Amazon Pantry (India)- A review from supply-chain point of view [Innovation & Logistics Series]
Date : 27 March 2018
As a part of our Innovation and Logistics series, we are going to cover organizations and their supplychain practices from the Innovation point of view in our weekly article.
Today, we are going to review Amazon Pantry (India), which has been tested by our team over a long period of time to analyse the product catalogue, offers and associated services from the end-user point of view. Amazon Grocery was launched by Amazon India during mid-2016 and it has a presence in 34 cities of India (it does’t serve all PIN codes of 34 cities), where it promises to make next day delivery at your door-steps in a very competitive manner.
Our analysis of Amazon Pantry (India) and associated supply-chain practices is as under:
Service Network- In a short period of time Amazon Pantry has expanded it’s reach to almost all major cities of India. This wouldn’t have been possible without the active support of it’s parent company in USA, who want to capture the Indian market in a very shortest possible time. Their service network is properly planned and does cover more PIN codes as compare to their rivals. In coming time, they are planning to add more PIN codes/cities, which will surely further strengthen their service network and associated market hold.
Product Catalogue- Frankly, we didn’t like their current product catalogue, as it’s doesn’t cover all day-to-day usage products. If product is there, then you will not find availability of multiple brands. In many categories, there are only 1-2 brands per product, which we think is the biggest disadvantage of Amazon Pantry rightnow.
Packaging of orders- Packaging standards of Amazon Pantry are very average. It has been observed that, products are packed in a very random manner; especially heavy, liquid & products with caps. Items like Salt, Sugar, chickpea, flour, oil etc. has been found in loose or damage condition on multiple occasions.
Delivery & Associated Service Experience- Their delivery and associated services are very prompt and as per the commitment (which is the hallmark of Amazon as a brand). We didn’t face any issue while receiving delivery of products (city-Pune). Their delivery vendors are usually local transporters, who know the local areas properly, so there is less confusion while making deliveries. We have observed the delivery issue as one of the biggest challenge for other e-commerce companies here in India, where Amazon is doing really good job.
Amazon Pantry Platform- Amazon Pantry platform is just the replica of Amazon from start to end (except Amazon Pantry branding). We would have appreciated their innovation & creativity, if they would have added some WOW features to differentiate the product within Amazon’s ecosystem, which Amazon has not done. Overall experience of using Amazon Pantry platform was above average.
Cost Advantage- Products available on Amazon Pantry are not competitively priced. Most of the products are having a discounts of 2-20%, which nowadays any retailer offers. As per our analysis, if consumer is ready to drive few extra kilometres, he/she can get better deals from retailers like D-Mart or Big-Baazar anyday. Here, Amazon need to fine-tune their product catalogue and associated pricing, if they want to win in a long term.
Our final rating of Amazon Pantry (India) is as under:
Service Network: 3.5 out of 5
Product Catalogue: 2 out of 5
Packaging of Orders: 2 out of 5
Delivery Experience: 4.5 out 5
Overall User Experience: 3 out of 5
Cost Advantage: 2.5 out of 5
Innovation in supplychain: 2.5 out of 5
Grand Total: 3 out of 5
1 = Poor, 2 = Below Average, 2.5 = Average, 3 = Above Average, 3.5 = Good, 4 = Very Good and 5 = Exceptional & Innovative
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