Amazon India to open 14 new storage centres and create 5000 new jobs
Amazon India is expanding in the face of growing demand by its Prime customer base. The company is doubling its storage capacity by adding 14 new fulfilment centres to speed up their delivery system.
- May 3, 2017,
- Updated May 3, 2017 1:27 PM IST
Amazon India is expanding in the face of growing demand byits Prime customer base. The company is doubling its storage capacity by adding14 new fulfilment centres (FC) to speed up their delivery system.
According to a report by Business Standard, this expansionwill also result in around 5,000 new jobs for the company in the fourteen newcentres. The 5,000 new jobs are apart from the temporary workforce the companyhires during sale seasons.
FCs are warehouses where sellers can stock their inventory. They can save money by replacing their upfront capital expense with low variable cost and pay only for the storage space they use and the orders Amazon fulfils.
Also read: Amazon.In sets up seven new warehouses; to hire 1,200 people
The company will be foraying into three new states, AndhraPradesh, Uttar Pradesh and Madhya Pradesh by setting up three centres. Out ofthe 14 centres, seven will deal with heavy equipment like furniture andbig electrical appliances and the rest of the seven will be opened by mid-June.
"We've continued to expand our network over the pastthree years. For Prime customers, this growth in fulfilment centres enablesthem to get deliveries faster. So as the Prime customer base in India growsbigger they will be able to benefit from this," said Akhil Saxena, VicePresident for Customer Fulfilment at Amazon India.
Also read: Here's why Jeff Bezos is selling $1 billion of Amazon stock a year
Amazon India has been on its heels to compete with thecurrent market share leader, Flipkart. Amazon Prime service has been aadditional advantage for the company and though there is no open declarationabout the new funding for the fourteen new centres, Amazon is definetly actingon CEO Jeff Bezos recent claim to "keep investing in technology andinfrastructure" in India.
Amazon India is expanding in the face of growing demand byits Prime customer base. The company is doubling its storage capacity by adding14 new fulfilment centres (FC) to speed up their delivery system.
According to a report by Business Standard, this expansionwill also result in around 5,000 new jobs for the company in the fourteen newcentres. The 5,000 new jobs are apart from the temporary workforce the companyhires during sale seasons.
FCs are warehouses where sellers can stock their inventory. They can save money by replacing their upfront capital expense with low variable cost and pay only for the storage space they use and the orders Amazon fulfils.
Also read: Amazon.In sets up seven new warehouses; to hire 1,200 people
The company will be foraying into three new states, AndhraPradesh, Uttar Pradesh and Madhya Pradesh by setting up three centres. Out ofthe 14 centres, seven will deal with heavy equipment like furniture andbig electrical appliances and the rest of the seven will be opened by mid-June.
"We've continued to expand our network over the pastthree years. For Prime customers, this growth in fulfilment centres enablesthem to get deliveries faster. So as the Prime customer base in India growsbigger they will be able to benefit from this," said Akhil Saxena, VicePresident for Customer Fulfilment at Amazon India.
Also read: Here's why Jeff Bezos is selling $1 billion of Amazon stock a year
Amazon India has been on its heels to compete with thecurrent market share leader, Flipkart. Amazon Prime service has been aadditional advantage for the company and though there is no open declarationabout the new funding for the fourteen new centres, Amazon is definetly actingon CEO Jeff Bezos recent claim to "keep investing in technology andinfrastructure" in India.