MUMBAI: Amazon may be testing drones to drop off packages but in India, the world's biggest ecommerce company is looking to try out something decidedly low-tech that could give it an unbeatable edge on deliveries.
Its secret weapon? The postman. Amazon already sends packages by India Post but now it wants to use the channel to collect payments from recipients as well, using the cash-on-delivery model. Amazon has started a pilot with India Post to test this system, which could help it reach deep into India's hinterland, according to two people familiar with the matter.
A partnership between India Post and Amazon would intensify competition in the still-nascent but burgeoning ecommerce industry if the pilot proves to be a success.
Amazon would gain reach while India Post would benefit from the company's aggressive growth plans. India Post has more than 150,000 post offices in India, out of which 89% are in rural areas. "We are trying to add capabilities like cash on delivery and reverse logistics. Consumers don't want to make an upfront payment. We are developing software to start the cash-on-delivery service with Amazon," said a senior India Post official who did not want to be identified.
Source:http://articles.economictimes.indiatimes.com
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