Amazon to standardise packaging for all vendors in India

India:  The orders that are currently fulfilled by Amazon which are sent from the company's warehouse have Amazon-branded packaging. However, nearly a quarter of the vendors on the platform use their own packaging. Under this new initiative, these sellers will be able to buy Amazon-branded packaging materials such as corrugated boxes, thermocol balls and air filled packets on the portal. 

The, packaging used for shipments have become better and stronger to protect the delicate and high value products. The online sellers face high return rates for spoiled merchandise, which is primarily due to problems in packaging. This problem can be minimised with the use of standardised materials such as thermocol balls and air filled packets. With nearly 20,000 sellers expected to buy packaging material online, Amazon will also see a surge in revenues. 

According to TechSci this is a very good initiative to reduce the return rates which arise due to the spoiled merchandise. The other E-commerce portals are also anticipated to follow the trend to reduce the high return rates and offer better customer satisfaction and to improve the supply chain process.

According to recent report published by TechSci Research “India E-Commerce Market Forecast and Opportunities, 2020”, the country’s e-commerce market is projected to grow at a CAGR of more than 36% during 2015-2020. The accessories market is project to grow higher during the forecast period.

The e-tail segment that includes electronics, apparels & accessories, health and personal care, etc., is expected to witness significantly higher market growth compared to e-services segment over the next five years. During 2015-20, the western region is expected to remain the largest e-commerce market in the country. Major players operating in India’s e-tail market include Flipkart, Snapdeal and Amazon.