Sellers passed on over ₹100 cr in GST relief to customers: Amazon India

The performance comes as recent GST reforms reduced rates on appliances and electronics, enabling sellers on Amazon to pass through over ₹100 crore in savings to customers

Amazon India’s month-long Great Indian Festival (AGIF) sale attracted 380 million customer visits in its first 48 hours, with more than 70 per cent coming from Tier-II and Tier-III cities, showcasing how India’s e-commerce expansion is accelerating beyond major metros. Recent goods and services tax (GST) reforms reduced rates on appliances and electronics, enabling sellers on Amazon to pass on over ₹100 crore in savings to customers. In a video interview with Peerzada Abrar, Saurabh Srivastava, vice president at Amazon India, said the platform added 12 new fulfillment centres, six sort centers, and 45 delivery stations while hiring 150,000 seasonal workers to support the surge. Premium electronics showed exceptional growth, with categories like air conditioners and TVs posting double-digit year-over-year increases, while kitchen appliances grew 150-250 per cent.

 

Srivastava discusses whether GST-driven demand represents a permanent behavioural shift, how Amazon’s quick commerce strategy positions against rivals like Flipkart Minutes, and whether infrastructure investments justify returns beyond seasonal spikes. Edited excerpts:

 

How has been the response to the AGIF this year and the impact of the GST 2.0 reforms? Are you seeing permanent behavioural changes in premium electronics purchasing, or do you expect demand to normalise once the tax savings novelty diminishes?

 

It’s a very strong response to the event. Almost 380 million customer visits have happened just in the first 48 hours of the event, across India, metro and Tier II and III towns have seen very strong demand. More than 70 per cent of the customer visits have come from Tier 2 and 3 towns. So that shows broad-based demand. Also, there is a duality playing out. A lot of high-ticket categories, especially the premium segment, are showing very strong growth. People are shopping for products they wanted but in upgraded versions. That is possible because of GST reductions on many of these categories, which brought effective prices down and sellers passed on those savings. In the first few days of the AGIF, we have enabled sellers to pass on savings over ₹ 100 crore in GST benefits to customers.

 

Take categories where there is a direct impact -- TVs and air conditioners -- we’re seeing double-digit growth year-on-year.

Inverters have grown 2 times. In categories like groceries and everyday essentials, protein products, vitamins, diapers, growth is 150-250 per cent. Kitchen appliances are also growing very fast.

 

On the seller side, millions of products with GST reduction have been sold. We have about 16,000 SMB sellers from Tier II and III towns whose sales have tripled. More than a third of sellers participating in the festival are from Tier II and III towns.

 

Speed is also valued. On Day 1, 40 per cent of products were delivered the same day. About 3 million products in metro cities were delivered the same or next day, and 5 million products in Tier II and III towns within two days.

 

Within 72 hours, we got orders from 100 per cent of serviceable pin codes in India.

 

Can you quantify what percentage of AGIF growth is directly attributable to GST 2.0 reforms versus organic demand?

 

It’s difficult at this point to precisely decipher that. When the festival runs, sellers bring their best deals. For example, 1 lakh products were at their lowest-ever prices of the year, and 30,000 new products launched from brands like Apple, Samsung, Asus and others. This year, GST reductions coincided with these offers, so it became a dual wave.

 

Clearly, categories with GST benefits saw huge growth. But there was also a spillover-- categories without GST cuts, like washing machines, also grew strongly. Billions of products were sold where GST reduction further boosted already-attractive festival prices.

 

Amazon has significantly expanded warehousing and delivery infrastructure for this festival season. Can you share metrics on the outcome of these investments, and how do you plan to utilise them post-festival?

 

Preparation started right after the 2024 festival. This year, we added 12 new fulfilment centres, 6 new sort centres, 45 new delivery stations, and hired 1.5 lakh seasonal associates. Almost 1 million products are available for same-day shipping and 4 million for next-day. About 3 million products were delivered in metros and 5 million in Tier II and III towns within 1–2 days. These results show how our investments in infrastructure and hiring are paying off. Our philosophy is customer obsession, focusing on three pillars -- broad selection, great value, and convenience, including delivery speed and customer service. That drives repeat shopping and loyalty. So, ROI is always there -- especially long-term.

 

With players like Flipkart Minutes and BigBasket delivering premium electronics in minutes, how is Amazon repositioning its delivery strategy?

 

To serve immediate needs, Amazon Now (quick commerce arm) has launched ultra-fast delivery in parts of Bengaluru, Delhi, and Mumbai. It offers groceries, personal care, small appliances, baby products, pet supplies, and festive needs. Launched earlier this year in Bengaluru, it has exceeded expectations, daily orders are growing 25 per cent month-on-month and Prime members have tripled their shopping frequency. We’ve opened over 100 micro-fulfilment centres in these cities and plan to open hundreds more by year-end. We’ll expand both selection and reach. Customers are responding well, and we’ll double down.

 

Where do you see the quick commerce category heading in the next 12-18 months?

 

It’s difficult for me to comment on the overall category. But customers clearly like fast delivery. This is not new to Amazon -- globally we pioneered 2-day, 1-day, and same-day delivery in India. Quick commerce focuses on a fraction of selection in top cities, delivered in minutes. Customers like it, and there’s a place for it. But we also see a huge need for wide selection, affordability (EMIs, BNPL, exchange), warranty, and post-sales support. Some customers prioritise speed, others value affordability or selection. Our focus remains broad-based: serving customers across India for all needs. For urgent needs, Amazon Now caters well.

 

You’ve reported strong premium product adoption in Tier-II and Tier-III cities. What specific operational changes has Amazon made to serve these markets effectively?

 

Over 70 per cent of sales in the first 48 hours came from non-metros. We built new fulfilment, sort, and delivery stations, largely in Tier II and III towns, to service them faster. That investment improved customer experience, which drove sales. Premium electronics have shown exceptional growth.

 

How is Amazon sourcing and inventory strategy evolving to capture this premiumisation trend?

 

This is a trend we’ve been observing since Prime Day 2025. Customers are gravitating to premium versions, larger front-load washing machines, double-door refrigerators, QLED TVs. GST cuts accelerated it further.

 

We’ve always focused on affordability like instant bank discounts, Amazon Pay Later (up to ₹60,000 credit), EMI, and exchange offers. Around 80 per cent of premium products are sold with EMI or exchange. Customers upgrade affordably, sellers earn higher absolute margins, and we collect higher fulfilment or selling fees. Premium products also tend to have higher customer satisfaction. It’s a win-win for customers, sellers, and Amazon.

 

What specific initiatives will Amazon deploy to maintain the momentum gained during AGIFl? Are you seeing structural shifts in Indian consumer behaviour that justify the infrastructure investments beyond seasonal spikes?

 

We don’t look at the festival as one-time. Each year, it sets a new watermark-- both in customer adoption and seller sales-- and becomes the new base to grow from. Post-event, customers expand to more categories and shop more frequently. For example, a family may start with diapers, then move to cooking oil, dry fruits, or smartphones. Once they experience value and convenience, they buy more often across categories. That’s why we invest heavily-- the benefit is long-term growth beyond the festival.