Amazon invests in 7 new Fulfilment Centres

11 Sep '15

3 min read

Amazon.in has announced that it has invested in seven new Fulfilment Centres (FCs) to meet the growing needs of its fast-growing seller base in the country. New FCs have been opened in Ahmedabad, Delhi, Kolkata, Nagpur, Gurgaon, Pune and Mumbai , the e-commercemajor said in a press release.

With the launch of these new FCs, Amazon now has 20 FCs operational across 10 states in India covering a total area of over 1.6 million square feet with a storage capacity of nearly four million cubic feet.

The FCs will allow Amazon.in to offer its Fulfilment by Amazon (FBA) service to thousands of small and medium businesses in these states and empower them to gain access to and service customers across the country at significantly low operating costs. They will also enable faster and quicker delivery of products to amazon.in customers in these regions.

“Sellers on our marketplace have been witnessing exponential growth with overall volume growth exceeding 500 per cent in the latest quarter and largely powered by our Fulfilled by Amazon service contributing more than 75 per cent of total units. We remain committed to investing in our fulfillment and logistics capability to enable and empower sellers to serve customers nationally at lower costs and increase sales,” said Amit Agarwal, Vice President and Country Manager, Amazon India.

Akhil Saxena, Director, Operations, Amazon India said , “This investment in fulfilment infrastructure before the upcoming festive season will enable thousands of sellers to take advantage of Amazon's FBA services and grow exponentially during the country's biggest shopping season and enable us to offer our guaranteed fast delivery promises to more customers during the festive season.”

Amazon.in FCs are present in Gujarat, Haryana, Karnataka, Maharashtra, Delhi, Punjab, Rajasthan, Tamil Nadu, Telangana and West Bengal.

Amazon Fulfilment Centres are warehouses where online retailers who use Fulfillment by Amazon (FBA) services, stock their inventory. When using FBA, sellers across India send their products to Amazon's fulfilment centres and once an order is placed, Amazon picks, packs and ships the order to the customer, provides customer service and manages returns on behalf of the sellers. Orders fulfilled by Amazon are eligible for Cash on Delivery, Guaranteed Next-Day, Same Day, Release Day and Sunday delivery.

Sellers save money by replacing their upfront capital expense with low variable cost and pay only for the storage space they use and the orders Amazon fulfills. Sellers always have the flexibility to choose the number of products they want to have fulfilled by Amazon and scale according to their business requirements. Globally, sellers converting items to FBA generally see a 30-40 per cent rise in sales. (SH)

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