Amazon plans to open six new Fulfilment Centres (FCs) in India to meet the growing needs of its fast-growing seller base in the country as part of its recently-announced $3 billion medium-term investment.
New FCs will be set up in Chennai, Coimbatore, Delhi, Jaipur and Mumbai further expanding the company’s presence in India and in preparation for the upcoming festive season, the company announced yesterday.
The company already has 21 fulfilment centres in the states of Gujarat, Haryana, Karnataka, Maharashtra, Delhi, Punjab, Rajasthan, Tamil Nadu, Telangana and West Bengal.
Amazon CEO Jeff Bezos announced the $3 billion investment in India in early June at a meeting with Indian prime minister Narenda Modi in Washington.
With the launch of these new FCs, Amazon.in continues to have the largest storage space for an e-commerce company in India with its FCs operational across 10 states covering a total area of close to 2.5 million square feet with a 1.5X growth in storage capacity which is 7.5 million cubic feet of space.
The FCs will allow Amazon.in to offer its Fulfilment by Amazon (FBA) service to several thousand more small & medium businesses in these states and empower them to gain access to and service customers across the country at significantly low operating costs. Over 80% of sellers on Amazon.in currently use its fulfilment services.
“With the exponential growth of online shopping in India, we are glad to announce 6 new Fulfilment Centres in India. We remain committed to investing in our fulfilment and logistics capability to enable and empower sellers to serve customers nationally at lower costs. It stands testament to our larger commitment of making deep investments in the country and in turn creating opportunities for employment, growth and revenue generation for the government,” said Akhil Saxena, Vice President, India Customer Fulfilment, Amazon India.
Today, over 1.3 million products are available for immediate shipping through the network of Amazon’s FCs in India. This selection will only increase with the expanding FC footprint and benefit sellers and customers alike.
Saxena added: “At the same time, Fulfilment Centres fulfil important needs of small and medium enterprises seeking markets and customers located all over India and lacking resources to create their captive distribution networks; local entrepreneurs seeking opportunities to provide goods and services; qualified and educated young workforce in remote and rural areas seeking employment and skill development. Apart from these benefits, the FC will also enable faster and quicker delivery of products to consumers across the region” he added.
Amazon has created one of the most advanced fulfilment networks in the world and sellers in India have been benefitting from Amazon’s expertise in fulfillment, reliable nationwide delivery and customer service. When using Fulfilment By Amazon (FBA), sellers across India send their products to Amazon’s FCs and once an order is placed, Amazon picks, packs and ships the order to the customer, provides customer service and manages returns on behalf of the sellers. Orders fulfilled by Amazon are eligible for Cash on Delivery, Guaranteed Next-Day, Same Day, Release Day and Sunday delivery.
Sellers save money by replacing their upfront capital expense with low variable cost and pay only for the storage space they use and the orders that Amazon fulfils. Sellers always have the flexibility to choose the number of products they want to have fulfilled by Amazon and scale according to their business requirements.
The Amazon.in marketplace is operated by Amazon Seller Services Private Ltd, an affiliate of Amazon.com, Inc.
