DirecPay Payment Gateway : India Post helps Amazon to accelerate expansion of Indian e-commerce market

India Post helps Amazon to accelerate expansion of Indian e-commerce market

Amazon does plan to expand its presence in the Indian subcontinent through a deal with India Post. Here's a detailed look at the strategy:

**1. Background and purpose of cooperation**

As India's position in the global supply chain continues to grow and multinational companies shift their sourcing centres, Amazon sees great potential in the Indian market. To further improve delivery speed, efficiency and coverage, especially in remote and rural areas, Amazon has chosen to partner with India Post.

**2. Details and results of cooperation**

**Signature of strategic memorandum of understanding:**

Amazon has signed a strategic Memorandum of Understanding (MoU) with India Post to leverage the Postal Service's extensive 'last mile' delivery network.

Amazon is the first major e-commerce platform to implement an end-to-end integrated cash-on-delivery (COD) solution with India Post.

**Extended coverage:**

In the last 2 to 3 years, India Post's coverage in Amazon's logistics network has more than doubled, with the number of collection points increasing from 6 to 13 across the country.

The partnership has resulted in the number of Amazon parcels delivered through India Post almost tripling in the last 18 months.

**Enhanced distribution efficiency:**

By partnering with India Post, Amazon has managed to increase the speed of delivery in remote areas, allowing more consumers to enjoy the convenience of Amazon's services.

**3. Other relevant initiatives**

In addition to its partnership with India Post, Amazon has taken a number of other steps to expand its reach and market share in the Indian market:

**Increase in export targets:**

Amazon plans to export around $5bn of small goods from India and expects total e-commerce exports in the country to reach $20bn by 2025.

**Expansion of railway cooperation:**

Amazon has entered into a partnership with Dedicated Freight Corridor Corporation (DFC), a subsidiary of Indian Railways, to speed up the delivery of parcels.

The parties will work together to identify a central radial network, priority rail areas, large parcel hubs and implement an efficient transport strategy from the centre to the radial points.

**Launch of initiatives to support seller growth:**

Amazon has launched several initiatives in India to support seller growth, including streamlining cross-border shipping and compliance processes and providing multi-channel fulfilment services.

These initiatives are aimed at lowering the barriers for Indian entrepreneurs to take advantage of e-commerce export opportunities and help them better expand into overseas markets.

In short, Amazon is continuously expanding its presence in the Indian subcontinent through its partnership with India Post and other related initiatives. These efforts have not only improved Amazon's delivery efficiency and service quality in India, but also laid a solid foundation for further expansion in the Indian market.