Amazon is deepening its long-term commitment to India, viewing the market as still in the early stages of e-commerce adoption with significant headroom for growth driven by favourable macroeconomic trends and rising consumption.
Abhinav Singh, Vice President – Operations, India and Australia at Amazon, stated that the company has expanded its zero referral fee programme to 12.5 crore products, up from 1.2 crore items in 2025, adding that the initiative has received strong traction from sellers.
As per a Moneycontrol report, he stated that sellers have responded positively not only to reduced fees but also to the opportunity to pass on cost benefits to customers, resulting in improved pricing across the marketplace. He added that the revised structure is also helping sellers improve their margins.
Singh stated that Amazon continues to view India as a strategic long-term investment destination, noting that e-commerce currently accounts for only a single-digit percentage of the overall retail market, leaving substantial room for expansion.
He further stated that India’s demographic dividend, rapid GDP growth and increasing consumption levels underpin the company’s optimistic outlook for the market.
According to a report by Boston Consulting Group, India’s e-commerce market, currently valued at $120–140 billion, is projected to reach $280–300 billion by 2030, with an estimated shopper base of nearly 440 million.
The report stated that e-commerce would still account for only 7–8 per cent of total consumer spending by 2030, indicating continued growth potential.
It further stated that category-focused platforms contribute more than 60 per cent of online spending, while horizontal marketplaces account for just under one-third.
The report also highlighted the emergence of quick commerce, social commerce and community-led discovery models as key drivers of adoption, particularly in smaller cities.
Amazon has committed to investing more than $35 billion in India through 2030, in addition to nearly $40 billion already invested in the country. The company stated in December 2025 that the fresh investment would focus on expansion, AI-led digitisation, export growth and job creation.
Singh stated that growth is increasingly being driven by Tier 2 and Tier 3 markets, where e-commerce adoption continues to accelerate.
The company has developed a nationwide logistics network covering all postcodes, including remote locations such as Havelock Island in the Andaman and Nicobar Islands and Majuli in Assam.
He stated that Amazon has partnered with Indian Railways, the postal network and airlines, alongside building its own infrastructure, to strengthen last-mile delivery capabilities.
Amazon has also expanded its air cargo operations, recently adding a Guwahati–Kolkata route to its Amazon Air fleet to enhance connectivity in the Northeast.
The expansion is expected to improve delivery speeds by up to five times across states including Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura, Singh stated.
He added that improving speed, selection, convenience and pricing remains central to Amazon’s customer strategy.
The company is also implementing measures to enhance working conditions for employees across its fulfilment centres, sortation hubs and delivery stations, as part of its broader operational improvements in the country.
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