Amazon to Lanch 3PL Services

Amazon is systematically plotting its expansion into the country. Their launch in India began with a website stocking products from limited categories, especially mobile phones and electronics. However, over the ensuing months the company has been steadily opening up new categories, launching mobile apps for both Android and iOS and finally looking to take a bigger bite of the Indian online marketplace pie by providing third party logistics services.

While this bit of news is not official and was first reported by NextBigWhat, we have yet to receive official confirmation on this move. According to this report, the e-commerce company is going to run a pilot run of the service till February for sellers on its marketplace as well as third party merchants. The service will be free for all sellers on the Amazon marketplace during this pilot. Prices for both parties will be decided after the pilot is over. Amazon is setting up its base in Hyderabad where it is reportedly hiring 13,500 people  for its operations. This means that the company is seriously investing into the Indian marketplace. This can be gauged by how important its logistics service is to its business in the United States.

What is the potential  impact on sellers?

Established marketplaces will now have to contend with another determined competitor with much more funding and patience. It is thus advisable for Indian sellers to follow a multi-platform strategy when it comes to selling online. Listing your goods on the top 3-5 marketplaces will make a lot of sense. Besides, the company has just made their Amazon sellers’ life easier when it comes shipping and logistics, which seems to still be a challenge in the Indian market.