Amazon India is set to deliver third-party E-Commerce orders
Amazon is poised to launch its logistics infrastructure in India, meaning that other online retailers can now send their orders straight to Amazon fulfillment centers.
Amazon may be a significant player in eCommerce, but they’re now a direct rival to Delhivery and other new-age logistics and delivery firms. Flipkart recently started delivering non-Flipkart orders, and Amazon is looking to catch up with that innovation.
Called Amazon Shipping, Amazon is integrating D2C brands—which generate higher profit margins, hoping to entice consumers to buy from its marketplace. Ed Tech has seen details of its offer under the company’s program.
Documents shared with the Economic Times, which included an email from a senior Amazon executive on the matter, suggest that “… you may ship orders received by you via own website or social media or any other means,” starting July 1, 2019.
Amazon is expanding its operations in India to cover over 14,000 PIN codes. Amazon’s high levels of customer service should lead to timely deliveries, which will lead to an overall reduction in shipping costs and increased customer satisfaction.
Interestingly, one of the beta customers we interviewed said they’re being billed for the service under Amazon Seller Services – which runs the India marketplace unit.
Amazon’s business in India is increasing. Amazon Transportation Services was responsible for handling the logistics for the company and reported total revenues of Rs 4,581 crore in FY22. This is up 12.6% from the year-ahead period. Losses increased by 38% to Rs 95 crore during this time.
A recent report by Bloomberg mentions that the shipping rates are comparable to what Amazon charges for Marketplace orders. The company is actively promoting it, as seen via the outreach from Amazon executives to sellers.
We’re always working on new ways to support small and medium businesses, and it’s important to us that we’re able to address our customers’ needs. We don’t have any additional details, but we will send you an email when there is news to announce.
One of the most significant changes in the digital shopping age is that customers can buy from third-party sellers and Amazon. They might choose Amazon because it’s less expensive to ship through them. Or they might think it’s safer since they know and trust Amazon. Whatever their reason for choosing, if you want to compete on Amazon, Shiprocket can provide everything you would need, like automated inventory management and customized listings.
While aggregators like Shiprocket are also grabbing market share from traditional players, Delhivery and Xpressbees have succeeded with their D2C (direct-to-consumer) next-day delivery service. The growing popularity of such brands across the country is only increasing.
While the pilot is underway, Amazon has announced that they are expected to make a formal announcement every few months in India. Industry executives and analysts said it would depend on how much Amazon scales the service, but if successful, it could have a more significant impact on existing players.
“Amazon has some of the best technology, logistics, and manpower for every pin code,” Rajat Tuli, a partner at Kearney, said. “It would be easier for them to offer this service.” Brands could tap into Amazon’s network without listing as a seller and without losing consumer data to the marketplace. However, they might impact other companies–depending on how seriously they expand this.
Digital product merchants who sell across online marketplaces still focus on execution.
In April, Ekart is onboarding platforms like Nykaa, FirstCry, and others to help them deliver their packages. For now, Amazon is focused on individual brands and selective logistics aggregators.
Amazon has quietly tested this service in its home market, the US, while it is now available to customers in the UK.