Soon after adding 15 fulfilment centres for Amazon Now, Amazon India has now added six new specialised fulfilment centres in Coimbatore, Pune, Lucknow, Gurugram, Mumbai and Bhopal and 25 additional delivery stations exclusively for the fulfilment of large appliances and furniture.
Amazon India has also expanded its existing storage capacity in Bengaluru, Hyderabad, Kolkata, Ludhiana and Ahmedabad. In a media statement, the company claimed that it has over 5,000 products across brands in the large appliances category, consisting of air conditioners, air coolers, refrigerators, washing Machines and TVs and over 1 Mn products covering the entire home furniture range including products for bedroom, living room, dining room, kitchen, home office, and hallway.
Commenting on the development, Akhil Saxena, Vice President, India Customer Fulfilment, Amazon India said, “Our investments in this specialised network will allow us to come closer to customers and offer faster delivery of large appliances and furniture. We have doubled our storage space, delivery station network and cities, we deliver in just this one year to support the growth of these categories.”
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He also claimed that Amazon now has 62 fulfilment centres with a storage capacity of 18.5 Mn cubic feet. With this expansion, Amazon plans to ensure that customers in 30 cities are now able to avail next day and scheduled-delivery services for these categories.
On the expansion, Suchit Subhas, Category Leader-Appliances, Amazon India said, “Our investments in infrastructure, installation services and sound finance options have led to changes in customer behaviour and adoption of online shopping for large appliances and furniture. Customers can find a wide selection on Amazon.in, each with detailed product descriptions, virtual guides and a toll-free helpline for a seamless experience.”
This comes at a time when Amazon has become the first foreign venture to explore the food retail market in India. The company received the final nod from the government in July 2017 to invest $500 Mn in its Indian food retail business.
On the other hand, the company’s Indian rival Flipkart announced that it is planning to set up a 4.5 Mn square feet state-of-the-art logistics park in Bengaluru.
This logistics park will house several Flipkart fulfilment centres, improve supply chain efficiency and reduce costs by deploying mechanised warehousing, acting as a freight aggregation and distribution hub, and by leveraging technology for intelligent transport systems.
As Amazon focusses on expanding its fulfilment centres, companies like arch nemesis Flipkart have decided to explore different ways to ensure better logistics services and get ahead in the business. It remains to be seen how Amazon India decides to challenge such centres with its 62 fulfilment centres.