With the growing demand in online commercial transactions Amazon India has planned to open new fulfillment centers in cities like Delhi, Mumbai, Bengaluru, Patna, Lucknow, Kolkata, Hyderabad, Chennai, Ludhiana, and Ahmedabad. Apart from this they are also expanding warehousing capacity for a long-te
Amazon India plans to open ten new fulfillment centers in the country in response to the growing demand in online commercial transactions in the middle of the pandemic. These fulfillment centers will be sprinkled in several Indian cities like Delhi, Mumbai, Bengaluru, Patna, Lucknow, Kolkata, Hyderabad, Chennai, Ludhiana, and Ahmedabad. The company also plans to expand seven of its existing fulfillment centers.
The expansion and addition of Amazon fulfillment centers increase Amazon India's warehousing capacity at 20% to 32 million cubic feet. In total, the expansions would add another 8 million square feet in floor area. Once completed, there would be 60 fulfillment centers spread across the 15 states.
In a statement, Amazon India said, "Amazon India's fulfillment network will be spread across a floor area of more than eight million square feet more than the land size of 100 football fields, housing millions of items."
In an interview with The Economic Times, Akhil Saxena, VP of Customer Fulfillment Operations, APAC, MENA, and LATAM at Amazon, said: "The increase in storage capacity is in line with our long-term commitment to invest in India."
Saxena further mentioned, "With the expanded network of more than 60 fulfillment centers, we look forward to creating thousands of job opportunities with competitive pay."
Amazon vowed to complete the construction process of the additional ten fulfillment centers before the festive season. The company plans to house huge units like furniture, appliances, and the like to the new fulfillment centers. These fulfillment centers will also serve as receive centers.
Amazon's move to expand and add more fulfillment centers is a surprise since the world's economy these days isn't that pretty. The fulfillment centers expansion is expected to be associated with the surge of hiring of tens of thousands of workers. Amazon announced last May it has 50,000 new seasonal roles to be filled. The positions are mostly for delivery and warehousing.
"In these challenging times, ecommerce will be a key driver of India's growth and job creation. Physical procurement will give way to digital transactions," as per Amitabh Kant, CEO of Niti Aayog.
Meanwhile, Amazon's India's country head, Amit Agarwal, said that Amazon is empowering the supply chain in favor of small and medium businesses or SMBs. They've launched several programs to help SMBs' reach their goals, including launching local shops that allow small shops in several localities.
There has been a 50% increase in seller registrations for Amazon this year, a surprising fact given the seemingly unforgiving pandemic. Agarwal, in an interview with The Economic Times, explained that the surge of registrations can be explained by the fact that people largely see that online selling is the safest method to beat now. Furthermore, the people have been getting a wide range of selections, "greater value and greater convenience" in Amazon.
There are talks of some developments in regulating the commerce industry in India. Two of these developments are the recent consumer protection laws and the upcoming e commerce policy. Agarwal is confident that Amazon isn't intimidated by these regulations as Amazon has always been about pro-customers, quality, and excellence.
Agarwal revealed that Amazon also plans to boost Atmanirbhar Bharat, the new consumer rules.
Amazon installed its first online shopping site in India in February 2012. The site was called Junglee. It allowed the customers to view and compare prices online without buying the products. Cut to 2018, Amazon India became the fastest-growing marketplace in the country. India is also the melting pot of Amazon's Prime service subscription in the world. Amazon, in 2018 alone, has over 100 million Prime service subscribers globally.
"Amazon-in is the fastest-growing marketplace in India, and the most visited site on both desktop and mobile, according to ComScore and SimilarWeb. The Amazon-in mobile shopping app was also the most downloaded shopping app in India in 2017, according to App Annie," as per Jeff Bezos, CEO of Amazon.
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