Amazon India bets big on Tier-2, Tier-3 cities

Samir Kumar, Country Manager, Amazon India

After returning to helm Amazon’s India operations, Country Manager Samir Kumar revealed that 70 per cent of Amazon’s new customers now come from Tier-2 and Tier-3 cities.

“The speed and quality of service they were getting weren’t satisfactory compared to metro cities,” Kumar acknowledged. “So, we’re putting serious investment into fixing that — to improve speed, experience and reliability.”

The e-commerce giant is poised for an aggressive expansion of its quick commerce service following ‘very encouraging results’ from its Bengaluru pilot.

“Stay tuned. We are going to go big,” Kumar told businessline in an exclusive interview, confirming that Amazon is preparing to challenge established players like Blinkit, Zepto, and Swiggy Instamart in the rapidly growing segment despite being seen as a late entrant.

The move comes as part of Amazon’s renewed push in India, backed by a massive $15 billion investment commitment to be deployed by 2030, on top of the $11 billion it has already invested in the country over the past decade.

Central to Amazon’s India strategy is its seller ecosystem, which has grown to 1.6 million businesses nationwide. The marketplace has simultaneously focused on reducing fees for sellers to enable them to offer more affordable selection, particularly for value-conscious customers in smaller towns.

Perhaps the most ambitious target revealed by Kumar is Amazon’s goal to enable $80 billion in exports from India by 2030 through its Global Selling programme, which already supports 150,000 Indian sellers reaching international markets.

When asked about India’s importance in Amazon’s global portfolio, Kumar was unequivocal: “India remains one of Amazon’s largest and most strategic e-commerce markets globally.”

On job creation

He pointed to the one million direct and indirect jobs already created, with a target of reaching two million. “The scale of what we’ve built is enormous, but what hasn’t changed is the energy and focus on transforming how India buys and sells.”

Kumar emphasised that the company is still in its early days. “There’s still so much potential we haven’t fully tapped into yet,” he said. “We have a team of innovators constantly exploring new ideas and asking critical questions,” he added.

With its massive investment plans, quick commerce expansion, and renewed focus on smaller cities and towns, Amazon is signalling that India remains central to its global ambitions despite mounting regulatory challenges and fierce local competition.

Published on May 6, 2025