Tuesday, 24 March 2015

Amazon starts logistics company in India source TOI

NEW DELHI: Amazon has set up a logistics company in India to deliver products directly to consumers, opening a new front in the battle for top honours in the country's fast-growing online retail industry.

Amazon Transportation Services Private Limited, a subsidiary of US-based Amazon, will ship goods from sellers who transact on the company's online marketplace in India. Such a service is already on offer from Flipkart through logistics company eKart, and Snapdeal, which bought a stake in delivery firm Gojavas last week.

"We want to change how India shops," said Samuel Augustine Thomas, director of transportation for Amazon in India. "The logistics arm has been set up to aid in last-mile delivery as products can be shipped faster," he said. Products sold on the Amazon marketplace are now shipped to some 19,000 pin codes across the country.

ATSL will be one of the logistics partners for Amazon's Indian marketplace.

The company's Indian marketplace expects to sell goods worth over Rs 12,000 crore ($2 billion) this fiscal. The company will continue to work with other partners including India Post and courier companies like Gati, Blue Dart and DHL.

Experts are of the view that "last-mile delivery" will increasingly be a crucial front in the war for leadership in India's e-commerce industry, which is expected to be worth $43 billion (Rs 2.5 lakh crore) by 2018.

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