Amazon partners with thousands of mom-and-pop stores in India

TechCrunch | 1/18/2020 | Staff
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Neighborhood stores dot tens of thousands of cities, towns and villages in India. They have survived — and thrived, despite — retail giants’ billions of investment in the country. So now, Amazon is beginning to embrace them.

Amazon said on Saturday it has partnered with thousands of neighborhood stores — locally known as kirana stores — across India to use them as delivery points for goods.

Company - Scenario - Stakeholders - Customers - Shop

The company said it’s a win-win scenario for all stakeholders. “It’s good for customers, and it helps the shop owners earn additional income,” tweeted Amazon founder and chief executive Jeff Bezos .

Bezos’ announcement today, as he concludes his fourth India trip, underscores just how vital neighborhood stores remain for shoppers in the country despite the world’s largest e-commerce giant’s major push into the country and an emergence of heavily backed ecosystem of shopping startups.

Stores - Kinds - Items - Wages - Rent

These mom-and-pop stores offer all kinds of items, pay low wages and little to no rent. Since they are ubiquitous (there are more than 10 million neighborhood stores in India, according to industry estimates), no retail giant can offer a faster delivery. And on top of that, their economics is often better than most. E-commerce is still at an early stage in India, accounting for just 3% of total retail sales, according to industry estimates.

Walmart -owned Flipkart has also arrived at the same conclusion. Last month, it invested $30 million in four-year-old Bangalore-based startup ShadowFax, which works with neighborhood stores in 300 cities to use their real estate to store inventory, and utilize their large network of freelancers for the delivery.

Alliance - Neighborhood - Stores - Amazon - India

Any alliance with neighborhood stores would come in handy to Amazon India and Flipkart...
(Excerpt) Read more at: TechCrunch
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