In this file:
∑ Amazonís Grocery Biz Makes A Comeback After A Brief Pause
∑ Amazon grocery service slowly returns in India after e-commerce disruption
∑ Amazon's CFO Says Shipping Orders Itself Is Cheaper Than Using FedEx or UPS
Amazonís Grocery Biz Makes A Comeback After A Brief Pause
Amazon Pantry is now offering select products
Amazon was using govt permission to sell pantry products via affiliate
Amazon committed has $500 Mn to its food retail plans in India
Bhumika Khatri, Inc42
After it halted services of its groceries platform due to DPIITís (Department for Promotion of Industry and Internal Trade) refusal to postpone the deadline on the FDI ecommerce rule from Feb 1, global ecommerce giant Amazon is getting back in the groceries game.
A Reuters report said that on Tuesday (February 5), that Amazon Pantry was offering select food products, such as cookies and tea, in New Delhi and Mumbai. Even though some users could place the orders, others were seen complaining on Twitter for not being able to do so.
Inc42 also tried to place an order and access products on the companyís Prime Now app for groceries and found several usually-listed products. The order was processed seamlessly.
According to the Reuters report, Amazon was using government permission to sell some Pantry grocery products via an affiliate.
It is to be noted that Amazon grocery services had been a major plan for Amazonís food retail plans for India, for which it has committed $500 Mn, of its $5 Bn commitment to its market in India.
Amit Agarwal, Amazon India head, had earlier said that Amazon expects groceries and household products to account for over half of its business in the country in the next five years, as it moves to broaden offerings in the segment and foray into areas such as fresh produce.
The company has been having a tough time getting through with sellers in which Amazon doesnít have a direct or indirect equity stake, under the new rules. The changes in FDI rules for ecommerce also prohibit large online marketplaces for selling exclusive products...
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Amazon grocery service slowly returns in India after e-commerce disruption
Aditya Kalra & Sankalp Phartiyal, Reuters
February 5, 2019
NEW DELHI/MUMBAI (Reuters) - Amazon.com Incís grocery service is slowly returning on its India website after the online retail giant faced disruption from revised e-commerce curbs which kicked in on Feb. 1.
New federal rules, which bar companies from selling products via vendors in which they have an equity interest, forced Amazon India to remove hundreds of thousands of products from its site last week.
The policy has spooked Amazon and Walmart-owned Indian rival, Flipkart, as it is forcing them to alter their business structures.
On Tuesday, Amazon Pantry was offering select food products, such as cookies and tea, in New Delhi and Mumbai. Though Reuters reporters in both cities were able to place Pantry orders, several customers complained on Twitter they were struggling to get their requests fulfilled.
India allowed Amazon to retail food products in the country in 2017 and the company committed $500 million in investment. Amazon was using that government permission to sell some Pantry grocery products via an affiliate, two sources familiar with the plans told Reuters.
Amazon did not immediately respond to a request for comment.
Though several of Amazonís products, such as its own range of Presto-branded home cleaning goods, were still unavailable, some have returned for sale in recent days.
Some products were now being sold through sellers in which Amazon doesnít have direct or indirect equity stakes, making them compliant with the new rules, one of the sources said.
Nevertheless, the new policy has hit Amazon and Walmart hard...
Amazon's CFO Says Shipping Orders Itself Is Cheaper Than Using FedEx or UPS
The company's growing logistics and delivery network is something to keep an eye on.
Adam Levy, The Motley Fool
Feb 5, 2019
Amazon.com's (NASDAQ:AMZN) shipping costs increased 23% year over year in the fourth quarter. While that's an improvement from the 31% increase during the same period last year, it's still more than the 14% increase in paid units the online retailer managed.
Amazon is working to reduce shipping expenses by moving more of its logistics and deliveries in-house with Amazon Air and a homegrown network of delivery service providers. On the company's fourth-quarter earnings call, CFO Brian Olsavsky provided some additional details about how Amazon manages its shipments between its own network and partners including FedEx (NYSE:FDX) and UPS (NYSE:UPS).
Picking the low-hanging fruit
Amazon is often able to transport inventory from its warehouses to its customers' doors more quickly and less expensively than FedEx or UPS can.
"What we like about our ability to participate in transportation is that a lot of times we can do it at the same costs or better, and we like the cost profile of it," Olsavsky said on Amazon's fourth-quarter earnings call. "We can also invest selectively, because we have more perfect information. We know where our demand is, we know where we're moving things between warehouses and sort centers."
In other words, there are some cases where there's strong enough demand for Amazon's inventory that Amazon can move packages more quickly and at a lower cost. That's because it can pick and choose which markets it delivers to while relying on FedEx and UPS for markets with less demand.
As Amazon continues to take a growing share of the relatively fast growing online retail market, the number of hubs and cities Amazon can economically serve will steadily increase. That presents a major threat to both UPS and FedEx. Not only is Amazon a big customer for the couriers, but it also has a history of leveraging its own in-house infrastructure to offer services to other businesses. That is to say that Amazon could offer delivery service to other businesses in the future.
A competitive advantage against other retailers ...
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