Amazon Launches Bazaar To Take On Meesho’s Target Audience

Amazon Bazaar

When it comes to non-branded fashion products at affordable prices, Meesho pops up in the mind. But the scenario is going to change as Amazon launches Bazaar! With Bazaar, Amazon is all set to challenge well-established and affordable e-commerce brands like Meesho and Flipkart’s Shopsy. 

Amazon Competes with Meesho

So, without any delay, let’s understand the current landscape where Amazon is aggressively planning to take on Meesho’s target user base!

(A) Story So Far

You know, in 2023, Flipkart was leading the e-commerce race in India with 48% market share. In terms of YOY userbase growth, Flipkart saw 21% growth, followed closely by Meesho at 32%. On the flip side, Amazon was lagging with just 13% of growth.

Meesho’s rise is quite something—it marks a big change in the game. They’ve got this smart zero commission model, where everyday folks can sell stuff without any fees. This really clicks with small-time sellers and folks who love a good deal, especially in smaller Indian cities. Meesho has been quite successful by focusing on these cities, plus they’ve got this mass-appeal vibe going on.

We have already explained Meesho’s business model. Just dive into it for detailed info!

Amazon, on the other hand, started with a high-end approach, aiming the customers of Tier 1 cities who want fancy stuff and lightning-fast delivery. 

But guess what? They missed the memo on the smaller cities and folks who watch their wallets. I mean those living in non-metro cities preferring affordable products over branded ones. 

These smaller cities make up a whopping 80% of the e-commerce market! Plus, Amazon’s fees were pretty high, which made prices soar. So, they kinda lost out on the budget-conscious crowd in India…

But Amazon wasn’t ready to give up! So it launched Bazaar- to target price-sensitive customers!

(B) Amazon launches Bazaar

Amazon vs Flipkart vs Meesho

Amazon has recently rolled out “Amazon Bazaar,” a new platform designed especially for price-conscious shoppers in India. Inspired by Meesho’s success, Amazon Bazaar is all about giving you great deals on a wide range of products, even if those products don’t belong to big brands. This move is set to shake up the online shopping scene across the country.

To get started with Amazon Bazaar, here’s what you need to do-

  • Step 1: Visit the website on your computer or download the Amazon app on your phone.
  • Step 2: Once you’re in, either log in or create a new account.
  • Step 3: Now, start browsing for products as usual.
  • Step 4: Look for the “Bazaar” icon at the top left corner of the Amazon app’s home screen.
  • Step 5: Tap on it, and you’re all set to explore affordable items.
  • Step 6: When you find what you want, just follow the regular steps to make your purchase.

So, how does Bazaar compete with Meesho? Go through the next section, and you’ll find out!

(C) Key Objectives of Amazon Bazaar: How Bazaar will grab Meesho’s Customer Base?

Amazon launches Bazaar (Amazon vs Meesho)

Here’s how Amazon is planning to take on Meesho’s target audience-

(C.1) Targeting Affordability: Attracting Budget-Conscious Shopper

Amazon is setting its sights on a specific group of shoppers who prioritize affordability over brand names. With a strong focus on affordability and an expanded product selection, Amazon Bazaar is looking to capture the attention of consumers in Tier 2 and Tier 3 cities, a demographic it has previously struggled to reach.

This bold move directly challenges platforms like Meesho, known for offering budget-friendly goods from local sellers.

(C.2) Leveling the Field: Amazon Bazaar’s Competitive Edge

By eliminating seller commissions and offering products priced under Rs.600, Amazon Bazaar is gearing up to compete head-on with Meesho and Shopsy in the value-driven market.

(C.3) Leveraging Brand Trust and Logistics

Amazon’s established brand reputation and robust logistics network give it a significant advantage over social commerce platforms like Meesho, setting the stage for intense competition.

(C.4) Key Features of Bazaar: Similar to Meesho

  • Zero Referral Fee: Embracing Meesho’s approach, Amazon Bazaar is introducing a zero referral fee for merchants, reducing selling prices on the platform, and catering to price-sensitive consumers.
  • Affordability Priority: With delivery timelines over two to three days, Amazon Bazaar prioritizes affordability over speed, aligning with the typical Meesho customer demographic in Tier 2 and Tier 3 cities.
  • Android App Integration: Accessible through Amazon India’s Android application, Bazaar welcomes a variety of Indian companies offering cost-effective products. The integrated platform within the Amazon app offers a diverse range of fashion, lifestyle, and home essentials.
  • Diversified Product Range: With a focus on unbranded products, Amazon Bazaar aims to broaden its appeal, challenging the dominance of Meesho and Flipkart’s Shopsy in the value-driven segment.

(C.5) Different Delivery Speeds

Customers who have experienced Amazon Bazaar have noticed that it takes longer for their orders to arrive compared to Amazon’s regular service. Usually, Amazon’s Prime members get their orders in just two days. However, with Bazaar, even Prime members may have to wait 4-5 days, and non-Prime members might have to wait even longer. This delivery setup is similar to how Meesho operates.

When you order from Meesho, it typically takes 4-5 days for your items to reach you, and sometimes, it could even take weeks. Unlike Amazon Prime, there’s no special subscription to speed up the delivery process. But, in some cases, orders might get to you within two days if they’re sent out quickly.

In essence, Amazon Bazaar emerges as a promising avenue for sellers to market fashion and lifestyle products online, without incurring extra charges. This initiative signals Amazon’s commitment to empowering businesses and capturing a significant share of the value-driven market that has been previously dominated by Meesho.

(D) Final Words

Amazon Bazaar

Amazon’s Bazaar is stepping up to compete head-to-head with Meesho, backed by SoftBank, and Flipkart’s Shopsy, targeting customers who prefer affordable options. As e-commerce continues to grow in India, Amazon aims to attract customers looking for products priced at Rs.600 or less. The platform will mainly feature unbranded items like clothing, watches, shoes, jewelry, and luggage below this price range, according to information shared with merchants. 

Currently, Meesho dominates this segment of value customers, as noted by analysts at Bernstein. Amazon India experienced a user growth of only 13% in December 2023, largely due to its focus on premium offerings compared to competitors. 

Note: Do you know the secret behind low-priced products in Meesho? If not, then visit the article – “Why are Meesho products cheap?” 

With the launch of Bazaar, Amazon seeks to capture the Indian value customer segment, especially as demand for mass-market products slows down. This move puts Amazon directly in competition with Meesho, which has been making strides in the budget-friendly e-commerce sector!

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Published By: Supti Nandi
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Nisha Srivastava
Nisha Srivastava
2 months ago

Looking at Amazon popularity and success, it will be interesting to explore it’s new venture.