E-commerce major Amazon India has launched a new vertical called Bazaar, which features unbranded fashion and lifestyle products at a low price point. The segment went live on Amazon India’s Android app.

With Bazaar, the e-commerce player will tap customers in the Rs 600-and-under vertical as e-commerce penetration picks up in the country. The platform will largely sell unbranded products, including apparel, watches, shoes, jewellery, and luggage priced below Rs 600, the company had told merchants earlier.

So far, Amazon India is more popular among urban users who are also Prime subscribers, which offers faster deliveries along with video and music streaming. Amazon is looking to tap into this cohort to expand its base.

With Bazaar, Amazon looks to capture the Indian value customer segment, as demand for mass-market products slows. 

“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 in response to businessline queries.

The latest move to launch Amazon Bazaar pits it directly against SoftBank-backed Meesho, which has been gaining ground in the low-cost e-commerce space. Flipkart runs a separate app for similar offerings under Shopsy. Bazaar will potentially open up an avenue for Amazon to acquire new customers in India.

Currently, this cohort of value customers is dominated by Meesho, as per analysts at Bernstein. Bernstein said Amazon India clocked only 13% user growth in December 2023 — primarily due to more premium offerings than peers.