Local Shop on Amazon is new initiative by Amazon. The programme is launched to scale the business by starting selling goods directly from local shops. But the real objective is to get an edge over Reliance’s JioMart and Walmart-owned Flipkart.
Amazon’s new programme
The US e-commerce giant has promised to invest Rs. 10 crores in its “Local Shop on Amazon” programme. The company has already started the project with over 5,000 traditional retailers. The programme will provide the convenience of ordering goods online and scalability to offline retailers.
The pilot project has been kicked off in over 100 cities including big metros and Tier-1 and Tier-2 cities like Ahmedabad, Coimbatore, Faridabad, Hyderabad, Indore, Jaipur, Lucknow, Pune, Saharanpur and Surat. The sellers participating in the project include automotive, books, furniture, home décor, jewellery, kitchen appliances, sports and toys.
Traditional retailers are included in the programme with a condition that is to have a robust delivery mechanism of same day or the next day. Amazon wants the retailers to use pin-code delivery system to ease the burden from its delivery fleet. The shopkeepers are provided “Amazon Delivery App” that will help the customers and Amazon in keeping track of shipments.
Timing of the launch
Like other e-retailers, Amazon is also struggling to fulfil its orders due to national lockdown in the event of spread of novel coronavirus. And the arrival of local shops into the business will help solve the delivery issue to a large extent.