Amazon India signs MoU with postal department to increase customer reach

Amazon India has signed a Memorandum of Understanding (MoU) with the Department of Posts (DoP) to expand Amazon’s reach to customers, including in more remote locations, the Ministry of Communications announced in a press statement on Friday, October 4, 2024.

Amazon and India Post have a long-standing partnership dating back to 2013, with the e-commerce giant using its extensive postal network to transport parcels across India.

The MoU was signed by Venkatesh Tiwari, Chief Operating Officer, Amazon Seller Services Pvt Ltd, in New Delhi with Kushal Vashist, Director General, Directorate of Parcels, Department of Posts.

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What are the benefits of the MoU for Amazon and the Postal Service?

The statement said the MoU aims to “streamline business operations, share computing power and leverage networks.”

Primarily, Amazon will gain increased access to over 1.6 lakh post offices, which will expand its reach even in more remote parts of the country.

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The statement also said there would be “synchronization of logistics operations, knowledge sharing opportunities and performance,” with both Amazon and the postal division conducting quarterly reviews to monitor the progress of the collaboration.

The Department of Post Office will benefit from increased revenues from parcel shipping and delivery, and may also gain greater expertise in e-commerce logistics, which could help increase the efficiency of its operations.

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