In India, Amazon is quietly beginning to make its transportation and logistics network available as a service to other retailers, businesses, and direct-to-consumer brands. By utilising its enormous distribution network to generate money in the significant international market, the e-commerce giant is attempting to mimic a model it has been testing in the U.S.
The delivery of orders from websites other than Flipkart is now being accepted by Xpressbees, Ecom Express, and Flipkart's Ekart. Utilizing India's 4,000 PIN numbers and offering "great service levels" will result in on-time performance while cutting "total logistic cost and increasing customer experience." Orders that you get through your own website, social media, or another medium.
The local shipping business of the US e-commerce giant brought in a total of Rs. 4,581 crore. FY22, a growth of 12.6% from the same time last year. Losses increased by 38% at Rs 95 crore in FY22. Amazon offers the best manpower (for THE pin code) and technology (for logistics). Because of this, it is straightforward for brands and transportation companies to join the Amazon network without having to register as sellers and protect the privacy of their consumer data. In the UK, Amazon has made the service accessible.
Amazon's foray into third-party ecommerce occurs at a time when the industry is experiencing dramatic changes brought on by traditional as well as cutting-edge aggregators like Shiprocket and others, including M&A to offer full-stack services.
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Source: The Economic Times & Amicus Analysis