Around 70% of New Amazon Prime Members Come From Tier 2, 3 Cities: VP Akshay Sahi

Around 70% of new Amazon Prime members in India now come from Tier-2 and Tier-3 cities, reflecting a sharp shift in the company’s growth beyond metropolitan markets, said Akshay Sahi, Vice President – Prime & Customer Fulfilment Experience, India & Emerging Countries, Amazon.

Speaking to Outlook Business, Sahi said Prime has increasingly become an everyday membership across the country rather than a service concentrated in large cities.

"Prime in India has truly become a membership for Bharat, not just metros. Today, around 70% of new Prime members are coming from Tier-2 and Tier-3 cities, which reflects a strong shift in where adoption is accelerating. In many ways, it’s a two-way relationship — Bharat loves Prime, and Prime loves Bharat right back," Sahi said.

He added that customers in smaller towns now expect the same delivery speed, product selection and reliability as those in metropolitan areas, with Prime evolving into a broader value proposition beyond faster deliveries.

The 10th edition of Amazon Prime Day began on July 4 and will run until July 6, featuring 72 hours of deals across categories including electronics, fashion, groceries and home products.

The event includes more than 500 new product launches, the company said in a statement.

Investments in Logistics and Fulfilment

Amazon has expanded its logistics network to support the rise in demand. Sahi said the company now delivers to all serviceable pin codes across India, with over 97% eligible for deliveries within two days.

"We’ve made significant investments to support this. Amazon India delivers to 100% of serviceable pin codes, with more than 97% able to receive deliveries within two days," he said.

"Two-day deliveries in Tier-2 and Tier-3 cities have grown 40% year-on-year, while same-day orders in metros grew 65% and next-day deliveries in smaller cities saw 50% growth," Sahi added.

The official also said Amazon added 17 fulfilment centres, six sortation centres and 75 last-mile delivery stations during 2025 to strengthen its network.

Membership Base Set to Double

India remains one of Amazon Prime’s fastest-growing markets globally and that the company expects to double its Prime membership base from 2023 levels by the end of 2026, Sahi told Outlook Business.

He added that engagement among existing members continues to increase, with more than 80% of Prime subscribers using at least two membership benefits. Nearly one in five customers who begin with the Shopping Edition membership later upgrade to higher-tier plans within their first year.

According to Sahi, Prime members shop around five times more frequently than non-members, while the average member saves more than twice the annual membership fee through discounts and offers alone.

He also highlighted the expansion of Amazon Now, the company's quick commerce service, stating that it has grown to 100 cities, supported by over 1,000 micro-fulfilment centres and more than 100 urban fulfilment centres.