Paytm launched its online shopping app, Paytm Mall, at the end of February. This move was intended to improve the online retail experience on its platform. Alibaba is a major investor in this project and assists the etailer to take on the ecommerce trinity – Flipkart, Amazon and Snapdeal.
To make sure Paytm Mall is a hit with customers, the online marketplace has introduced same-day delivery and large appliance installation services across 20 cities. These facilities are also expected to make the most of high margins and prices offered by the segment. To fulfil timely orders, Paytm Mall has teamed up with brands, distributors and multi-brand stores.
Paytm Mall’s secret to efficiency is local sellers
According to Amit Bagaria, the Paytm Mall Vice President, brand-led tie-ups with local merchants has allowed –
- High availability
- Fast deliveries
- Smooth installation at nominal rates
- Growth for local vendors
Around 80% of the platform’s orders are fulfilled by local sellers. This makes it easier to deliver and install large appliances in no time and at a decent rate too. Those selling on the platform are also provided with insights and analytics to help them better the supply chain even further.
Bagaria also said, “The upcoming summer has meant an increase in sales of air conditioners that has been further boosted by easy deliveries and installation services offered on our platform.”
This segment has a sales team of 500 which will make it easy to scale these services in 50 cities through partnerships with local merchants.
Paytm Mall does not maintain stock of inventory; it is a pure play marketplace. It processes intra-city orders from nearest brands, retailers or business partners.
When it comes to fulfilment, Bagaria said, “For fulfilment, we have a massive network of 40-plus service partners to handle logistics. Our partners like Blue Dart, Delhivery and Xpress Bees have specialised services for local deliveries with correct handling and shorter delivery times.”
Amazon and Flipkart have also invested in large appliance installation, developing specialised warehouses and distribution centres. This means Paytm is on the right track and should be able to catch up with the leaders of ecommerce soon enough.