Flipkart rival Amazon launches Bazaar, Here's what it will offer

Ecommerce giant Amazon has launched a new venture called Bazaar on its Indian platform, marking its entry into the fast-growing affordable fashion and lifestyle market.

With this new platform, The company aims to provide customers with a wide array of unbranded, cost-effective products. Bazaar is set to compete with established e-commerce players such as Meesho, Flipkart's Shopsy, and Reliance's Ajio.

Targeting tier II and III cities

Recognizing the potential in Tier II and III markets, Bazaar seeks to cater to the value-driven shopper with products priced under Rs 600. The platform will largely sell unbranded products, including apparel, watches, shoes, jewellery, and luggage.

The launch comes at a time when e-commerce growth in these areas is outpacing that in more urban regions, driven by platforms like Meesho, which has a zero-commission model and focuses on affordability.

It's worth noting that Amazon's introduction of Bazaar could disrupt the current market dynamics by leveraging its extensive logistics network and brand reputation to offer competitive prices and accessibility to a broader demographic.

Competing on price and accessibility

With the launch of Bazaar, Amazon is broadening its product offerings and adjusting its business model to better suit the value segment.

The company is proposing a zero referral fee for merchants and adjusting delivery speeds to optimize cost economics. The zero referral fee can make Bazaar an attractive platform for both customers seeking affordable options and sellers looking to reach a wider audience without the burden of high commission fees.

Facing stiff competition

Despite Amazon's dominant position in the global e-commerce market, the company faces a significant challenge in capturing a substantial share of India's value segment.

Competitors like Meesho have already established a strong foothold, particularly in smaller cities, by appealing to cost-conscious consumers. Moreover, the fast fashion and lifestyle market is crowded with players like Flipkart's Myntra and Reliance's Ajio, each vying for dominance.

Amazon's entry with Bazaar is a bold move to secure a piece of this lucrative market, but success will depend on its ability to differentiate itself and deliver on its value proposition.