Amazon India adds more fulfilment centres to reduce delivery time

Amazon India mentioned its fulfilment centre (FC) house has grown by a 3rd to 43 million cubic toes of storage because the pandemic begun three years in the past. Company’s final mile shops the place it ties up with native distributors have additionally elevated by a fifth in its effort to succeed in nearer to prospects.

Opening extra fulfilment centres helps firm in lowering the time taken between ordering and supply, Abhijit Borkar, Zonal Director North FC, Amazon India advised ET.

“We are investing in speed. We look at three of our customers — buyers, sellers, and our associates — and try to go as close as possible to them. We have launched more FCs so that the inventory is closer to the customer,” mentioned Borkar.

Amazon India has over 28,000 ‘I have space’ shops operational in India throughout 420 cities and cities in tie up with native distributors to enhance supply velocity.

“One in three of our metro orders this Prime Day (Amazon’s annual sale) were delivered even before the Prime Day was over. And one in two of our tier one and tier two city orders were delivered in two days. For same day delivery, we have been able to increase success rate by 65% in this prime day,” mentioned Borkar.

In the Delhi-NCR area, Amazon has 10 fulfilment centres with about 3 million cubic toes of storage capability. “As the business is dynamic, the demand goes up and down. So basis that the capacity utilization also keeps changing. Whatever indications come from our customers, we adjust our network accordingly,” mentioned Borkar.

According to PwC world client insights pulse survey launched just lately, 65% of customers intend to extend their on-line procuring within the subsequent 6 months, with the bulk anticipating no change to their procuring channel behaviour. Loads of ecommerce demand can also be coming from tier 2 and three cities and Amazon is assembly these calls for from the present centres. On enlargement to smaller cities, Amazon government mentioned that all of it will depend on buyer demand. “It’s a very dynamic thing every year. We look at our topology, our network design goes through a revision and then basis that we take the decisions which are in the best interest of our buyers and sellers and associates,” he mentioned.

Amazon additionally has two devoted freight plane to allow sooner supply inside India.

“Amazon has its own two planes and they are flying across four metros, Delhi, Mumbai, Hyderabad and Bangalore. These are cargo planes and this has been one of the technology innovations which we have launched in India, which has helped us to improve our speeds for our customers,” Borkar mentioned.

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