“The response from the sellers has been very encouraging. They’re excited not just with the fee reduction, but also excited to pass on those benefits to the customers, so customers in the marketplace can enjoy better prices. And at the same time, from a seller perspective, they are able to improve their margin so they are really excited about it,” he reportedly said.
Singh reiterated Amazon’s confidence in India’s long-term potential, highlighting the relatively low penetration of e-commerce in the overall retail market.
“… We have been very sure that for us being in India is a long-term investment… retail and within that e-commerce is just about getting started. It is a single-digit percentage of the overall retail market, and there is tremendous headroom for us to grow,” Singh was quoted as saying.
The report noted evolving trends within the sector, with category-focused platforms accounting for over 60 per cent of online spending, while horizontal marketplaces contribute just under one-third.
Emerging formats such as quick commerce, social commerce, and community-led discovery are also reshaping the landscape by increasing purchase frequency and bringing in users from smaller cities.
Tier 2 and 3 Cities to Drive Next Wave of Growth
E-commerce adoption is expected to broaden further, with the next phase of growth driven by Tier 2 and Tier 3 cities and middle-income consumers.
Singh emphasised that Amazon remains optimistic about these opportunities, focusing on improving speed, selection, convenience, and prices that sellers offer to customers.
“Amazon is very optimistic about the long-term potential in India. There is the demographic dividend, we are a young country. The GDP is growing at a rapid pace. The infrastructure build-out is unprecedented across the world, and we are moving towards a thriving economy where people are beginning to consume a lot,” Singh reportedly elaborated.
Massive Investments in Infrastructure and AI
Amazon has recently announced plans to invest over USD 35 billion across its businesses in India by 2030, in addition to the nearly USD 40 billion already invested. The December 2025 announcement outlined investments in expansion, AI-driven digitisation, export growth, and job creation.
Highlighting the broader growth trajectory, Singh said, “I see this story is going to be about India growing at an even faster pace over the next 10 years or so.”
He added that demand drivers are increasingly visible beyond metropolitan areas, across Tier 2 and Tier 3 cities and beyond, with customers nationwide seeking faster deliveries, greater convenience, wider selection, and competitive pricing.
Amazon Strengthens Logistics with New Air Cargo Routes
“A customer anywhere in the country is going to want faster speeds, more convenience, a wider selection and better prices, and those are the things that we focus on. Our network serves every single postcode in India, right from Havelock island in Andaman to the Majuli river island (located in the Brahmaputra River) in Assam and Ladakh to the Westernmost point in India… for us, the tenants of our operation, that of speed, liability and safety remain the key,” Singh reportedly said.
He noted that Amazon has built a robust logistics ecosystem through partnerships with railways, postal networks, airlines, and in-house infrastructure to ensure last-mile connectivity.
The company is also investing in improving working conditions for its employees across fulfilment centres, sortation hubs, and delivery stations.
Faster Deliveries Expected Across Northeast India
In a recent move to strengthen its logistics network, Amazon India added a new air cargo route connecting Guwahati and Kolkata under its Amazon Air operations. The expansion is expected to significantly enhance delivery speeds in the Northeast.
“With this expansion of the network, customers in the Northeast are going to enjoy speeds up to five times faster than what they’ve seen so far,” Singh said.
The enhanced connectivity will cover all seven northeastern states—Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura—benefiting both consumers and sellers by enabling faster deliveries and broader market access.
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