Ecommerce major Amazon is set to open its logistics infrastructure in India for non-Amazon orders to various online businesses.

This will also make the US ecommerce major now a direct rival to new-age logistics firm Delhivery, Xpressbees, Ecom Express as well as Flipkart's Ekart which recently started onboarding external merchants to ship non-Flipkart orders.

Called Amazon Shipping, direct-to-consumer (D2C) brands, logistics aggregators and other businesses who take direct orders from consumers have been tapped by Amazon to start its vertical to deliver non-Amazon orders.

According to the company, now the ship orders received by customers via own website or via social media or any other means. Amazon is covering over 14,000 PIN codes in India and using its ‘high service levels’ will lead to on-time performance eventually reducing overall logistic cost and improved customer experience.

Customers are being billed for the service under Amazon Seller Services-which runs the India marketplace unit. Amazon Transportation Services (ATS) is one of the key India entities of Amazon which houses the logistics business.

The local shipping services arm of the US ecommerce giant reported total revenues of Rs. 4,581 crore in FY22, a 12.6 percent jump from the year-ago period. Its losses increased by 38 percent to Rs. 95 crore in FY22.

Rajat Tuli, partner at Kearney says, “Amazon has perhaps the best technology (for logistics) and manpower for every pin code. It would be a lot easier for them to offer this shipping service. For brands, too, they can tap into the Amazon network without having to list as a seller and not losing consumer data to the marketplace. They (Amazon) are superiorly placed to do this. But its impact on others will depend on how seriously they expand this here.”