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E-commerce major Amazon has entered into a memorandum of understanding with the Department of Posts under which India Post will facilitate delivery of Amazon’s retail sales through its nationwide service network.
For Amazon, the agreement with India Post offers a cheaper alternative that also does not require any investment.
Such an arrangement will also help the retail giant enhance its logistics capabilities with reduced manpower and support vehicles.
India Posts at present offers the cheapest alternative for parcel delivery business that is plagued by high-cost players.
The agreement signed between the Department of Posts and Amazon Seller Services Pvt Ltd, last week, is part of the government initiative to enhance overall logistic capabilities in the country.
This also opens another area for enhancing business operations, capacity sharing, and network utilisation through public-private partnership.
The agreement builds on an existing partnership that leverages India Post’s extensive network for transmission and delivery of Amazon’s parcels across India.
The MoU opens new opportunities for the partners to explore new frontiers in logistics and business expansion across India.
Key areas of collaboration, as outlined in the MoU, include synchronization of logistics operations, knowledge-sharing, and capacity-sharing.
India Post and Amazon will undertake quarterly review the progress of their collaboration and look for ways to strengthen their partnership.
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