How Amazon is working hard on beefing up delivery network to beat Walmart

Amazon is working hard on beefing up its delivery muscle as global rival No 1 throws its hat into the ring

This has helped Amazon reach its products in remote pin-codes, such as Havelock Island in Andaman and Nicobar and Majuli, the riverine island in Assam. “As part of the service partner programme, Amazon India works with entrepreneurs, many with prior experience in logistics and transportation. Our service partner network swelled to cover close to 350 stations in 2017, which is 40 per cent more than the 250 we had in 2016. For example, we work with Monica Enterprise run by Rupak Chanda as our service partner to support our last mile delivery requirements in and around Jorhat city (Assam) and they also deliver Amazon packages in unique locations around Jorhat such as Majuli and 21 other pin codes in and around the city including regions such as Dergaon, Kaziranga University and New Sonowal,” says Saxena.

 
Similarly, since partnering with Amazon in Andaman and Nicobar Islands, entrepreneur Sabiha has seen 18 times increase in her sales volume and now delivers in over seven pin codes including Havelock Islands. The other programme called “I Have Space” has given Amazon 17,500 stores in 225 cities including Dehradun, Amritsar, Ajmer, Bharuch, Salem and Raipur.
 
“These local entrepreneurs understand their area well and have immense goodwill in their neighbourhood. Our programmes allow them to supplement their regular income and generate more footfall in their stores. On an average, Amazon India’s store partners deliver between 20 and 30 packages a day, earning a fixed amount per delivery,”

says Saxena.

 
It appears that the service partner and IHS programmes will be at the core of Amazon’s delivery network expansion programme. Saxena goes on to add that IHS is an India-first innovation which could be tweaked and adopted by other emerging markets too.
 
Harminder Sahni, founder and managing director of business consultant company Wazir Advisors, says that the difference between Amazon and its competitors lies in the experience that it has globally, which also gives it an edge over Flipkart in terms of delivery. With the entry of Walmart, Sahni expects some shake-up but believes Amazon will continue to build on its experience of warehouse management.