The retail giant Amazon has signed a deal with India Post and Indian Railway, which will see an expeditious growth in delivery for small businesses.
This logistic partnership will digitize an additional four million micro, small, and medium enterprises over the next two years. Amazon has been investing in India’s e-commerce over the years and aims by 2025 to more than double its e-commerce exports.
It has also introduced a new artificial intelligence tool, with the intention to motivate small and medium businesses to use Amazon more. With the AI ‘assistant’, the processes are simplified to make it more user-friendly for businesses to use Amazon as a preferred business partner.
The purpose of the deals
The partnership with Indian Railways will open the tracks for Amazon to use India’s direct foreign corridors for deliveries. This way, it will increase capacity, it’s faster and more reliable transport, and it’s cost-effective. Amazon has already started using the railway’s Dedicated Freight Corridor Corporation of India (DFC).
Using the railways for faster and safer deliveries will also enhance logistics and supply chain management. The TechCrunch is reporting that it’s the first time Amazon is pitching itself as a fulfillment partner to direct-to-consumer brands that may not be selling on Amazon itself.
What does it mean for digital platforms?
This partnership is positive news for smaller e-commerce companies that will have an opportunity to sell to an extensive global network enabled by the postal service deal. It’s reported that e-commerce businesses in India have struggled to expand beyond the Tier-1/metro consumers. Amazon and Walmart have been pushing for e-commerce to enter a new level.
Many companies have stagnated in the e-commerce industry, unable to attract more customers. Experts hope this partnership with India Post and Indian Railways will, at least, unlock this potential.
Why India Post and Indian Railways
The Indian Railways runs the fourth largest railway network in the world. The TechPortal reports that the enterprise was responsible for 1.4 billion tons of cargo transport in 2022. Conversely, India Post is the globe’s most widely distributed postal system. It’s a 164-year-old service. It links itself to global postal and delivery networks.
It’s, therefore, no surprise Amazon is investing billions of dollars into this partnership. Indirectly, these partnerships create job opportunities, further boosting the country’s economy. Amazon hopes to create a total (including older projects) of 2 million jobs by 2025.