Business

Amazon scales delivery network ahead of festive season

Representational Image | Photo Credit: BCCL

Amazon India said it has added close to 200 delivery stations, including those operated by its partners, as it hopes to increase its reach ahead of the festive season.

The e-commerce giant said it has also expanded its I Have Space program to over 28,000 neighbourhood and kirana stores in 350 cities. Under this, Amazon India partners with local store owners to deliver products to customers within a 2 to 4 kilometres radius of their store.   

“The recent expansion of our delivery programs has collectively furthered Amazon India’s goal to improve reach and provide a fast, safe and more seamless e-commerce experience ahead of the festive season. Our goal is to ensure customers across the country are able to get what they desire this festive season from the comfort of their home while prioritizing the safety of both our customers and delivery partners. We have worked hard to prepare our delivery network to enable safe, no-contact deliveries from all parts of the country,” said Prakash Rochlani, Director, Last Mile Operations, Amazon India.

Amazon said it has close to 250 Amazon-operated and more than 1,500 partner delivery stations run by more than 280 entrepreneurs across India to enable deliveries across the country.  

Competition is expected to heat up in the coming weeks as Amazon goes head to head with Walmart-owned Flipkart and Reliance’s JioMart. 

E-commerce companies are likely to see a 50% jump in gross sales to reach $4 Billion this Diwali on the back of massive online adoption post-COVID-19. Market Research firm RedSeer expects the entire festive month to clock gross sales of $7 Billion in 2020, a jump of 75% compared to a year ago. 

According to data from RedSeer, gross sales for Diwali is expected to grow 50% YoY over CY19 to reach $4 bn, a 2-year high. The entire festive month is expected to clock gross sales of $7 billion vs $4 billion last year. There is likely to be a 70% jump in consumers with 45-50 mn digital shoppers. 50% of new shoppers likely to come from Tier-2 cities.   

The key drivers include a COVID driven massive online adoption of Bharat customers, rise of new shopping models including video-based and WhatsApp based shopping, nationalist sentiment coupled with government’s Atmanirbhar policy that is expected to impact the brand mix in categories like electronics/mobile. Other drivers include some share of organized retail that will go to online platforms and Jio, which is expected to have a moderate impact, given its limited exposure to electronics.   

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