Amazon Betting Big On Logistic Solution For Enrolled Sellers – ZMR Blog
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Amazon Betting Big On Logistic Solution For Enrolled Sellers

Amazon Betting Big On Logistic Solution For Enrolled Sellers

The US-based Amazon is planning a big bash in terms of logistics business expansion. The e-commerce giant is betting hard on the delivery operation irrespective of the order source, may it be from its own platform or not.
The company is spreading its logistics business specifically in India by providing service to its registered sellers. The service will be applicable even if the orders are confirmed through its rivals such as Snapdeal and Flipkart or for their offline delivery.

Amazon is also in plans to enter the food delivery sector and compete with the existing players such as Swiggy. It had also shown interest to purchase the food delivery startup, Swiggy and is in talks with other food tech start-ups as well.
Logistic Solution
The company has already initiated its plan by piloting its logistic services along with 300 sellers thatare enrolled in its marketplace, said some executives who are aware about the plans. The logistic service of the company is also taken by Amazon Transportation Services (ATS).
The strategy of the e-commerce giant is to take the charge of the bigger part of the Indian e-commerce market. Amazon Transportation Services (ATS) was majorly dealing with the FBA (Fulfilled by Amazon) orders. It is the scenario in which the seller stores its products in warehouses assigned by the Amazon from where it is further packed and shipped to the customers.
One of executives said, “Amazon is in intention to transform ATS into an independent logistic service that can compete Flipkart’s Ekart and other existing players such as Blue Dart and FedEx. At present, it has started operating with its registered sellers, but in due course, it will expand its offerings to brands and other businesses. Amazon’s ATS has also recruited executives from renowned logistics and courier companies.
The e-commerce fetches a noteworthy investment and assessment for Indian logistic sector and has turned out to be an important driver for the logistic sector. The logistic sector respective to online retail industry was valued at $0.46 Billion in the previous year in India and it is expected to grow drastically in the coming years.
Amazon’s rival Flipkart is also in a move to tap the opportunities of offline network and give tough competition to the established players such as Blue Dart and DTDC through its logistic arm Ekart.

Coming onto the conclusion, this move is expected to create more opportunities in Indian logistic market respective to growth.

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