The closer we get to the customer, the faster we can deliver,” he says.This also allows customers to shop throughout the day, rather than having to hop online in the morning to reserve an afternoon or evening time slot, for example. In the meantime, we are investing significantly in growing our reach by setting up more regional warehouses and roping in more suppliers.
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“Same-day deliveries might not be available on all items due to logistics constraints but we will continue to offer free shipping. However, Rahul Chari, VP for supply chain technologies with Flipkart, seems optimistic and says that free shipping is not an option but a necessity. “These days, the question on every e-tailer’s lips is: When are we going to see the money?” says Bablu Tewari, COO for e-commerce and international business with Gati.
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For instance, a Nikon lens with an MRP of Rs 16,000 is being offered on Flipkart at a subsidized rate of Rs 8,000. Large online retailers like Myntra and Flipkart have been constantly incurring heavy losses due to the current online shopping model, which is based on discounts and multiple offers. Free shipping is just one of the problems dogging the country’s booming e-commerce business. It's just not sustainable,” says Gati's Singh. Customers buying those items will now have to pay extra for normal delivery that takes usually four to five days. On Amazon India, certain items have already been slapped with shipping charges.
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After curtailing express-delivery services, e-tailers might soon turn their attention to free-shipping policies that are being blamed for eating into their profits. “We are test piloting the model in Mumbai,” Deepa Thomas, spokeswoman for eBay India told TOI. Similarly, eBay India, which jumped into the express-delivery bandwagon after Amazon and Flipkart, has limited its nine-hour delivery service to only one city. After being acquired by Flipkart, the Bangalore-based online retailer of fashion products has decided to stay away from the same-day-delivery trap and is set to launch a ‘next-day-delivery’ service. “Same-day deliveries are not feasible in India given the current supply chain issues,” says a senior executive from Myntra, who did not wish to be named. While the sheer number of goods being shipped due to online sales is growing by over 30% every month, growth of express deliveries continues to remain static. Express deliveries constitute 5% of the four-lakh goods that are shipped daily by online retailers, he says. According to Singh, there has been no spike in demand for same-day deliveries. Moreover, same-day delivery costs around four to five times more than normal delivery because goods have to be shipped by air,” says Diljeet Singh, chief sales and marketing officer with Gati, one of the country’s largest logistics firms, which delivers for eBay and Amazon. “Online retailers are not promoting express-delivery services since they don’t have a strong supply-chain network. After assuring to change the dynamics of online shopping in the country, same-day delivery services seem to have mysteriously disappeared from most shopping websites.
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NEW DELHI: When online retailers including Amazon and Flipkart launched express-delivery services promising to deliver goods on the same day at an extra cost, little did they realize that within a few months they would end up with hundreds of disgruntled customers.