Ease of Doing Business for MSMEs: Ahead of Prime Day, Flipkart’s rival Amazon India Thursday announced the launch of fulfillment centres called Multi-Seller Flex (MSF) operated by third-party service providers who are local entrepreneurs. Amazon said it would partner with local entrepreneurs under the programme to provide sellers in Tier-II and beyond towns with storage for their inventory and processing of customer orders while Amazon will provide shipping and logistics support for seller shipments. Amazon added sellers would be able to engage local entrepreneurs to send their products to the nearest MSF centre and make them available to customers; and would also enable “sellers to save on transportation costs associated with sending products to the Amazon Fulfilment Centres (FCs) outside their city.”
The programme would allow such sellers “to earn a Prime badge for their listings. Sellers using MSF will benefit from this launch with access to millions of Prime members,” Amazon said ahead of its Prime Day on July 26 and 27. “With a higher number of sellers joining ecommerce from tier 2 and below cities, we are partnering with third-party service providers who can benefit from the revenues they earn for owning and operating Multi-Seller Flex sites. The launch of MSF will also reduce the time to launch sellers’ products on the marketplace significantly and will also help in eliminating significant operational costs. These benefits can help support and drive the digitization of SMBs that seek to access and service a wide customer base through the online marketplace,” said Srikant Sreeram, Director, Seller Flex at Amazon India in a statement.
Local entrepreneurs, according to Amazon, would be able to generate additional revenue streams by engaging with sellers and join other Amazon programs like Amazon Easy to provide assisted shopping experience to customers or set up Amazon Digital Kendra – a brick and mortar resource center to provide MSMEs with the opportunity to learn about benefits of e-commerce. Over 100 SMEs including startups and brands, women entrepreneurs, artisans and weavers would be launchin over 2,400 new products across categories while more than 75,000 local neighbourhood offline shops on Amazon will make their Prime Day debut.