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This move could also mean that large companies like Mamaearth, Boat and others, who get a bulk of their sales from e-commerce marketplaces like Amazon, will be subject to higher seller fee.
This strategic move by Amazon is seen as a direct response to the success of platforms like Meesho, which has gained considerable traction in the budget-friendly segment. Meesho, backed by SoftBank, does not charge sellers for listing products and instead generates revenue through advertisements and shipping assistance. - Newsx
Amazon plans to wheel cart down value aisle, mirror Meesho model in fashion, lifestyle categories to tap value customers. It competes with Meesho, Flipkart's Shopsy, and Reliance Industries' Ajio Street, while also facing competition from Shein, Temu, and Pinduoduo in its home market.
Amazon is launching a new vertical featuring low-priced, unbranded fashion and lifestyle products, people aware of the matter said. The US ecommerce giant is looking to aggressively woo the Indian value customer, as demand for mass market products tapers and its own growth loses pace.
In January, a report from research firm Bernstein showed that Amazon India's user growth was only 13 percent in December 2023, primarily due to its more premium offerings compared to its peers.