Amazon Prime delivered more than 55 crore products with same-day or next-day delivery in India in 2025, marking its fastest-ever speeds and a 40% year-on-year jump in expedited shipments. The surge was not confined to metros. Nearly 70% of new Prime sign-ups during the year came from Tier 2 and Tier 3 cities, underlining how the subscription programme is increasingly being driven by non-metro demand.

“2025 was another strong year for Amazon Prime,” said Abhinav Agarwal, director and head of Amazon Prime India. The growth in speed has been matched by a geographic shift in sign-ups. “Prime is no longer a metro phenomenon. It’s a Bharat phenomenon,” he added.

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The company expanded its fast-delivery coverage to over 850 additional cities during the year. Same-day orders in metros grew 65%, while Tier 2 and Tier 3 cities saw 50% growth in next-day deliveries. Amazon now offers next-day delivery in more than 150 cities, with a million products available for same-day delivery and another four million eligible for next-day shipping.

Savings beyond the subscription fee

Prime’s value proposition continues to hinge on savings and engagement. On average, Prime members in India saved more than twice the cost of their annual membership through shopping benefits alone, excluding the value of Prime Video and Amazon Music. The top 10% of members saved as much as eight times their membership fee.

Savings stem from waived delivery charges, Prime-exclusive deals and coupons, early access to sales, and benefits such as 5% cashback on the Amazon Pay ICICI co-branded credit card.

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“On average, Prime members saved double the amount of their membership price, even when we exclude cost of video or OTT service or music,” Agarwal said, referring to the ₹1,499 annual fee for the full Prime plan.

He added that the most engaged members see outsized value. “Our best Prime member, the top 10% Prime members who are most deeply engaged, they save eight times the membership price.”

To support faster fulfilment, Amazon invested about ₹2,000 crore in its operations network over the past year, upgrading infrastructure and expanding capacity. In smaller cities, the company reported roughly 40% year-on-year growth in two-day delivery speeds.

Prime Day 2025, a three-day event, was its biggest yet. Members placed over 18,000 orders in a single minute, more than 50% higher than Prime Day 2024. In Tier 1 cities, tens of thousands of products were delivered within four hours. Same- or next-day deliveries in metros doubled year-on-year during the event, while deliveries within two days in Tier 2 and 3 cities rose 1.8 times.

India-first tiers and AI backbone

India was the first Amazon market to introduce three Prime tiers - Prime at ₹1,499, Prime Lite at ₹799, and Prime Shopping Edition at ₹399 - designed to cater to varying affordability levels. Agarwal said the move was shaped by India’s income diversity. “India is the first locale to launch different tiers of Prime,” he said, adding that the response over the past 18 months has been strong enough for Amazon to consider replicating the model in other markets.

Beyond commerce, about four out of five Prime members regularly use Prime Video, and nearly one in three engages with Amazon Music. Prime Video in India now offers content in 10 regional languages, reflecting a sharper focus on localisation.

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Artificial intelligence underpins much of this expansion. Amazon uses machine learning for demand forecasting, inventory placement, address validation and logistics optimisation. “As scale increases, we benefit from economies of scale,” Agarwal said, noting that AI-driven efficiencies help balance faster delivery and lower costs in a price-sensitive market.

Looking ahead to 2026, Amazon plans to deepen investments in speed, savings and entertainment. Its quick-commerce offering, Amazon Now, currently available in Delhi NCR, Bengaluru and Mumbai, has seen Prime members who use it increase their visit frequency threefold.