Amazon Gears Up For Upcoming Festivities, Invests In 7 New Fulfilment Centres

Ecommerce marketplace Amazon India has announced its investment in seven new Fulfilment Centres (FCs) across different cities in India.

Currently, Amazon has 20 fulfilment centres operating across 10 states in India covering a total area of over 1.6 Mn square feet with a storage capacity of nearly 4 Mn cubic feet.

Amazon has increased its number of FCs in order to meet growing needs of seller base in the country. The new fulfilment centres are opened in Ahmedabad, Delhi, Kolkata, Nagpur, Gurgaon, Pune and Mumbai.

Presently, over 1 Mn products are available for immediate shipping through the network of Amazon’s FCs in India.

Amazon’s Fulfilment Centres are warehouses where online retailers, who use Fulfillment by Amazon (FBA) services, stock their inventory.

Through the new fulfilment centres, Amazon India aims to offer fulfilment by Amazon (FBA) service to thousands of SME business. It will empower them to gain access to and service customers across the country at significantly low operating costs. Amazon targets at faster and quicker delivery of products with respect to its competitors.

Amazon India’s Vice President and Country Manager, Amit Agarwal, said, “Sellers on our marketplace have been witnessing exponential growth with overall volume growth exceeding 500% in the last quarter. This is largely powered by our Fulfilled Amazon service contributing more than 75% of total units. We remain committed to investing in our fulfillment and logistics capability to enable and empower sellers to serve customers nationally at lower costs and increase sales.”

Earlier in March this year, Amazon had set up its logistics company “Amazon Transportation Services Private Limited (ATSL)” in the country to manage last mile delivery for faster shipping of products.

In an ET report, ecommerce biggies viz Flipkart, Snapdeal and Amazon along with smaller startups are expected to spend more than $300 Mn (INR 2,000 Cr) in four months around Diwali.

Akhil Saxena, Director, Operations at Amazon India emphasised that the investment in fulfilment infrastructure is deliberately done before the upcoming festive season. This is to ensure that thousands of sellers take advantage of Amazon’s FBA services and grow exponentially during country’s biggest shopping season.

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