Amazon opens its logistics network to third-party merchants in India

Amazon first entered the Indian market through the price comparison website Junglee back in 2012. It unveiled its marketplace platform a year later. Amazon has been running six businesses ever since they put Junglee on hold in 2017: Amazon Marketplace, Amazon Internet (AWS), Amazon Wholesale, Amazon Data, Amazon Pay, and Amazon Retail.

These six companies have expanded quickly over the years, and their combined revenue in the fiscal year ending in March 2022 (FY22) increased by 36% over the prior year to $5.56 billion (Rs 42,260 crore). Amazon is starting to offer its transportation and logistics network as a service to third-party merchants, companies, and immediate to consumer brands in India. The e-commerce company is trying to replicate a model it has been testing in the U.S. by utilising its extensive delivery network to drive revenue in the important international market.

The store claims to offer delivery at cheap rates and to have a dedicated service channel. Over the previous seven years, it has invested over $6.5 billion in India. Weekend deliveries are free, and consumers are not bound by a consignment contract, so they are free to revoke the service at any time.

According to the company’s website, the service, known as Amazon Shipping, promises wide reach and the finest reliability – all at the lowest logistics cost.  The company states that Amazon Shipping will pick up your packages seven days a week and deliver them to your consumers.

The store claims to offer delivery at cheap rates and to have a dedicated service channel. Over the previous seven years, it has invested over $6.5 billion in India. Weekend deliveries are free, and consumers are not bound by a consignment contract, so they are free to revoke the service at any time.

According to the website, it has worked with regional companies Shiprocket, Unicommerce, Easyecom, Click post, and Vinculum for order and delivery management systems. Amazon is said to be covering over 14,000 PIN codes in India.

Earlier this year, Amazon launched a programme called Buy with Prime in the United States that allowed third-party merchants access to its logistics network. Analysts claim that because Amazon has created a heavily reinforced logistical model, it may now pose a stronger challenge to competitors like Shopify.

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