New Delhi: Amazon’s quick-commerce business in India has crossed $1 billion (around ₹8,300 crore) in gross annualised sales, marking a major milestone for the company as it rapidly expands its Amazon Now delivery service across the country.
The milestone comes despite Amazon entering India’s quick-commerce segment later than established players. Amazon Now has now emerged among the top three quick-commerce services in key urban markets such as Delhi and Bengaluru, according to a report cited by NDTV Profit.
Amazon Now expands rapidly across India
Amazon Now has expanded to more than 60 cities in less than 10 weeks, underlining the pace at which the company is building its quick-commerce network.
The company plans to take the service to 100 cities by Diwali and establish around 1,000 dark stores by the end of 2026. Amazon has previously outlined an even broader ambition to take its quick-commerce service to more than 300 cities.
The rapid expansion puts Amazon in direct competition with established players including Blinkit, Zepto, Swiggy Instamart and Flipkart Minutes.
Amazon India country manager Samir Kumar has described the quick-commerce operation as one of the company’s fastest-growing business units.
Orders doubling every quarter
The growth in Amazon Now is being driven by a sharp increase in order volumes.
According to Kumar, orders on Amazon Now have been doubling every quarter since the service was launched. The company considers the unit its fastest-growing e-commerce business in Amazon India’s history.
The service is currently handling around 7 lakh orders a day, according to people familiar with the business. It is estimated to have around 10% share of the quick-commerce market by orders and 14% by value.
The average order value is estimated at around ₹540.
The scale highlights how quickly consumer demand for groceries, household essentials and other everyday products delivered within minutes is expanding in Indian cities.
More than 750 fulfilment centres
To support its rapid expansion, Amazon has built a network of more than 750 micro-fulfilment and urban fulfilment centres.
These facilities are central to the quick-commerce model because orders need to be stored close to customers to enable deliveries within minutes.
Amazon’s existing logistics infrastructure and large customer base give it an advantage as it expands the service into new markets.
The company is also looking to increase the selection of products available through Amazon Now, moving beyond the core categories traditionally associated with quick commerce.
Smaller cities become the next growth engine
Amazon is increasingly focusing its quick-commerce expansion beyond India’s biggest metropolitan markets.
Samir Kumar said the company’s growth engine would increasingly depend on deeper penetration into smaller cities and towns.
Around 70% of Amazon’s overall customers already come from smaller cities, according to Kumar. This existing customer base could help Amazon introduce Amazon Now to markets where competitors are also attempting to expand their dark-store networks.
The strategy reflects a broader shift in India’s e-commerce industry, where companies are looking beyond major urban centres to sustain growth.
For Amazon, the ability to combine its established customer base with rapid delivery could help it accelerate adoption in emerging markets.
Amazon takes on Blinkit, Zepto and Swiggy Instamart
Amazon’s entry into quick commerce has intensified competition in one of India’s fastest-growing digital retail segments.
Blinkit and Zepto have established strong positions in rapid grocery and household delivery, while Swiggy Instamart and Flipkart Minutes have also expanded their networks.
Amazon Now’s emergence among the top three players in Delhi and Bengaluru is therefore significant because the company entered the market after several of its competitors had already built substantial operations.
The $1 billion annualised sales milestone indicates that Amazon has been able to scale the service quickly despite the late entry.
Amazon targets 1,000 dark stores
Amazon’s next major target is to build around 1,000 dark stores by the end of the year.
Dark stores are dedicated fulfilment facilities that are designed specifically for online orders rather than conventional walk-in retail. Their locations close to residential areas allow quick-commerce companies to reduce delivery times.
Amazon’s plan to expand its dark-store network is expected to increase the geographical reach of Amazon Now and improve its ability to handle rising order volumes.
The company is also expected to broaden the range of products offered through the service as its network expands.
Quick commerce becomes key battleground
The rapid growth of Amazon Now comes as India’s quick-commerce sector enters a more competitive phase.
Consumers have increasingly become accustomed to receiving everyday products within minutes, forcing traditional e-commerce companies to adapt their delivery models.
For Amazon, the challenge will be to maintain rapid expansion while keeping the economics of quick commerce sustainable. Building and operating hundreds of dark stores, maintaining inventory close to customers and supporting last-mile delivery all involve significant costs.
The company’s large customer base and established logistics network could nevertheless provide economies of scale as Amazon Now expands.
Amazon’s quick-commerce ambitions
Crossing $1 billion in gross annualised sales marks an important milestone for Amazon’s India operations. The company is now moving aggressively to expand Amazon Now from major cities to smaller markets.
With more than 60 cities already covered, a target of 100 cities by Diwali and plans for 1,000 dark stores by the end of the year, Amazon is signalling that quick commerce will be an important part of its future growth strategy in India.
The company’s progress will also put further pressure on Blinkit, Zepto, Swiggy Instamart and Flipkart Minutes as competition for India’s rapidly growing quick-commerce market intensifies.