Paytm Mall Investing $35 Million In Logistics Tech | TechTree.com

Paytm Mall Investing $35 Million In Logistics Tech

An investment of $35 million will enable the site to boost its infrastructure and logistics technology to serve customers better.

 

We live in a world where people are increasingly accustomed to not having to wait very long for the things they want. From food served to people passing by drive-through windows to new smartphone screens installed in a few hours, consumers can get near-instant gratification.

That reality was not lost on Paytm Mall, an India-based online shopping app and website boasting merchandise ranging from electronics to clothing.

The already extremely popular website, which only launched in February, recently made a move that seems certain to make it even more in demand. An investment of $35 million will enable the site to boost its infrastructure and logistics technology to serve customers better.

Building a Better Logistics Network

Unlike other mega one-stop shopping websites such as Amazon, Paytm Mall does not have its own logistics branch.

However, one of the coming improvements involves connecting with local partners and providing same-day and next-day deliveries for products within the website’s electronics and appliances categories for people in 25 cities.

Soon, shoppers will be able to get those speedy shipping rates for additional merchandise in more places.

Mutual Advantages for Merchants and Convenience-Craving Consumers

This news isn’t only good for consumers. It’ll also reportedly allow local merchants to enjoy substantial savings on logistics costs by circumventing inner-city providers that may drive up costs. Furthermore, those entities can provide people with an additional way to get the merchandise they want or need without unnecessary delays by using the Paytm Mall website.

This arrangement seems similar to the Fulfilled by Amazon program that permits third-party merchants to use Amazon’s warehouse space and logistics resources to ship products to customers more rapidly than through in-house resources alone.

Individuals taking advantage of that service are accustomed to shopping through the internet and are comfortable providing payment information despite seeing little more than images and product descriptions.

The same is true for an Australian online store called The Iconic. Advertising the tagline “Shop Now, Wear It Tonight,” the website offers three-hour delivery for Sydney residents on weekdays within a 10-hour timeframe for top styles of clothing and shoes. Consumers can pick that option at the checkout and pay only $9.95 extra for the super-fast delivery.

In-Store Shopping Is Still Prominent in Some Parts of the World

Based on the above examples, it might seem people would always rather shop online than in stores, especially if it results in fast delivery. Indeed, a growing number of destinations make it possible to get online goods very efficiently. The Paytm Mall example also shows competitors what’s possible without a dedicated logistics arm.

However, consider that going to a store in person is potentially even quicker. An individual could theoretically have a product in an hour or less, including transportation time. In the U.S., 62% of shoppers prefer to shop in stores, and analysts believe for that demographic group, opportunities to interact with store associates are even more desirable than fast deliveries.

After all, getting a product in a few hours after ordering it online doesn’t seem like such a good thing if it turns out the item — an article of clothing, for example — is too small, feels rough against the skin and has an extraordinarily low-cut neckline that wasn’t evident on the website.

Apps Could Enhance Experiences for In-Person and Online Shoppers Alike

Paytm Mall also has an app that joins several other similar shopping helpers available on the Indian market. However, some apps could also simplify things for people who intend to shop in person, as well.

For example, one could include a video or text chat function that lets a consumer get in touch with an associate to verify a product is in stock before driving to the store.

Alternatively, an app might offer a real-time, 360-degree view of a store, letting a person decide if now is a good time to shop for the item or if it’s better to wait until the premises is less crowded.

As you’ve just learned, many countries are doing what’s necessary so customers can get products online and have them delivered without long waiting periods.

Although those efforts are worthwhile, they don’t match the preferences of all shoppers.


TAGS: Paytm

 
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