Paytm Mall to inject $35mn into logistics for expedite delivery in two categories

Paytm Mall is stepping up its game. The etail version of Paytm recently invested in onboarding offline sellers for it O2O strategy. Now the etailer is working on its logistics network. It recently pushed out 50% of its logistics partners to reduce the number of pincodes it caters to. The ecommerce company will be focusing on one and two-day deliveries for:

  • Specific categories like electronics and appliances
  • Across 25 cities

“We aim to build a trusted and highly efficient logistics network to enable our partnered retailers to offer same-day and next-day deliveries,” Paytm Mall chief operating officer, Amit Sinha declared.

Investment in logistics

To ensure it can meet the demand for speedy delivery the etailer will inject $35 million into delivery infrastructure, for the purpose of expansion. With the help of this investment money, the etailer will offer faster deliveries only on electronics across select cities, to begin with. The number of cities will be increased to 100 in the coming months.

Sinha said, “This will help local shopkeepers offer a more convenient shopping experience to their customers and enable brands to save up to 50 per cent on logistics, as they will be able to bypass inter-city logistics costs. In the coming months, we will rapidly increase the number of items and pin codes where customers can receive their orders the same day or next day.”

The logistics plan

Expedite delivery by Paytm Mall will be free for consumers. Paytm Mall follows China’s Tmall model. It is looking to join forces with local sellers to avoid the steep costs of shipping products from one location to the other.

So, as its number of merchants increase it will have more vendors closer to its customers ensuring quick on-time delivery. Currently, the etailer is partners with national courier companies Blue Dart Express, Xpressbees and Delhivery, which cater to approximately 17,000 pincodes. Shadowfax and Book a wheel are the local courier partners for Paytm Mall.

Unlike, its competitors at the forefront of online retail, Paytm Mall does not have its own logistics arm. The etailer also doesn’t plan on launching fulfilment centres either. Instead, it will invest in its delivery partners so they can develop the necessary capacities to benefit its ecommerce.

Will its different logistical plan save it some cash or burn a hole in its pocket? Tell us what you think online sellers.

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