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Amazon India launches small format storage sites for Tier-2 and beyond sellers

With Amazon’s launch, sellers can engage with the service providers to send their products to the nearest MSF site and make them available to customers across pincodes (REUTERS)Premium
With Amazon’s launch, sellers can engage with the service providers to send their products to the nearest MSF site and make them available to customers across pincodes (REUTERS)

  • Amazon India has launched Multi-Seller Flex (MSF), which are 2000 sq ft storage sites, for its sellers in small cities and towns, who need support in storing their inventory and processing customer orders

BENGALURU: E-commerce major Amazon India has launched Multi-Seller Flex (MSF), which are 2000 sq ft storage sites, for its sellers in small cities and towns, who need support in storing their inventory and processing customer orders.

These MSF storage centres, much smaller compared to Amazon’s massive fulfilment centres (FC), will be operated by authorised third-party service providers. The regular FCs are operated by Amazon.

As part of the program, Amazon partners with local entrepreneurs to provide sellers with storage for their inventory and processing of customer orders while the e-commerce firm will provide shipping and logistics support for seller shipments.

Nearly 50% of Amazon India’s sellers are currently from non-metros.

The MSF program has been in pilot mode for the last 18 months and has been officially launched on Thursday.

Ahead of Amazon India’s Prime Day sale event on 26 and 27 July, sellers from Tier-2 and beyond towns can earn a Prime badge for their listings and benefit with access to millions of prime members, the company said.

“With a higher number of sellers joining ecommerce from Tier-]2 and below cities, we are partnering with third-party service providers who can benefit from the revenues they earn for owning and operating Multi-Seller Flex sites, to enable the former to access Amazon Prime benefits to sell to customers across the country. The launch of MSF will also reduce the time to launch sellers’ products on the marketplace significantly and will also help in eliminating significant operational costs. These benefits can help support and drive the digitization of SMBs that seek to access and service a wide customer base through the online marketplace," said Srikant Sreeram, director, Seller Flex at Amazon India.

With this launch, sellers can engage with the service providers to send their products to the nearest MSF site and make them available to customers across pincodes.

Using the nearest MSF will enable sellers to save on transportation costs associated with sending products to the Amazon Fulfilment Centres (FCs) outside their city.

Thousands of sellers from about 100 smaller towns such as Kottayam, Panipat, Nellore, Valsad, Hisar among others are already using MSF.

“The Multi-Seller Flex program has allowed us to secure a Prime badge for our products. This program has resulted in faster deliveries to customers - which in turn has increased the number of orders we receive. Having an MSF site in Kottayam has limited operational costs associated with transporting and warehousing, enabling us to earn higher profits. In addition, having Amazon’s world-class logistics and support network to manage deliveries has allowed us to focus on product innovation, while our other business processes run seamlessly," said Shruti K Prince, proprietor, Raintech Online Store.

The local entrepreneurs or third-party service providers will also have the option to expand their business by joining other Amazon programs like Amazon Easy to provide assisted shopping experience to customers or set up Amazon Digital Kendra – a brick and mortar resource center to provide micro small and medium enterprises with the opportunity to learn about benefits of eCommerce and avail a range of third party services such as shipping and logistics support, cataloguing assistance, digital marketing services, GST and taxation support.

On Prime Day, over 100 small and medium business are launching over 2,400 new products across categories and 75,000 local neighbourhood offline shops on Amazon will make their Prime Day debut.

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