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Amazon Opens 6 New Fulfilment Centres; Preparing for Something Big?

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Amazon New Logo 2016

Amazon India’s Great Indian Festive Sale is known to attract a lot of buyers for heavy discounts and amazon customer-centric service. The sale is held in October every year and sees participation from a variety of merchants.

To keep up with similar sales, during Independence day-week and Diwali, the company tries to keep its orders maintained in the fulfilment centres. However, it seems that Amazon is aiming for a bigger bite this year and has opened six new fulfilment centres in India to carry the burden of streamlined deliveries.

An fulfilment centre is generally a warehouse where sellers can stock their inventory with Amazon. Amazon literally takes responsibility of their products, all sellers have to do is pay a small fee for keeping their inventory with the company. This helps Amazon offer faster and streamlined deliveries to their buyers.

As the E-commerce growth in India increases exponentially, sellers end up stocking more items with Amazon, for which there have to be more number of fulfilment centres. To satiate the extra demand, Amazon India has opened these centres in Chennai, Coimbatore, Delhi, Jaipur and Mumbai.

The new additions increase the count of fulfilment centres to 27 in India, present in majority of the states.

Is this just for the festive sale or something bigger?

On a day-to-day basis, Amazon India might not need so much inventory to meet the demands of Indians customers, however during peak times, the demand rises and the company uses these centres to offer deliveries as quick as possible.

However, we think there is more to it. Amazon is also working on launching its Prime service in India, which will offer quicker deliveries to customers who have subscribed to it. As and when it launches, there will be thousands of sign-ups within a few days.

Amazon India’s sales in 2014-2015 time period increased six folds from the previous year, confirming the immense growth the company is seeing. A customer-centric company like Amazon has to have strict measures in place to reduce errors.

Amazon is not just going to have a grand sale in October, but probably smaller ones which will extract a lot of volumes from its warehouses. Now we know how the company is preparing to take on Flipkart’s Big Billion Day sale.

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