E-commerce major Amazon is quietly starting to offer its transportation and logistics network as a service to third-party merchants, companies, and direct-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.
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 retailer, which has invested over $6.5 billion in India over the last seven years, claims to offer “competitive rates” on shipping and has a dedicated support channel. There is no extra charge for weekend deliveries, and customers are not bound by any contract for a consignment, allowing them to cancel the service at any time.
Partnered with different firms
According to the website, it has partnered with local firms Shiprocket, Unicommerce, Easyecom, Clickpost, and Vinculum for order and delivery management systems.
According to an examination of the archived pages, the company has been testing the service in India for at least a few months.
Local companies like Delhivery, Ecom Express, and even established logistical giants like Blue Dart and India Post may see difficulties if Amazon extends its shipping business. In India, Amazon’s rival Flipkart, which is backed by Walmart, started to allow outside companies access to its logistics network early this year.
Earlier in 2022, 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 an almost “impregnable moat in logistics,” it might now pose a greater threat to competitors like Shopify.
Even though it only serves Amazon, Amazon’s logistics are currently enormous and completely integrated from the fulfilment centre to the doorstep; the logical next step is to open it up to non-Amazon retailers, and that is exactly what is happening, Stratechery’s Ben Thompson wrote earlier this year.
