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Non-metros drive 70-80% of Amazon India's new customers as Amazon Now reaches $1 billion in annualised gross sales
Non-metro cities account for around 70-80 per cent of Amazon India's new customers, said vice-president Saurabh Srivastava. Amazon Now has reached $1 billion in annualised gross sales, and Amazon is investing more than Rs 2,800 crore in its India network in 2026.
The numbers
Figures from Business Standard,
| New last-mile delivery stations across 118 cities: | 150 |
|---|---|
| New fulfilment centres launched: | 20 |
| Amazon Now cities of operation: | 120 |
| Amazon Now average order value: | Rs 550 |
Why it matters to operators and investors
Non-metros now supply 70-80% of Amazon India's new customers and Amazon Now has reached $1 billion in annualised gross sales across 120 cities, so rivals should weigh Tier-II and Tier-III delivery speed and assortment against Amazon's 20 new fulfilment centres and 150 last-mile stations.
What to watch next
- Amazon announces Amazon Now in more cities than the current 120
- Launch of the 20 new fulfilment centres and 150 last-mile stations across 118 cities on schedule
- Amazon repeats or raises the 70-80% non-metro share of new customers, or the 70% Tier-II and Tier-III share of new Prime members, in later updates
- Rival quick-commerce or marketplace players announce Tier-II and Tier-III expansion or delivery-speed upgrades
- Regulatory notices or policy changes affecting dark stores or marketplace operations
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Amazon is likely to extend Amazon Now beyond its current 120 cities, using the new last-mile stations as the base for faster delivery in smaller markets.
- Expect Amazon to push Prime sign-ups in Tier-II and Tier-III cities, which already supply 70% of new Prime members, with regional-language and local-assortment campaigns.
- Flipkart and the quick-commerce specialists may step up their own small-city expansion and fast-delivery offers to protect share as Amazon takes its network outside the metros.
- Amazon is likely to announce more fulfilment and last-mile capacity once the 20 new fulfilment centres and 150 last-mile stations are running, possibly adding to the Rs 2,800 crore 2026 outlay.
- Regulators and state authorities may pay closer attention to Amazon's dark-store and last-mile operations as the quick-delivery footprint grows.
The counter-case
The case against this reading — not reported by the source.
The headline rests on one executive's claim, and it is a share of new customers, not a count. If metro acquisition has slowed because those markets are saturated, then 70-80% of new customers from non-metros is arithmetic, not a strategic win. Non-metro shoppers can also mean smaller baskets, more cash-on-delivery and returns, and higher cost-to-serve, so growth could dilute profitability. The $1 billion for Amazon Now is annualised gross sales, a run-rate extrapolated from a recent period. It is not revenue or profit, and quick commerce usually depends on dark-store density and heavy subsidies. Presence in 120 cities says little about depth or order frequency. The Rs 2,800 crore investment (20 fulfilment centres, 150 last-mile stations across 118 cities) is a plan, not a result, and may be defensive spending to keep pace with rivals.
The source
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