Amazon India was in the process of onboarding sellers of unbranded reasonable products. This is because of the new shopping segment of Amazon India called ‘Bazaar’ which is finally live on its Android app. As of now the company has made no official announcement for the launch.
The products under the vertical are priced below 600 INR while most kitchenware and clothing start from 125 INR. These affordable products range from home decor, apparel, shoes, kitchenware, watches, sports, jewelry, etc.
The motive for this initiative is to penetrate deeper into the Indian Market. While Amazon has successfully captured the urban demographic this move will help tap the other Indian population as well. The model is developed solely for the Indian market.
Just 2 months back, the brand announced that it would start delivering to Gajoli, a small village in the Uttarkashi district of Uttarakhand. The brand takes pride in navigating narrow and treacherous paths. It believes that even remote areas like Ashram deserve the convenience of being able to receive Amazon packages.
The delivery time for the Bazaar is expected to be around 3-4 days. Since it targets a specific set of audiences, the vertical is only available on the Android mobile app and no other device. Although it remains a mystery yet whether Amazon will implement the feature for IOS or desktop users as well.
Amazon India and other e-commerce
With this launch, the brand is now entering a segment that was occupied by brands like Meesho, a commerce platform founded in 2015. It facilitates an entrepreneurial journey with low investment and trade between suppliers, customers, and even resellers.
A similar model also exists under Flipkart, called ‘Shopsy’ that caters to tier 2 and tier 3 cities in India. Though Flipkart and Shopsy have two separate apps while Bazaar is available on the Amazon app.
Value commerce in India was an uninvaded domain. According to Snapdeal’s CEO, Himanshu Chakrawarti, as of 2023 only 8% of the value lifestyle segment is online. He added that the space is not dominated by brands and the products are of non-standard quality.
Earlier customers from cohort focus struggled to find products with durability and quality that were also pocket-friendly. Amazon Bazaar could take the Indian market by storm if it satisfies the target audience’s needs without compromising the quality.
All the sellers listed on Bazaar are manufacturers across India. Amazon will not be charging any commission from them. Their revenue model for the segment will be similar to Meesho, that is earnings through ads.
This strategy could be an effective step for Amazon to regain its market share. The brand had been losing its commerce industry stake with only 13% in 2023. On the other hand Flipkart and Meesho stood at 48% and 32% respectively.
Amazon’s Bazaar recognizes the need of catering to the price sensitive audience, as it expands market reach, offers better pricing and variety, creates new opportunities, aims to satisfy unmet needs and challenges the existing market dynamics.