In 2015, e-commerce leased 3.6 million sq ft warehouse space

From ET Realty

BENGALURU: E-commerce majors Amazon and Flipkart have more than doubled warehouse or fulfillment space as more and more sellers come on board to benefit from the online shopping boom in the country.

The online marketplace companies have together rented about 3.6 million sq ft of warehouse space in the country, half of which was added in 2015 alone. “We have 21FCs across 10 states with a total of over 2 million-square-feet of space. This is the largest storage capacity and warehouse infrastructure created by any e-commerce company for sellers across India,” said Akhil Saxena, director operations, Amazon India.

Amazon India added 13 new FCs in 2015, almost doubling storage capacity to nearly 5 million cubic feet. The US-headquartered company launched its biggest fulfilment centre (warehouse) in Kothur, Mahbubnagar district, in the middle of last year, spread over 2,80,000 sq ft.

“We have seen significant traction from SMEs across the country and are witnessing over 250% growth in sellers y-o-y. This infrastructure build-up has helped thousands of sellers reach millions of new customers across the country and has enabled us to offer faster and quicker delivery of products to more pin codes,” said Gopal Pillai, director – seller services, Amazon India.

Flipkart, on the other hand, took it total warehouse space to 1.6 million sq ft by the end of 2015, and has also set up its largest fulfilment centre in the country at Gundla Pochampally, on the outskirt of Hyderabad. Spread over 220,000 sq ft and with a storage capacity of 589,000 cubic feet, this is Flipkart’s 17th warehouse in the country.

The company plans to invest $300-500 million over the next five years to set up warehouses across India. “The company currently operates 16 warehouses and plans to add 50-100 warehouses over the next four-five years. It currently has eight million shipments and over 50 million registered users on the platform,” said a spokesperson for EKART, the logistics arm of Flipkart. Flipkart is targeting sales worth $10 billion on its platform by the end of 2016.

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