Amazon is gearing up to deal with the sales rush for Diwali by adding to its warehouse space. The leading American ecommerce company has opened six new fulfillment centres at Coimbatore, Delhi, Jaipur, Chennai, and Mumbai. In a press release, the company stated that it has the largest storage space in India as an ecommerce company. The fulfilment centres will enable small and medium enterprises to reach customers across the country.
Akhil Saxena, Vice President, India Customer Fulfilment at Amazon India, said,
“With the exponential growth of online shopping in India, we are glad to announce 6 new Fulfilment Centres in India. We remain committed to investing in our fulfilment and logistics capability to enable and empower sellers to serve customers nationally at lower costs. It stands testament to our larger commitment of making deep investments in the country and in turn creating opportunities for employment, growth and revenue generation for the Government.”
The company claims that 80% of its sellers opt for Fulfilled By Amazon (FBA) services.
Amazon versus Flipkart, Snapdeal
Amazon is locked in fierce battle with Indian ecommerce companies Flipkart and Snapdeal in a power struggle. The expansion of its warehouse capacity is a means to reach shoppers faster during the festive rush. The company seems to be on track based on the NPS index, and increased traffic to its site (compared to Flipkart).
Amazon is working on smoothing its service to attain and retain the top spot. The company is concentrating on features including same day delivery, Sunday delivery and COD. Flipkart’s recent spate of misfortune (or wrong choices and actions including increasing seller commission) might just be giving Amazon the crack in the door.
Seller baiting
The company has said that its seller number has gone up by 250% year on year. In a sly move, the company reduced its commission rates around the same time Flipkart increased them. A recent study also shows that Amazon is the preferred site for online sellers. The company seems to be finding a balance between keeping its customers and its sellers happy, a tough feat for anyone. This might just make things more difficult for its contenders.
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