Amazon India is setting up five more warehouses in cities including Mumbai, Gurgaon and Bengaluru. The ecommerce giant looks to strengthen the delivery capabilities amid stiff competition from rivals like Flipkart. With the addition of these facilities, Amazon will have 67 Fulfillment centers across 13 states having a storage capacity of more than 20 million cubic feet. The new fulfillment centers will be set up in Mumbai, Bangalore, Gurgaon, Kolkata and Vijayawada in order to support the increased customer and seller demand from the respective cities. The centers will be operational before the festive season of 2018.
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Fulfillment centers are warehouses where sellers can stock their inventory. This helps them save the money by replacing their capital expense with low variable cost and pay only for the storage space they use and the orders fulfilled by Amazon. With this expanded infrastructure, Amazon will be able to offer an even better Prime experience to the customers. The centers will be enable small and medium businesses to fulfill tens of thousands of orders in a cost effective manner. There are more than 40 million products available with them for immediate shipping through the network of Amazon fulfillment centers in the country. Amazon has committed an investment of USD 5 billion in order to expand infrastructure and the technology platform in the country.