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Amazon to also handle logistics for other retailers

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amazonWorld's largest ecommerce firm Amazon Inc, which runs an ecommerce marketplace in India through Amazon.in, will now offer its in-house logistics services, for order fulfilment for retailers running other ecommerce sites, sources told Techcircle.in.

This would be akin to what Rocket Internet-backed Jabong implemented last year by handling third-party logistics for others through JaVAS, a short form for Jabong Value-Added Services. JaVAS is independent from Jabong in operations and has a separate team and doesn't use Jabong's resources like warehouses, etc.

The development related to Amazon was first reported by NextBigWhat, which added that it will be running a pilot programme till January next year and until then its merchant partners can use the service for free.

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We are contacting the company to confirm the development and will update the story as and when we get a confirmation.

Amazon already offers logistics to other vendors who sell products through its marketplace in India. A couple of years ago, Techcircle.in first reported that Amazon was creating a local logistics backend in India, prior to its official foray into the country.

It set up a wholly-owned subsidiary in India to provide 'courier services' for delivery of goods within the country.

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Amazon.in, the marketplace launched in India by Amazon Seller Services Pvt Ltd (part of Amazon), kicked off in June this year and has been independently adding new categories. However, as a marketplace, the site does not sell products directly to the consumers, instead functions as a technology platform connecting sellers with buyers.

Existing norms, which do not allow foreign investment in ecommerce firms, also say a foreign funded wholesale retailer cannot derive over 25 per cent of its revenues from a group firm. Foreign investment up to 100 per cent stake is allowed in ecommerce marketplaces such as Amazon.in and eBay.in.

(Edited by Joby Puthuparampil Johnson)

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