Flipkart opens second warehouse in UP ahead of BigBillionDay sale

Alnoor Peermohamed | Bengaluru Sep 16, 2016 06:48 PM IST
India's largest e-commerce marketplace Flipkart has opened a warehouse in Lucknow, its second in Uttar Pradesh, as it gears up to cater to the spike in demand during its upcoming Big Billion Day sale.

The additional warehouse space will allow the company to do more localised deliveries, decreasing the time it takes for Flipkart to fulfill orders as well as saving it logistics costs of having to ship items from far flung places. The warehouse is spread across an area of 55,000 square feet and can store up to 300,000 products.

"Opening of our second warehouse in UP was singularly propelled by the high demand coming from this region. This warehouse will not only enable same day and next day deliveries for our large base of customers in Uttar Pradesh but also empower sellers to operate without any logistical barriers," said Saikiran Krishnamurthy, Head of Ekart, in a statement.

Flipkart has steadily been increasing the number of warehouses it has across the country, up to 18 now with a total volume of 6.2 million cubic feet. Rival Amazon, which has been working on increasing its warehousing capacity ever since it entered the country three years ago, claims it has the largest storage space among any of the e-commerce companies in India today.

Amazon has 22 warehouses in India spread across 6.2 million square feet in 10 states. It says the strategically placed hubs allow it to not only process orders from across India, but also helps sellers park their stock here. This enables the company to ship products out to customers much faster.

Flipkart, whose market leadership has come under attack from Amazon, is looking to improve its customer experience - which took a beating after it got into a price war with Amazon.

The company announced that it would its business to look at customer satisfaction rather than growth its gross merchandise value, with the results being seen in a reduction in delivery times during the first six months of this year, according to research firm RedSeer Consulting.


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