Snapdeal, India’s leading e-commerce platform opened six new logistic hubs in the country recently. This includes three centres in the NCR region and one each in Lucknow , Hyderabad and Kolkata. According to Jayant Sood the Chief customer experience officer at Snapdeal, new warehouses would be located those places where demand is growing and also allows sellers to hold inventory closer to customers. Vulcan Express, the 100% subsidiary of Snapdeal owns all these fulfilment centres. Snapdeal also recently announced that 80% of its deliveries were made by their Snapdeal fulfilment centres.
All these initiatives are targeted at improving the backend infrastructure which will help the company to improve its delivery times across its product range. With Amazon improving its presence in India by opening new warehouses and Flipkart banking on its ekart logistics, Snapdeal aims to strengthen its logistical infrastructure. Snapdeal has about 300,000 sellers under its belt spread across the country and of late it has initiated a slew of measures aimed at improving the seller’s experience on the platform.
The marketing fee was reduced across many categories recently, in a move to appease to the sellers. Increasing demand for products and historically less than seller logistics network in the country has forced the e-commerce companies to invest in various technologies. And also improving their delivery networks in order to keep pace with the demand and cut down on the delivery times.
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The officer also said that these logistic hubs are designed as integrated facilities which have warehousing, quality control and transportation within one complex. They also provide one-touch facility to sellers, quality inspection, and dispatch and return handling will be done under one. These delivery centres also would enable the sellers to stock their items to meet the ever-increasing demand, especially in the metros where Snapdeal offers two day and Next day delivery options on selected products.
It currently has 27 warehouses and 69 fulfilment centres. With Amazon increasing its investment in India it only becomes imperative to players like Flipkart and Snapdeal to build their distribution networks. Since the festive season is fast approaching, improving delivery times and handling the huge amount of orders during the festive season is a necessary requirement. Since no company in the nation provides end to end delivery solution across all the pin codes, having fulfilment centres, additional warehouses improve the company’s ability to grapple with the surge in orders.