The race to intensify delivery services amongst e-tailers is definitely gaining ground. Amazon has announced the setting up of Amazon Transportation Services Private Limited (ATSPL), as a subsidiary company to offer delivery services to its online merchants.
ATSPL will accelerate last mile delivery services and assist in rapid deliveries. Currently, Amazon works in sync with many courier companies such as DHL, Blue Dart, Gati and even Indian Post to deliver across nearly 19000 pin codes in India. Interestingly, Amazon is late in setting up its own logistics company as Flipkart delivers via eKart and Snapdeal acquired Gojavas recently.
Yet another shipping assistance platform called EasyShip has been set up by Amazon which enables its sellers to choose their courier partners for better operations and proceed to ship products on the same day. This enables customers to enjoy next day delivery as promised by Amazon on select orders. The EasyShip model is being replicated at global level by Amazon.
Amazon India initiated one day and two day guaranteed delivery in India, the concept was soon lapped up by Snapdeal and Flipkart who promised same day deliveries. Meanwhile, Flipkart is very much likely to announce three delivery services sometime during the year. The additional delivery rates and service does become the decisive factor when it comes to placing an online order.
Despite the presence of many third party delivery service start ups, most well established e-tailers prefer to set up their own delivery companies for accelerating their delivery services and reducing dependence on third party service providers who could be delivering goods of competitors too. Another major reason being, botched up last mile delivery services could hamper their reputation and imply losing out in the race to lead the ecommerce segment.