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Ecommerce firm Amazon has launched ‘Bazaar’ where users can access pocket-friendly fashion, lifestyle and home essentials from various sellers. It will take on players such as Meesho and Flipkart’s Shopsy, targeting the value-driven segment with an array of unbranded products.

“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,” an Amazon India spokesperson said, responding to queries from YourStory.

Bazaar is currently accessible to certain Amazon customers via the company’s Android app. However, when last checked, the storefront was not found on Amazon’s website or iOS app.

With emphasis on affordability, Bazaar seeks to capture customers in Tier II and III cities by offering unbranded items such as apparel, accessories, footwear, luggage, kitchenware, and home decor, all priced under Rs 600.

Ecommerce continues to see strong growth in Tier II and III markets with Meesho gaining share, according to a report by AllianceBernstein. 

The report highlighted that, in December 2023, Flipkart, the industry leader, witnessed a 21% year-on-year growth in its user base, while Meesho saw a 32% year-on-year acceleration. However, Amazon has seen a slower user growth of 13%, primarily due to its relatively premium offerings compared to its competitors.

Amazon’s focus on a premium consumer base with fast delivery has garnered loyal customers but posed challenges for value-driven shoppers in Tier II and III cities.

The report indicates that users from Tier II and beyond drive 80% of ecommerce. Meesho’s strategy of targeting these cities, alongside its mass appeal positioning and zero commission model, is fuelling its growth. 

With Bazaar, Amazon can leverage its strong logistics network and brand recognition to compete against Meesho and Shopsy, while potentially lowering product prices through the elimination of seller commissions to enhance competitiveness.

Flipkart and Amazon dominate the ecommerce landscape in India, offering extensive selections across core categories along with fast and dependable delivery services. As of FY23, Flipkart held a 48% market share in India’s ecommerce sector.