Amazon to invest ₹2,000 cr in India; adds 30 delivery stations ahead of Prime Day

Amazon India is doubling down on its logistics network with a fresh investment of ₹2,000 crore this year and plans to open 30 new delivery stations across the country—just in time for its flagship Prime Day event. The move, Abhinav Agarwal, director, Amazon Prime India, says, is part of a broader strategy to reinforce its position as India’s largest fulfilment network and improve delivery speeds across markets.

Agarwal underlined the company's "long-term commitment" to catering to India's diverse consumer base. Prime Day, which is in its ninth edition this year, continues to be a major event for both customers and sellers. Amazon is banking on its three key pillars—new product launches, great deals, and exclusive entertainment—to drive engagement.

Amazon is also deepening its tiered membership approach to better serve a broader base. India is the only market globally to offer three distinct Prime tiers—Shopping Edition at ₹399/year, Prime Lite with limited video benefits, and the all-inclusive Prime plan at ₹1,499/year. “These innovations came from India, and the response from customers has helped us scale these up nationally,” Agarwal said.

“When we launched Prime, it was only a shipping and shopping programme—one of the first in India. Four to five months later, we added Prime Video. Two years after that, we added music. With music, Amazon took a very different approach in India. Globally, we offered only a shuffle mode to Prime members, but in India, we opened the full catalogue. That was so successful here that many other countries have now adopted it.”

On the delivery side, the company is continuing to expand its quick commerce service, Amazon Now, in select pin codes in Bengaluru and Delhi. “We offer everything from 4-hour sub same-day delivery for 20,000 bestsellers to next-day delivery on over 40 lakh products. It’s all about building for varied customer needs, whether it's a laptop or a bag of fresh produce,” Agarwal added.

Sales data suggests strong momentum from non-metro markets. “In the last Great Indian Festival, 65-70% of Prime member sales came from tier 2 and tier 3 cities,” said Agarwal. “A big part of our delivery station expansion is aimed at improving speeds in those regions.”

For Amazon’s seller ecosystem, which now includes 16 million entrepreneurs, Prime Day offers a unique business opportunity. Amit Nanda, director, Selling Partner Services at Amazon India, said that the event plays a pivotal role in launching new products and testing promotions.

“Most sellers look at Prime Day as a growth platform,” Nanda said. “It gives them a shot at launching new products, trying out new promotions, and reaching high-intent Prime customers. It’s one of the most cost-effective ways to drive trials.”

According to Nanda, e-commerce is leveling the playing field for small businesses. “You no longer need to invest in television commercials or build an offline distribution network to reach customers. Sellers can start small, advertise digitally, and scale as they learn what works. That’s why e-commerce, and especially Prime Day, is so empowering for small entrepreneurs.”

Amazon also noted a rise in demand for premium products like smartphones above ₹30,000, large appliances, and even two-wheelers. “Who would’ve thought two-wheelers would sell online?” Agarwal remarked. “But we've seen strong traction, and now have more than 18 two-wheeler partners, including Bajaj, Hero, and Harley-Davidson, with launches exclusive to Prime Day.”

Vernacular accessibility on the platform combined with expanded fulfilment infrastructure and payment options like no-cost EMIs and bank offers, Amazon is continuing to grow deeper into India’s heartland.

“Whether it’s through fast deliveries, regional language support, or diverse Prime plans, our focus remains on delivering value and convenience to Indian consumers,” Agarwal said.