings.
The launch of the new offering comes close on the heels of Amazon’s entry into the logistics business in India and it introducing a new vertical called Amazon Shipping. Alongside, the company’s India marketplace arm, Amazon Seller Services, also received an infusion of INR 830 Cr from its US parent.
With the new vertical, Amazon has directly locked horns with SoftBank-backed Meesho and Flipkart’s Shopsy, both of which offer pocket-friendly offerings to customers and have a strong presence in the low-cost ecommerce segment.
The latest development comes at a time when the ecommerce space continues to gain ground across the country on the back of cheap internet and growing smartphone penetration. As per a recent report by AllianceBernstein, ecommerce continues to see strong traction in Tier II+ markets.
The report, based on December 2023 data, noted that Meesho saw healthy growth in the markets beyond Tier-II and clocked a 32% year-on-year (YoY) growth while competitor Flipkart saw an uptick of 21% YoY.
During the same period, Amazon, however, saw a slower user growth of 13% on account of the marketplace’s relatively premium offerings compared to its competitors.
At the heart of this is the growing homegrown ecommerce space, which is projected to reach a size of $400 Bn by 2030, as per Inc42.
