Amazon India has announced the launch of its third fulfilment centre (FC) in West Bengal. Spread over 140,000 square feet with over 600,000 cubic feet of storage space, the new FC in Kolkata will allow deliveries within 1 or 2 days in the region.
This is Amazon’s third FC in the region. Amazon has about 8500 sellers in West Bengal out of which about 4500 are in Kolkata. The development comes ahead of its ‘Prime Day 2018’ sale, starting July 16. In this sale, Amazon’s Prime members can expect exclusive deals, discounts, offers etc on the products listed on Amazon during the sale.
Note that, Amazon Prime, the e-commerce marketplace’s membership program, is now available on a monthly basis. The monthly pricing is ₹129, which is around 50% costlier on an annual basis than the one year plan, which costs ₹999. Amazon Prime comes with some delivery and sale perks, as well as Prime Video and Prime Music. Unlike the yearly plan, this option comes with auto-renewal, which will bill users’ cards automatically each month.
Amazon’s Prime service is estimated by IHS Markit to have around 6 lakh subscribers in India. The company does not disclose country-specific subscriber numbers outside the US.
Amazon India’s FC
This FC is one of the five announced for 2018. Amazon India said that it will have 67 operational fulfilment centres in 13 states across the country with a combined storage space of close to 20 million cubic feet by end of this year.
After Kolkata’s new FC, Amazon India now has 57 Fulfilment Centres in over 13 states.
In February, Amazon India had announced the opening of 15 new Fulfilment Centres (FC) for its grocery delivery service. The FCs are equipped with temperature controlled zones, to store perishable products such as fruits & vegetables (F&V), dairy products, chilled & frozen products. The centres store smartphones, laptops, kitchen appliances, other consumer electronic products, beauty products and household supplies.
In September last year, Amazon India had opened its 41st fulfilment centre (FC) in Hyderabad which covers over 400,000 sq ft with close to 2.10 million cubic ft and is located in Rajiv Gandhi International Airport. The e-tailer has four other FCs in the state. In 2015, Amazon India had opened six fulfilment centres in Chennai, Mumbai, Delhi and Jaipur to expand its services. At the time it had mentioned that 80% of sellers in India used its fulfilment services. In all, the company has increased its fulfilment capacity for sellers by 26% this year.
Amazon India updates
Amazon India has expanded its Seller Lending program, with the launch of Seller Lending Network to enable loans to sellers from third-party lenders such as Aditya Birla Finance, Bank of Baroda, Capital First, Capital Float, Flexiloans, and Yes Bank.
The company has infused Rs 10.5 crore in its Indian food retail arm Amazon Retail India, as per MCA filings. In May, Amazon India received a massive infusion of Rs 2600 crore from its parent Amazon Inc. (US), as per MCA filings.
In its earnings call in April, CFO Brian Olsavsky had said that the company will continue to invest in India where it is seeing great progress with both sellers and also customers. A week prior to that, In his letter to shareholders, Jeff Bezos highlighted India as a ‘milestone’, stating that Amazon.in is the fastest growing marketplace in India. He also highlighted that Prime added more members in India in its first year than any previous geography in Amazon’s history.