Ahead of festive season, Amazon goes big on operations network expansion, to add 150 delivery stations

As e-commerce giants prepare for the festive season in India, Amazon India on Monday announced the biggest-ever expansion of its operations network.

According to a release, Amazon will launch 20 fulfilment centres (FCs), six new sort centres (SCs) and at least 150 new last-mile delivery stations. These facilities will be run and managed by partners that are leaders in the logistics industry, said the release.

The development comes as Amazon announced that it will create 1.6 lakh temporary jobs across its operations network to meet surging festive demand.

Additionally, the expansion will increase the company's overall storage capacity by 50% to 64 million cubic feet, a volume equivalent to more than 720 Olympic-sized swimming pools.

Amazon expands network in Tier II, Tier III cities

As part of its expansion beyond major cities, the e-commerce giant said that all new sort centres and seven fulfilment centres will be opened in non-metro locations. This includes the first fulfilment centres to be established in Raipur, Ranchi and Varanasi, strengthening its logistics network across Tier II and Tier III cities.

The company expects the new sort centres in Chikkaballapur, Hassan, Meerut, Ramanagar, Raipur and Varanasi to raise Amazon's total sortation space by roughly 25% to 3 million square feet, up from 2.4 million square feet.

Additionally, the company has opened at least 150 new last-mile delivery stations across 118 cities, including Asansol, Bathinda, Bikaner, Coimbatore, Doda, Etawah, Gaya, Hosur, Jaunpur, Junagadh, Madurai, Nellore, Puri, Siliguri, Solapur, Tiruvannamalai, Tumkur, Udhampur, West Garo Hills and more.

Of the 118 cities, 12, including Bhojpur, Bokajan, Jalaun, Jehanabad, Namsai, Puruliya, Ribhoi, Senapati, Sivasagar, Udalguri, Ukhrul and Wokha, will get their first last-mile delivery station. The expansion plan comes after the e-commerce giant announced plans to invest ₹2,800 crore to boost its pan-India operations network.

Commenting on the latest development, Amazon's Abhinav Singh, VP – Operations, India, APAC, Middle East, Türkiye and Africa, said, "At Amazon, our focus has always been on getting closer to customers and sellers so we can serve them faster and more reliably. We continue to invest in building one of India’s largest, safest, fastest and most reliable logistics networks, serving customers across the country. This year, we are investing over ₹2,800 crore ($300 million) to strengthen and upgrade our operations network and enhance the technology that powers our infrastructure, while supporting associate safety, health, and financial well-being."

Amazon, Meesho gear up for festive season

To meet the anticipated surge in demand during the festive season, e-commerce companies are increasing hiring across warehouses, fulfilment centres and last-mile delivery operations to handle the festive rush.

On 2 September, Amazon announced that it would hire 1.6 lakh workers for temporary positions across its operations network, which supports both its e-commerce and quick-commerce businesses. In a blog post, Amazon said, “These include direct and indirect work opportunities across 400 cities in India, spanning large metros as well as tier 2 and 3 cities like Varanasi, Kochi, Jalandhar, Ghaziabad, Ranchi, Salem, Gorakhpur, and others. Amazon has created opportunities for thousands of women and associates with disabilities in its network. The new associates will join Amazon’s existing pan-India operations network, helping pick, pack, ship, and deliver customer orders safely and reliably while supporting the growing demand during the festive period.”

Separately, in August, Meesho announced similar plans, saying it expected to add over 10 lakh seasonal jobs during the festive season. It expects to generate roughly 6.5 lakh jobs through its seller network and at least 3.75 lakh opportunities in its logistics operations.