Amazon strengthens efforts to reach rural India, ties up with Vakrangee

Editor | Sep 10, 2020

Vakrangee, the firm that provides various services to rural India, is creating a partnership with Amazon. ET reports that the service provider will be providing last mile service to the ecommerce giant. This strategic partnership will help Amazon to reach remote rural areas.

Vakrangee will set up ‘Vakrangee Kendras’ to provide marketing and promotional services for Amazon. Rural customers will be given information about Amazon and its products. It will also be setting up centres where buyers can pick up their orders.

All you need to know about Vakrangee

Vakrangee is a Mumbai based service provider, which came into existence in 1990. The company provides multiple services to its rural customers. It provides banking and financial services, Government to citizen services (such as Aadhar, Passport, Election card, tax collection to name a few), insurance services, and business to customer services (such as DTH cable, telecommunication services, e-learning courses, textbooks and certificate courses).

It also works to bridging the gap between retail firms and customers in rural areas by providing last mile services. Vakrangee was listed in the Bombay Stock Exchange (BSE) in 2000 and in the National Stock Exchange (NSE) in 2006.

Tapping the crucial rural market

Ecommerce companies are becoming increasingly aware of the importance of reaching out to the rural and semi-urban buyers (and potential buyers). The last mile delivery is taking predominance in the activities of most online sellers. And they are realising that they cannot do this alone. IOS observed that deliveries in rural markets were faster with help from local logistics companies.

Snapdeal recently began exploring an assisted ecommerce business model to tap the rural audience. IOS reported that ecommerce companies are looking at engaging with India Post partly to reach the remote and far flung areas that the government logistics wing has access to.

Apart from that, tying up with local kirana stores to ensure local delivery is another tactic most ecommerce sites are starting to explore. The online sellers are also thinking up new and innovative methods to ensure the customers get their parcel. It could range from arranging a common pickup point as IOS reported here and here, to having their own logistics departments to working with established and emerging logistics companies.

In a nutshell, the ecommerce companies are employing aggressive moves to ensure timely and effective delivery of customers’ orders, wherever they are based at. Online sellers could do well to follow the developments carefully, as logistics ranks high in measuring the success of any etailer.

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