Focus on speed, wider product selection and stronger everyday value are set to drive the next phase of growth for Amazon Prime in India, as the company deepens investments in logistics, membership offerings and customer experience across the country. A top official told BW Businessworld that the platform is seeing rising engagement from both metros and smaller towns, with faster deliveries and flexible tiers helping expand its reach and usage.
In an interview, Abhinav Agarwal, Director, Head of Amazon Prime India, stated that the strategy includes continued investments in fulfilment infrastructure, broader delivery coverage and initiatives aimed at making the membership more relevant to a wider set of customers.
“Prime is never finished. Our focus remains on expanding selection, making Prime even faster, enriching the membership with high-quality entertainment, and extending Prime’s reach to even more customers. As Prime’s love continues to grow across Bharat, we will keep innovating to ensure it remains the best value in shopping and entertainment for customers across India,” Agarwal noted.
Rising Engagement Across India
The push toward faster fulfilment has been central to the platform’s growth strategy in India, with delivery speeds improving significantly across both large cities and smaller towns. Agarwal added that in 2025 alone, more than 55 crore items were ordered with same-day or next-day delivery in India, nearly 40 per cent year-on-year growth. The company expanded the same-day and next-day delivery coverage for Prime members by over 850 cities.
“We invested Rs 2,000 crore just in 2025 to improve same-day coverage for our members in metros and also to improve speeds in tier 2, 3 cities. Tier 2, 3 cities are very important for us as 70 per cent of new Prime members are actually coming from those areas,” he explained.
As delivery timelines become more predictable, shopping frequency has increased, with same-day orders in metros rising 65 per cent and next-day deliveries in tier-II and tier-III cities growing 50 per cent, he shared.
Tiered Membership Expands Reach
The introduction of multiple membership tiers has played a key role in widening adoption, particularly among price-sensitive and first-time users. The Director pointed out that India is currently the only marketplace globally where the programme offers multiple pricing options designed for different customer needs.
“This is positioned towards customers who might not be ready yet to consume our entertainment offering. But they love Amazon. They love shopping on Amazon and they want to improve their experience on Amazon. That was first tier that we launched. The second tier we launched is Prime Lite. This is positioned towards customers who do not have a lot of devices. They do not need multiple devices. Maybe they do not need music,” he explained.
The company now offers three plans: the full membership priced at Rs 1,499, Prime Lite at Rs 799 and the Prime Shopping Edition at Rs 399, aimed at customers seeking different combinations of shopping and entertainment benefits.
“The whole idea of a bundle here is to deliver value to members each and every day. Yes, there are some sort of special days like a Prime Day, where it is an event only for members or you have early access to sale events. That is also special. But we do not want to just limit ourselves and the value we add to those days,” he added.
Increased Investments
Continued investments in logistics and fulfilment infrastructure are helping strengthen delivery capabilities across the country. The company invested around Rs 2,000 crore in 2025 to expand its network, improve same-day delivery coverage in metros and enhance delivery timelines in tier-II and tier-III markets.
“On average, Prime members in India saved more than two times the cost of an annual Prime membership, with the top 10 per cent members saving more than eight times their Prime membership cost. To support this shift, we have continued to invest in our fulfilment network, expanding capacity and reach,” he explained.
“With these investments, we now have around 40,000 products available for delivery in under four hours in our top metros,” he said. The company has also seen a sharp rise in two-day deliveries in smaller cities, reflecting the growing demand for faster and more reliable fulfilment beyond metropolitan markets.
Quick Commerce Push
The company is also expanding its quick-commerce play as it looks to make the membership more embedded in everyday consumption. With Amazon launching Amazon Now in select cities, members can now order daily essentials and receive them within minutes. Agarwal said early consumer response has been strong and is already influencing shopping behaviour.
“When a Prime member starts using Amazon Now, their frequency of visiting Amazon increases three times,” he noted, adding that the company plans to “double down and triple down” on the offering going ahead. Currently available in Delhi-NCR, Bengaluru and Mumbai, the service is expected to become a bigger part of the overall membership experience.
Beyond shopping and delivery benefits, entertainment continues to play a significant role in driving engagement with the membership programme. The bundled offering of video, music and other digital services has helped the platform, he added.
“Different customers have different journeys in how they evolve with Prime,” he said. Many users who initially sign up for faster deliveries eventually engage with entertainment offerings as well, while others discover shopping benefits after joining for content. Today, about four in five Prime members regularly use Prime Video, he added. |
