Amazon beginning to start the new vertical, offer its transportation and logistics network as a service to third-party merchants, businesses and direct-to-consumer (D2C) brands in India, logistics aggregators and other businesses tapping in its large delivery chain to drive revenue in the key overseas market as the e-commerce group attempts to replicate a model it has been testing in the U.S. for several months.

Amazon Investment

Global Ecommerce giant, Amazon has invested INR 375Cr in its Indian subsidiary, commitment to its expansion in the country. The service, called Amazon Shipping, offers extensive reach and the highest reliability – all at the lowest logistics cost, Amazon shipping will pick up parcels 7 days a week, and deliver them to its customers.

Amazon Transportation services showed that the investment came from Singapore-based Amazon Corporate Holdings and Mauritius-based Amazon.com.inc. The investment was occurred on June 16th and a total of 37.50 Lakh equity shares were allotted at INR 10 apiece. Amazon Corporate was allotted 37,49,99,396 shares whilst Amazon.com.inc was allotted 604 shares. 

The Amazon retailer, has invested more than $6.5 billion in India over the past seven years, says that it offer shipping at “competitive rates” and includes a dedicated support channel. The company added that there’s no additional fee for deliveries on weekends and customers will not be tied to any contract for a consignment, allowing them to cancel the service any time the customer wish.

Amazon Logistics Network

The Amazon company says that it has partnered with local firms Shiprocket, Unicommerce, Easyecom, Clickpost and Vinculum for order and delivery management systems. It has been testing the service from past few months in India. Amazon shipping covers all products other than dangerous and hazardous goods. It currently offers the ground mode of deliveries and restricts the number of shipments items to 99 per order.

Amazon expands the shipping service, it may become a problem to local firms including Delivery, Ecom Express and even legacy logistics giants including Blue Dart and India Post. Meanwhile, Flipkart, the Walmart-backed rival of Amazon India. Amazon also began its transportation and logistics network to third party firms earlier this year.

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