Amazon plans to introduce a vertical for orders less Rs 600 in order to further expand into the value consumer category

Amazon plans to introduce a vertical for orders less Rs 600 in order to further expand into the value consumer category

Because of its more expensive products than its competitors, Amazon India's user growth was just 13% in December 2023, according to a January study by research company Bernstein.

Right now, Amazon Marketplace offers lifestyle items for less than Rs 600.

According to persons familiar with the situation, Amazon is establishing a new vertical called Amazon Marketplace to offer consumers low-cost, non-branded fashion and leisure items.

Right now, Amazon Marketplace is enticing vendors to sign up and offer non-branded goods under Rs 600, such as clothing, accessories, jewellery, watches, shoes, and watches. Reviewing the company's correspondence with traders is The Economic Times.

With the slowing demand for items in the mass market, the move is an effort to reach the Indian value client group.

competitive stance

Amazon is joining the party late, while Meesho and Shopify from Flipkart have already established strong positions in the market. The Mukesh Ambani-led Reliance Industries is also developing an inexpensive platform known as Ajio Street.

It is noteworthy that Amazon does not charge merchants for referrals, especially for items with low average selling prices (ASPs). Meesho, for instance, enables vendors to profit from shipping and advertising services.operates on a commission-free approach. Meesho does not, however, own or run a warehouse or shipping company, in contrast to Amazon and Flipkart.

Amazon Fashion has not been as successful in India as Myntra, according to Satish Meena, an independent e-commerce analyst and consultant at Datum Intelligence. Meena views Amazon Fashion as just another effort to dominate the industry.

Because of its more expensive products than its competitors, Amazon India's user growth was just 13% in December 2023, according to a January study by research company Bernstein.

Conversely, over the same time frame, Meesho and Flipkart saw increases in user counts of 32% and 21%, respectively.