Amazon set to merge its seller and transport services in India

The development comes at a time when Amazon is facing increasing challenges in India, including heightened competition from domestic players like Flipkart and Reliance’s JioMart, as well as regulatory scrutiny over its business practices

As part of a broader strategy to streamline its e-commerce and logistics operations in India, Amazon is reportedly merging its two key operational entities, Amazon Seller Services and Amazon Transport Services. The development, confirmed by sources close to the matter and initially reported by Entrackr, highlights Amazon’s bid to consolidate its resources and enhance efficiency in one of its most significant markets.

Amazon Seller Services, the transferee in the merger, has been the backbone of Amazon’s marketplace operations in India since its launch in 2013. It enables millions of third-party sellers to list and sell their products on the platform, contributing significantly to Amazon’s dominance in India’s e-commerce sector.

On the other hand, Amazon Transport Services, the transferor, was established in 2015 as the company’s logistics arm, managing last-mile delivery, transportation, and supply chain operations to support the growing demand for fast and reliable e-commerce services.

The merger process includes determining a share exchange ratio between the two arms, a task entrusted to PwC, the appointed registered valuer. A meeting with unsecured creditors has been scheduled for April 14 to discuss the proposed consolidation and address any concerns.

A strategic move amid heightened competition

This strategic move comes at a time when Amazon is facing increasing challenges in India, including heightened competition from domestic players like Flipkart and Reliance’s JioMart, as well as regulatory scrutiny over its business practices. Recently, Amazon decided to shut down its refurbished goods platform, Renewed, for external sellers, citing operational complexities and shifting priorities.

The merger, as per industry analysts, could lead to improved operational synergy, cost optimization, and better alignment between Amazon’s marketplace and logistics divisions. By integrating these functions, Amazon aims to strengthen its supply chain, enhance seller and customer experiences, and maintain its competitive edge in India’s rapidly evolving e-commerce landscape.

The development reflects Amazon’s long-term vision of creating a more cohesive and agile operational structure in India, ensuring it remains a dominant player in the region’s digital economy. This consolidation could serve as a blueprint for further restructuring efforts in other markets, reinforcing Amazon’s global strategy of integrating its diverse business units for greater efficiency and growth.