Amazon on Thursday said it is setting up five more distribution centers in the same number of urban communities including Bengaluru, Gurgaon and Mumbai, as Amazon looks to fortify its delivery abilities in the midst of rivalry from rivals like Flipkart.
With the expansion of these new facilites, Amazon will have 67 fulfilment centres (FCs) in 13 states, with an aggregate storage capacity of more than 20 million cubic feet, it said in a statement.
"These new FCs will be set up in Bangalore, Mumbai, Gurgaon, Vijayawada and Kolkata to help increased client and seller demand from these areas," it included.
The organization said these FCs will be completely operational before the festive season of 2018 however didn't disclosed any investment details.
FCs are warehouses where merchants can stock their inventory. They can save money by replacing their upfront capital cost with low variable cost and pay only for the storage space they utilize and the order Amazon fulfils.
"With the expansion of this extended infrastructure, we will have the capacity to offer better prime experience to the customers ," Amazon India VP Customer Fulfillment Akhil Saxena said.
Amazon.in's network of FCs will empower a huge number of little and medium businesses to fulfil their orders in a cost-efficent manner, he included.
At present, more than 40 million items are available for immediate shipping through the networks of Amazon's FCs in India, the statement said.
Amazon, which has conferred investment of $5 billion, has been pumping in funds to expand infrastructure and technology platform in the nation.
Recently, Amazon CEO Jeff Bezos had said Amazon India is the fastest developing marketplace in the country.
