Amazon to launch a Rs 600-and-under vertical to tap deeper into the value customer segment

Amazon Bazaar is currently onboarding lifestyle products all priced below Rs 600.

Amazon is setting up a new vertical, Amazon Bazaar, to bring low-priced, unbranded fashion and lifestyle products to value customers, people familiar with the matter revealed.

Amazon Bazaar is currently in the process of onboarding sellers and encouraging them to list unbranded products, including apparel, watches, shoes, jewelry, and luggage, all priced below Rs 600. The Economic Times has reviewed the company's communication with merchants.

The move is an attempt to capture the Indian value customer segment, as demand for mass-market products slows.

Amazon is late to the party, with Meesho and Flipkart's Shopsy already having made significant inroads into this space. Additionally, Mukesh Ambani-led Reliance Industries is working on a low-price platform called Ajio Street.

Amazon is proposing a zero referral fee to merchants, which is crucial for products with low average selling prices (ASPs). Meesho, for example, operates on a zero-commission model while earning revenue from advertising and logistics services to sellers. However, Meesho does not own or run warehouses and logistics, unlike Amazon and Flipkart.

Satish Meena, an independent e-commerce analyst and advisor at Datum Intelligence, notes that Amazon Fashion has not been as successful as Myntra in India and sees Amazon Bazaar as another attempt to capture the market.

In January, a report from research firm Bernstein showed that Amazon India's user growth was only 13 percent in December 2023, primarily due to its more premium offerings compared to its peers.

Flipkart and Meesho, on the other hand, acquired 21 percent and 32 percent more users, respectively, during the same period.