Amazon Set to Launch Bazaar: A New Initiative in India’s Fast-Growing Fashion and Lifestyle E-commerce Sector
India’s e-commerce sector has been witnessing tremendous growth in recent years, with the fashion and lifestyle segment being one of the most competitive. Amazon is preparing to make another attempt to break into this space, setting up a battle with rival Flipkart, owned by Walmart; Reliance’s Ajio; and SoftBank-backed upstart Meesho.
A Special Store on Amazon: Bazaar
According to sources close to the matter, Amazon is planning to launch a special store called "Bazaar" where it will not levy any extra charges to sellers offering unbranded and trendy fashion and lifestyle products. The items sold through Bazaar will be priced under 600 Indian rupees ($7.2), making them affordable for customers.
Benefits for Sellers
The communication from Amazon to its partners highlights the benefits that sellers can expect from Bazaar:
- Access to tens of millions of customers: With Bazaar, sellers will have access to a massive customer base, increasing their chances of selling more products.
- Hassle-free delivery: Amazon promises to make the delivery process seamless and hassle-free for sellers, reducing their workload.
- Zero referral fee: Unlike other e-commerce platforms, Amazon will not charge any referral fees to sellers who sell their products through Bazaar.
The Competition
Flipkart leads the fast-fashion e-commerce space in India, but it faces mounting competition from Ambani’s Ajio. According to research firm Bernstein, Ajio has amassed about 30% market share in the segment. To counter this, Flipkart is planning to expand its focus on fast fashion, according to a recent report.
Shein and Reliance’s Joint Venture
Shein, a global pioneer in the fast-fashion category, was banned by India last year. However, it is set for a comeback with a joint venture with Reliance. This move will certainly give Amazon’s Bazaar a run for its money.
Amazon’s Investments in India
Amazon has deployed over $7 billion in India, and it plans to invest an additional $2.3 billion in its e-commerce operations by 2030. While this is a significant investment, it is still lower than what rival Flipkart has invested in the country.
The Fast-Fashion E-commerce Space in India
According to Bernstein, the fashion market is extremely fragmented offline, and the online market is seeing similar trends with multiple players emerging to gain share. Ajio has sustained its growth rates above the industry average, while Urbanic was not able to sustain its growth owing to lagging user experience and inefficient return policies.
Conclusion
With Bazaar, Amazon is making a bold move into India’s fast-growing fashion and lifestyle e-commerce sector. The special store promises to offer sellers access to tens of millions of customers, hassle-free delivery, and zero referral fees. However, the competition in this space is fierce, with Flipkart, Ajio, and Shein/Reliance’s joint venture vying for market share.
References
- TechCrunch: Amazon Set to Launch Bazaar: A New Initiative in India’s Fast-Growing Fashion and Lifestyle E-commerce Sector
- Bernstein: The fashion market is extremely fragmented offline, and the online market is seeing similar trends with multiple players emerging to gain share.
- Amazon: Amazon invests $2.3 billion in its e-commerce operations by 2030.
What Do You Think?
Will Bazaar be a success for Amazon? Share your thoughts on the Indian e-commerce space and what you think about this new initiative from Amazon.
