Amazon Quick Commerce Crosses $1 Billion In Gross Annualised Sales In India: Report

Amazon's quick-commerce business has crossed $1 billion in gross annualised sales in India over the past three months, The Times of India reported on Tuesday, citing Amazon India country manager Samir Kumar. The company's Amazon Now service has also emerged among the top three quick-commerce players in Delhi and Bengaluru, despite entering the segment later than rivals.

The milestone comes as Amazon rapidly expands its delivery-in-minutes business across India, stepping up competition with Blinkit, Zepto, Swiggy Instamart and Flipkart Minutes. Amazon Now has expanded to more than 60 cities in less than 10 weeks and is targeting 100 cities by Diwali.

Amazon Now Orders Doubling Every Quarter

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Kumar said orders on Amazon Now have been doubling every quarter since the service was launched, making it the fastest-growing e-commerce business unit in Amazon India's history.

“Prime is a big driver for our flywheel, but even non-Prime customers are coming in quite a good number,” Kumar said, as per TOI. He added that the company is seeing strong growth in non-Prime customers as it expands into smaller cities and towns.

Amazon Now currently handles around 700,000 orders a day, according to people familiar with the business. The service has an estimated 10% share of the quick-commerce market by orders and 14% by value.

Amazon has built a network of more than 750 micro-fulfilment and urban fulfilment centres to support the service. Its average order value is estimated at around Rs 540, according to Business Standard.

Amazon Targets 100 Cities By Diwali

Amazon plans to expand Amazon Now to 100 cities by Diwali and to 1,000 dark stores by the end of the year. The company had earlier outlined a broader plan to take its delivery-in-minutes service to more than 300 cities.

The expansion is increasingly focused on smaller cities, where Amazon sees significant room for growth. Around 70% of Amazon's overall customers already come from smaller cities, Kumar said.

“Our growth engine is still going to be a lot more penetrating into smaller cities and towns,” he said.

Business Standard reported, quoting CLSA, that Amazon's quick-commerce business has the potential to scale rapidly as the company expands its dark-store network and leverages its large existing customer base. CLSA expects Amazon's growing presence in the segment to support its ability to gain market share as the quick-commerce industry expands.

Amazon also plans to widen the selection of products and categories available through Amazon Now, while focusing on delivering customer orders within minutes in a sustainable and safe manner.

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