Amazon To Establish Its Second Largest Delivery Center In India

Amazon will build its second biggest delivery center in the country to penetrate into the Indian  competitive online trading industry

As per reports, the American e-commerce company has announced that its second-biggest delivery center will be established by it outside the United States in the Indian city of Hyderabad which is South Indian state Telegana’s capital city. The measure came one year after the organization stated it would establish its largest India based warehouse near Hyderabad..

Telegana’s government’s senior official spoke to the Economic Times that the online trading giant was allocated 10 acres of land for the planned delivery center which is supposed to occupy 2.9 million square feet, developed to accommodate 13,500 people.

The Amazon development center’s present headcount in the city of Hyderabad is around 1000 across a number of offices. The announcement done on Friday by the company highlighted the increasing interest amongst giants based in Silicon valleys, a part of Andhra Pradesh in South of India.

In February, Apple announced to establish its biggest technology development outside the USA in Hyderabad. In recent times, Google and Microsoft also discussed plans to establish their campuses in the region.

Sources referred by the local media stated the building of the warehouse of Amazon, also called “fulfillment centers” will begin on 30^th March 2016.

Fulfillment centers often established close to airports are employed to dispatch, sort and collect customer orders form third party suppliers and the company, who avail the huge warehousing system of the electronic trading platform operator free of charge.

Amazon is currently running such warehouses totaling at 21 in 10 Indian states.  In 2014, an investment of $2 billion was announced by the enterprise to expand its Indian operation.

As per reports of Dnaindia, the Seattle based company presently has leased  an office space of 1.2 million square feet in Bengaluru and rented an office space of 30,000 square feet in Mumbai. Sources have revealed during the inauguration ceremony of the planned delivery center of the company, its vice president John Morgan and senior vice president David Zapolksy will  probably be present.

In other news, Nyoooz has reported that in the Indian city Chennai’s neighborhood Guindy, girls are delivering orders to Amazon’s customers and managing and running its warehouses. The Indian city has now become one of the 2 first only-women delivery centers in India. The other only-woman delivery center is located in Thiruvanthapuram, Kerala.

The 2 delivery centers were launched in the last week, with the one in the neighborhood of Chennai operational since 3^rd March 2016. The representatives of the company have stated the measure has been taken to provide a vast number of job opportunities to women in the logistics industry.

Amazon Buys Emvantage Payments For Online Payment Platform In India

Amazon has acquired Indian payment service company 'Emvantage Payments' for an undisclosed amount.

Amazon has purchased the Indian payment service provider ‘Emvantage Payments’. It is not a secret that the American e-commerce company has betted on India amongst its next huge markets located outside the United States.

The company is not only investing capital in India but also purchasing emerging companies to extend its foothold in the state. On Tuesday, the Seattle based company announced the acquisition of the Indian organization. Like PayPal or Stripe, Emvantage allows online sellers to accept debit and credit cards. It also allows establishing their branded prepaid mobile payments and debit cards.

The online retailer said the acquired organization would help it to develop the payment facility for online business in the country faster. Workers of Emvantage will become members of Payment team of Amazon to specifically establish payments products to cater the market of India.

In recent times, the online trading giant spoke to Vivian Walt of Fortune that after the United States, India would turn into its largest market within a decade. An official of Amazon, Diego Piacentini, stated Amazon’s sales opportunity is worth trillions of dollars. Recently Morgan Stanley forecasted that e-commerce sector is capable of increasing its revenue from $11 billion in 2013 to $137 billion in 2020.

The main factor that will help this growth will be to enable people to pay for goods through mobile phones and internet simply by taping a button or swiping. India vastly differs from US in terms of online payments and credit cards. Just 60% Indians have bank accounts and a tiny portion of those people is owners of credit cards.

The acquisition will improve the ambitions of Amazon to develop a payments technology that helps the population of India and provide it an opportunity to grow in the country. Emvantage has pioneered a range of payments solutions that include pre-paid cards, mobile payment, and payment gateway.

Amazon has not revealed the price at which it has purchased the Asian organization. Tech crunch reported that in 2020, the worth of Indian e-commerce market would reach $100 billion. In the region, a large number of online buyers use online wallets to pay for goods purchased online.

Cash paid on delivery, pre-paid cards and conventional stores are the options that are much more availed by consumers than online wallets. Alibaba-backed online payment service provider ‘Paytm’ has offered its own mobile wallet as an alternate to debit and credit cards, but it battles with many payment services owned by the major online trading players of India.