India to get 6 more Amazon fulfilment centres
TNN | Jul 8, 2016, 06.05 AM IST
BENGALURU: Amazon will open six new fulfilment centres (FCs) across the country after its founder Jeff Bezos said the company was allocating another $3 billion to its Indian operations.
The new FCs will be set up in Chennai, Coimbatore, Delhi, Jaipur and Mumbai, taking the total number to 26 across 10 states in India. Amazon’s rival Flipkart has 17 fulfilment centres with warehousing capacity of about 5.5 million cubic feet.
The move from Amazon comes at a time when the US e-tailer has been aggressively pumping in capital to win the India market as it competes with home-grown rivals Flipkart and Snapdeal. For Amazon, winning India is vital after losing out to Alibaba in China. The Seattle-based online retailer has committed $5 billion, including the recent announcement for the local market.
According to the company, the new FCs will enhance its network in the country and will help it prepare for the upcoming festive season sales. “The FCs will allow Amazon.in to offer its ‘Fulfilment’ by Amazon services to several thousand more small and medium businesses… in these states and empower them to gain access to and service customers across the country at significantly low operating costs,” the company said in a statement.
Akhil Saxena, VP, India customer fulfilment, Amazon India, said, “We remain committed to investing in our fulfilment and logistics capabilities to enable and empower sellers to serve customers nationally at lower costs.”
At present, the company claims to have about 55 million products on its marketplace while 1.3 million products, via the FCs, are ready for next day or same-day delivery. Amazon’s existing FCs are spread across Gujarat, Haryana, Karnataka, Maharashtra, Delhi, Punjab, Rajasthan, Tamil Nadu, Telangana and West Bengal.