Amazon Fashion announces first sale event after new FDI rules

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Amazon Fashion on Friday announced the launch of its first sale event after the introduction of the new e-commerce regulations that ban marketplaces from influencing product prices.

In March, the government allowed 100% foreign direct investment (FDI) in online retail of goods and services under the so-called marketplace model but barred marketplaces from influencing pricing of products and services on their platforms, directly or indirectly.

This brought immense pressure on marketplaces which had to suspend their sale events in April.

While marketplaces such as Snapdeal, Flipkart and Amazon India continued to fund discounts purportedly given by third-party sellers on their sites, they cancelled planned sale events and accompanying advertisements to avoid potential punishment from regulators, Mint reported on 28 April.

While Flipkart has held one smartphone sale since the new regulations were announced, this will be Amazon’s first sale event post the regulation announcement.

The app-only event will be called the Amazon Fashion Bash and will witness participation from close to 30 brands such as Jockey, Arrow, Levi’s, Skechers, Crocs, Provogue, Timex, Wildcraft, Sparx and Idee, the company said in a statement on Friday.

Beginning Friday it will continue till June 22 and will offer fashion merchandise starting for as low as Re 1. For Re 1 merchandise, there will be a contest called Treasure Hunt which will be hosted between 11 am and 2 pm everyday across categories such as accessories, apparels and shoes.

“As the app increasingly becomes an important channel for Amazon Fashion, we will continue to drive our mobile-first strategy to make our wide selection of fashion products easily accessible to consumers,” said Mayank Shivam, category leader, Amazon Fashion India.

“One in every three purchases made on the Amazon Fashion store is on mobile. Our dedicated fashion event is being hosted on the back of the massive growth momentum we have been seeing on the app. Our aim is to reach out to our customers wherever they are and this is one of our many initiatives planned to continue to delight our customers,” he added.

Amazon Fashion is among the top three stores on Amazon.in. It has more than 15,000 brands and over two million fashion products across categories like handbags, children’s apparel, watches, fashion and precious jewellery.

Amazon.in is operated by Amazon Seller Services Pvt. Ltd, an affiliate of Amazon.com, Inc.

Earlier this month, Amazon.com Inc. announced an additional investment of $3 billion in India.