Amazon To Start Open To All New Logistics Vertical ‘Amazon Shipping’

Amazon Now To Shut Down Its Distribution Unit In India After Edtech, Food Delivery

SUMMARY

To start the new vertical, the company has tapped direct-to-consumer (D2C) brands, logistics aggregators and other businesses

The customers who are using beta services of this new vertical are being charged under Amazon Seller Services

Amazon had infused INR 375 Cr in its Indian logistics subsidiary Amazon Transportation Services earlier this year

Ecommerce giant Amazon is set to make a debut in the logistics business in India by delivering non-Amazon orders with a new vertical called Amazon Shipping.

To start the new vertical, the company has tapped direct-to-consumer (D2C) brands, logistics aggregators and other businesses who take direct orders from consumers, ET reported.

The customers who are using beta services of the newly launched verticals are being charged under Amazon Seller Services, as per one of the customers cited in the report.

“The shipping rates being offered are similar to what an Amazon merchant will be given for the marketplace orders. Over the last few weeks, the outreach is more consistent from Amazon executives and this is being promoted actively,” a source said as quoted in the report.

Interestingly, the company had infused INR 375 Cr in its Indian logistics subsidiary Amazon Transportation Services (ATS) through its Singapore entity, Amazon Corporate and Mauritius entity and Amazon.com.incs Ltd earlier this year.

ATS reported a 12.6% increase in its total revenues to INR 4,581 Cr in FY22. Its losses increased by 38% to INR 95 Cr in the financial year.

“We’re always working to develop new, innovative ways to support small and medium businesses and serve our customers. However, at this point we don’t have any additional details to share,” an Amazon spokesperson told ET.

The company may make a formal announcement for its new vertical over the next couple of months in India.

Amazon’s archrival Flipkart also extended its logistics arm eKart’s services to small, medium and large (SMB) businesses and other brands earlier this year. Earlier, it had limited eKart’s services to its own operations.

Hence, the ecommerce giant’s upcoming vertical will be in direct competition with Flipkart’s eKart, along with other players such as Delhivery, Ecom Express, ShipRocket and Xpressbees.

According to Inc42’s August 2022 report on, “The State Of Indian Startup Ecosystem”, the overall intercity road logistics market in India is poised to be worth $299 Bn by 2025. Around 63% of the total demand is poised to be from on-demand intercity logistics.