Amazon Business clocks ₹2,000 crore in customer savings in 2025; sees strong India growth on tier-2 demand
ADVERTISEMENT
Amazon Business, the company’s B2B marketplace, said businesses across India realised over ₹2,000 crore in financial value in calendar year 2025 through cashback rewards, bulk discounts, exclusive deals and GST-linked savings, as smaller firms in tier-2 and tier-3 cities emerged as the strongest growth engine for the platform.
That widening adoption beyond metros now accounts for the bulk of its business in India. Mitranjan Bhaduri, director, Amazon Business, said customers in tier-2 and smaller cities contribute about 70% of the platform’s business, with strong traction coming from markets such as Surat and Ludhiana in the north and west, and Coimbatore and Kochi in the south.
“A major portion of our business is actually from small businesses,” Bhaduri said in an interview, adding that “tier-2 and beyond contributes to approximately 70% of our sales.”
Amazon is positioning its business marketplace not just as an enterprise procurement tool, but increasingly as a sourcing platform for India’s fragmented base of small businesses that often struggle with product availability, price transparency and delivery access.
Over the past five years, Amazon Business’ overall sales in India have grown at a compound annual growth rate of over 40%, while its registered customer base has expanded at 30% CAGR. Bulk sales, the company said, have risen at nearly 35% over the same period. In 2025 alone, sales grew 35% year-on-year, according to Bhaduri.
“We have been very encouraged by the interest and engagement that we have seen from our business buying community,” he said.
Smaller cities are becoming Amazon Business’ biggest market
Bhaduri said the strongest pull from smaller cities is being driven by a basic gap in procurement access. Businesses outside large metros often struggle to source specialised products locally, compare prices across vendors or secure dependable delivery without high logistics costs.
He cited the example of a restaurant in Tinsukia, Assam, which was setting up a Japanese-themed outlet but could not source products such as nori sheets and taiyaki makers locally. “All of these products are products that they get access to under one roof on Amazon Business,” he said. “It democratises that procurement for business customers irrespective of where they might be based.”
The company says its delivery network is helping support that pitch. Bhaduri said Amazon has “close to 100% pin code coverage across India”, while more than 50% of the selection housed in its fulfilment centres can be delivered within a day and over 70% within two days.
The product mix spans common business categories such as PC and IT equipment, stationery, housekeeping supplies, lighting and electricals. For manufacturing clients, purchases also include maintenance, repair and operations products such as safety gear, machine tools, ball bearings and fan belts.
Amazon is also stepping up its enterprise push, even as small businesses remain the dominant segment. Bhaduri said the enterprise business has grown “close to 90%” over the last couple of years as larger companies look to cut vendor sprawl and centralise procurement.
“In some cases,” he said, enterprise buyers have “in excess of 700” suppliers just for office essentials, while their total registered vendor base can be as high as 30,000. Amazon Business is trying to solve that through bulk buying tools, ERP integrations and consolidated invoicing.
For 2026, the company is betting more heavily on artificial intelligence to speed up onboarding and personalise recommendations. Bhaduri said around 80% of new business customers are now being verified in real time, up from a process that earlier took 24 to 72 hours, with Amazon aiming to move that closer to full coverage.