Amazon ties up with Kirana stores, attempt to tap into online grocery segment?

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Amazon is starting yet another pilot project to capitalize on the ecommerce success wave. The ecommerce giant is all set to launch Kirana Now, an express delivery platform in tie-up with the corner mom-and-pop stores. Based on the success of the pilot project in Bangalore, the company will decide on scaling up the concept nationally.

Amit Agarwal, Amazon India’s country head, explained how this is an India-specific operation meant exclusively to cater to the needs of the local market. “We want to provide maximum convenience to customers when shopping for their everyday needs and enable them to shop from the ecosystem of their local stores on their mobile phones and get things delivered when they really need it,” Agarwal said.

How will Amazon’s Kirana Now operate?

Currently, Kirana Now has been made available only on Amazon’s mobile platform and orders would be delivered to customer in 2-4 hours.

  • Kirana stores, listed as sellers, will upload their product listings.
  • Amazon will handle the technology part.
  • Deliveries will be handled by Amazon, kirana sellers and logistic players

The delivery part is crucial in the online grocery segment, as some of the items could be perishable.

Amazon’s relationship with Kiranas

Last year, Amazon was probably the first to recognize the significance of these around-the-corner kirana shops and integrate them into the ecommerce supply chain. Amazon started using them as pick-up points for their deliveries so that working people could up their orders at their convenience from these shops.

After kickstarting the pilot in Bangalore, it was extended to around 500 stores in 28 cities.

Also, online grocery has been rapidly increasing in popularity in the online shopping circuit especially in the metros. With time crunch and traffic issues, it’s definitely easier for the working population to order their daily essentials with a click and without having to move from their seats.

Tying up with Kiranas- a smart move?

Apparel and electronics being the hottest selling categories, most players are concentrating on the returns from them. So it’s only the vertical players like Big Basket who are focusing on grocery now.

Considering how the global giant quietly inched its way into the Indian ecommerce space, beating the home grown players in just ten months, it won’t be a surprise if Amazon emerges on the top in the online grocery segment. With the Kirana angle in the picture, would be interesting to see how far it clicks with consumers, don’t you think?

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5 Comments

  1. goinindia Reply

    The kirana stores will not be able to upload products. How amazon offers to tackle that remains to be seen, How amazon proposes to convince kirana stores about paymant terms(they curently pay their sellers after ten days) is also to be seen. What succeeds in bangalore may not work elsewhere since bangalore has a uniquely urban population.

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