Amazon sets up its own logistics service in India

Pooja Vishant | Sep 10, 2020

Last week, we talked about the new point of competition between the ecommerce players – logistics. We talked how Snapdeal and Flipkart seem to be battling out the ‘Express Delivery’ war.

Looks like Amazon felt left out. If the latest on the ecommerce block is to be believed, Amazon has set up its own logistics arm in India. A subsidiary of US- based, Amazon Transportation Services Private Limited (ATSL) will ship products of sellers who sell through the ecommerce giant’s platform.

“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. Currently, Amazon caters to around 19,000 pin codes in the country.

ATSL – Exclusive logistics provider?

ATSL be one of the logistics providers of Amazon, while it will continue to use the services of its previous partners like Gati, Blue Dart, DHL etc.

Last mile delivery is a crucial aspect of the ecommerce logistics chain which could be the reason why major players are developing their own services for the same. “All large marketplaces have opened their own last-mile logistics arms in India as the capability to deliver goods next day doesn’t exist in India’s logistics sector,” said Ankur Bisen, senior VP at retail consulting firm Technopak.

Also, once operational, the same services can be extended to other parties including competitors, as it’s a lucrative line of business and is a separate business model in itself.

Amazon’s Easy ship

Sellers who have signed up for Easy ship on the Amazon platform can choose their own logistics partners and ship on the same day.

Is logistics the differentiator now?

Amazon is not the first to roll out its own logistics services in India. Flipkart’s eKart and Snapdeal’s GoJavas (recent acquisition) are on the same lines.

While last year was all about deals and promotions, there was constant mention about the need for a differentiating factor. Has logistics and last-mile delivery become that point of differentiation between the ecommerce players?

About Author

Pooja Vishant

Pooja Vishant

After dwindling with her family business, into travel and hospitality, for more than 3 years, Pooja Vishant found her true love in writing. Happy-go-lucky and cheerful, she loves pink; so pink is the way to go if you want to get into her good books. The Associate Editor keeps track of even a leaf that has moved in the ecommerce world!

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