Amazon Drives Its Offline Strategy in India, Plans To Enter 60 Smaller Cities

Amazon’s fully owned food retailing subsidiary in India appears to be finally taking off after New Delhi gave its assent to the venture for locally sourced items two years ago, multiple suppliers to the online grocer told ET.

Amazon Retail India (ARIPL), currently present in more than 100 cities, plans to expand to another 60 tier 2-3 cities in the next 12-14 months, according to three people familiar with the development. In 2017, the company received federal approval for investing $500 million in a venture to sell locally-produced food items.

Explore More At: https://www.qtriangle.in/ecommerce-design-development/

Multiple food distributors in various cities said currently Amazon is in the process of lining up dozens of small delivery centre’s, in the range of 2,000 sq ft, in tier-2 and tier-3 cities for its hub-and-spoke supply chain model that will primarily be fed by large warehouses located in surrounding areas.

“Since delivering small food items from large cities is not a cost-effective proposition, it has to create those local delivery capabilities,” said one of the food distributors working with ARIPL. “Smaller warehouses will be used for some thousand odd high-moving FMCG products,” said another supplier familiar with Amazon’s plans.

Another person said ARIPL currently sells about 3,000 stock keeping units (SKUs) of food items and has lined up a network of 250 suppliers in various cities.
Amazon did not respond to an email seeking its comments.
ARIPL has had a tepid start locally. Amazon is the only large global corporation to invest here after India in 2016 allowed for the first time overseas capital into selling locally packaged food items through both offline and online channels.

For example, the government had asked ARIPL not to share warehousing and other supply chain paraphernalia with Amazon’s flagship e-commerce marketplace.
Once those issues were clarified, ARIPL had to briefly shut operations on Amazon.in in February amid uncertainties on whether it can continue to sell on Amazon’s marketplace after the December FDI rules on ecommerce Development Company

These rules had barred foreign-backed platforms from selling products from their affiliates.
Now that the governments has to allowed ARIPL to sell on Amazon. In, the venture is expanding.
Amazon has even started creating separate warehouses for ARIPL that otherwise it used to share with Cloud tail and other Amazon operations.

For example, many of the food vendors that earlier supplied to Amazon’s warehouses in Gurgaon and surrounding areas are now supplying to a warehouse in Sonipat that is dedicated to ARIPL, one vendor said.

Learn More At: https://www.qtriangle.in/website-design-development/

ABOUT US
Qtriangle is serving its reputed global clientele since last ten years, having built more than 1500 online shopping applications till now. We are counted among most experienced eCommerce solution providers in India. We provide all IT services required for an eCommerce business.

Contact Us

Devesh Kumar
Manager-IT
Qtriangle Infotech Pvt Ltd
Tel : +91-120-477-9988
Mob : +91-923531-0048
Email : sales@qtriangle.in
Web:- www.qtriangle.in

This release was published on openPR.