Ajio, Reliance Industries’ online fashion retail platform is in the advanced stages of setting up a new marketplace for low-priced fashion items which will work on a zero-commission model.
Leading business daily The Economic Times has reported that the new proposition from Reliance is called Ajio Street and merchants are being asked to onboard the platform with a promise of a 15-day payment settlement.
In a zero commission model, sellers do not have to pay any commission to a platform and e-commerce platforms try to generate money through either ads or via fulfilment services. So far it is not clear how exactly Ajio plans to monetise the vertical, but as per sources the idea is to scale this business and acquire new users.
SoftBank and Fidelity-backed e-tailer Meesho are already following this modal.
It is being said that Ajio Street is likely to have a separate space on the Ajio platform and app, offering affordable value products mainly aimed at non-metro consumers in tier II-tier IV cities and towns.
It is also hoping the zero-commission model can increase its user base by tapping into the new set of consumers from these markets who may not be shopping online frequently.