Amazon is quietly starting to offer its transportation and logistics network as a service to third-party merchants, businesses and brands directly to consumers in India, using its large supply chain to drive revenue in the key overseas market as the e-commerce group tries to replicate a model that has been testing in the US for several months.
The service, called Amazon Shipping, offers “extensive reach and the highest reliability – all at the lowest logistics costs,” the company describes on its website. Amazon Shipping “will pick up your packages 7 days a week and deliver them to your customers,” the company adds.
The retailer that has poured over $6.5 billion into India for the past seven years it says it has offered its supplies at “competitive prices” and includes a dedicated support channel. There is no extra charge for weekend deliveries and customers are not bound by any shipment contract, allowing them to cancel the service at any time.
It has partnered with local firms Shiprocket, Unicommerce, Easyecom, Clickpost and Vinculum for order and delivery management systems, the site said. The company has been testing the service for at least several months in India, according to an analysis of archived pages.
As Amazon expands its delivery service, it could become a headache for local businesses including Delhivery, Ecom Express and even legacy logistics giants including Blue Dart and India Post. Flipkart, Amazon’s rival in India backed by Walmart, too began to open up its logistics network to third-party companies earlier this year.
the Indian newspaper Economic Times reported for the first time for Amazon Shipping and added that Amazon Shipping covers all types of products other than hazardous and dangerous goods. On rules pageAmazon says Shipping currently offers the ground delivery mode and limits the number of shipments to 99 per order.
Amazon opened its logistics network to third-party merchants in the US earlier this year with a service called Buy with Prime. Analysts say Amazon could pose a bigger challenge to rivals like Shopify with the move because it has built an almost “impregnable moat in logistics.”
“Today, Amazon’s logistics is massive and fully integrated from the fulfillment center to the doorstep, even though it only serves Amazon; the obvious next step is opening it up to retailers outside of Amazon, and that’s exactly what’s happening,” Stratechery’s Ben Thompson wrote earlier this year.