Amazon is quietly beginning to offer its transportation and logistics network as a service to third-party merchants, businesses and direct-to-consumer brands in India, using its large delivery chain to drive revenue in the key overseas market.
The service, called Amazon Shipping, is described on the company's website as being at the lowest costs. Amazon Shipping will deliver your parcels 7 days a week.
The retailer, which has poured over $6.5 billion in India over the past seven years, has a dedicated support channel. Customers are able to cancel the service at any time, and there is no additional fee for delivery on weekends.
The site says it has partnerships with several firms for order and delivery management. An analysis of the archives shows that the company has been testing the service in India.
Local firms such as Delhivery, Ecom Express, Blue Dart and India Post may be affected by Amazon's expansion of the Shipping service. The Walmart-backed rival of Amazon in India began to open its logistics network to third-party firms.
The Economic Times of India reported that Amazon Shipping covers all types of products other than dangerous and hazardous items. The number of shipments to 99 per order is offered on the policy page.
Amazon opened its logistics network to third-party merchants in the US earlier this year. Analysts say that Amazon can pose a greater challenge to other companies because it has built a very strong logistics business.
Even though it only serves Amazon, the obvious next step is opening it up to non-Amazon retailers, and that is what is happening.
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