Amazon Bets On GST Reforms, Supply Chain Push To Drive Record Festive Sales
Amazon expects a significant spike in demand across product categories, particularly in TVs, air-conditioners, home appliances, apparels, and smartphones.
Amazon India is gearing up for its flagship festive sale, beginning Sept. 23, just a day after the government's new GST reforms kick in, with a combination of tax reforms, supply chain investments, and seller enthusiasm expected to drive one of its strongest festive seasons yet.
Saurabh Srivastava, Vice President, Categories, Amazon India, said the recent GST reforms had come "at the right time" and described them as "game-changing" for both sellers and customers.
"The government has enabled small sellers to keep inventory across states at lower cost, helping them offer faster and cheaper deliveries. GST is a double dhamaka, it helps sellers and brands offer greater savings, which customers eagerly wait for during festive sales," he said.
With the rate reductions being broad-based, Amazon expects a significant spike in demand across product categories, particularly in TVs, air-conditioners, home appliances, apparels, and smartphones. "Sellers are excited and will pass on the GST benefits. People had already paused purchases in anticipation of the festive season, and with GST, the uptick will be even bigger," Srivastava added. He said Amazon is also working in the background to revise GST codes for a smooth seller transition.
Abhinav Singh, Vice President, Operations, Amazon India, highlighted the company’s readiness to meet this surge. Amazon has made a Rs 2,000-crore investment in its supply chain this year, adding 12 new fulfilment centres and 45 delivery stations in Tier-II cities. "This infrastructure investment has come online just before the sale, ensuring we’re prepared from a demand perspective," Singh said.
The company has created 1.5 lakh seasonal jobs to support its festive season sale and scaled its tech systems to handle the expected spike. "Every single freight train and plane will carry Amazon packages this season. We are tying up with more freighters to ensure the fastest delivery times ever for our customers," Singh added.
