Reliance Ajio to launch zero commission marketplace: Report
The company’s new launch, Ajio Street, promises merchants a 15-day payment settlement. The initiative is targeted toward consumers in Tier II cities and beyond.
Reliance Industries' online fashion retail platform AJIO is in the advanced stages of setting up a new marketplace, which will work on a zero-commission model, for low-priced fashion items.
The company’s new launch, Ajio Street, promises merchants a 15-day payment settlement, as reported by The Economic Times.
It further added that Ajio Street is likely to have a room on the AJIO platform and app, offering affordable value products aimed mainly at non-metro consumers in Tier II and IV cities and towns. So far, AJIO’s core market has been metro cities where it primarily sells branded apparel, shoes, and other products.
AJIO hopes to increase its user base with its zero-commission model by onboarding a new set of consumers from these markets who may not be shopping online frequently. In this model, sellers do not have to pay a commission to a platform. Though it is unclear how AJIO plans to monetise the vertical.
With this platform, Reliance AJIO will be in direct competition with SoftBank and Fidelity-backed e-tailer Meesho, which specialises in low-cost longtail fashion and accessories as well.
According to industry experts, AJIO has a GMV (gross merchandise value) of around $2 billion at the end of 2022.
During its December quarter earnings, the company said it had expanded its customer base by 33% and its catalogue size by 62% year-on-year.
Edited by Affirunisa Kankudti