Tuesday, July 27, 2021

Amway ramps up online orders; eyes 5x hike in-home delivery

Amway India – a direct selling major – optimistically stated that it plans to scale up its home delivery network by 5 times. It has earmarked Rs 30 cr for strengthening its workforce in the same direction. The decision comes in line with the market trends noted by a major shift towards online ordering amid the pandemic.

The number of home deliveries has already set soaring. As per the statement issued by Sanjeev Suri, Vice President — Global Omni Channel Logistics, Amway India, the current figures for home delivery are 2.8 lakh which accounts for 70-80% of total sales volume. The FMCG player is now looking ahead to bolstering its home delivery & logistics network to support the rising numbers. The integration from offline to online [O2O] was initiated earlier this year before the pandemic ravished India. Consequently, the company has witnessed a significant upward trend in home deliveries from 33.6% in February 2020 to 70% currently.

Amway foresees the online orders to reach a peak of 5-6 lakh orders per month by year-end. The rapid shift to online shopping alternatives and changes in consumer behavior patterns are cited as reasons for Amway being positive about its targets.

Amway strives to achieve its goals by –

  • Ensuring a seamless online shopping experience for its customers
  • Smooth delivery of orders
  • Strengthening supply chain & logistics
  • Investing in warehousing, manpower, automation, and other back-end processes

This is a clear reflection of a new world order where consumers demand everything at a click of a button. The development is evident where Indian consumers are now embracing e-commerce.

Future plans –

  • To meet the demands of the evolving trends, Amway intends to launch same-day delivery and online return services by early 2021
  • Amway is also looking forward to adding 40% additional third-party manpower across India to support and fulfill the online demand
  • At present, the company delivers to 8000 pin codes, expected the same to increase to 15000 pin codes

Amway has 18 local/national delivery partners. It plans to add more players and leverage the network. All eyes are now set on Amway India to check if its future strategy will be a hit!

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