Under the leadership of Samir Kumar, Amazon India is strategically focusing on quick commerce and other formats to capture a larger share of the Indian e-commerce market. Kumar, who took over as country manager in October 2024, is driving a shift towards prioritizing speed and efficiency, with a strong emphasis on customer satisfaction and profitability.
Kumar's strategy involves leveraging Amazon's existing infrastructure and technology to create a robust quick commerce ecosystem. Amazon launched its quick commerce service, Amazon Now, in select cities like Bengaluru and Delhi. The company plans to expand this service to more cities, including non-metros, indicating a broad vision for reaching customers across India. The initial response to Amazon Now has been overwhelming, with customers providing positive feedback on the selection and quality of produce.
A key component of Kumar's approach is to build on Amazon's "Selection, Value and Convenience" philosophy. This involves not only offering fast delivery but also ensuring a wide selection of products and competitive pricing. Amazon is creating micro-fulfillment centers and using data-driven inventory planning to achieve these goals. The company is also focused on building a strong back-end fulfillment and supply chain infrastructure to support its quick commerce operations.
Amazon's focus on quick commerce comes amid intense competition in the Indian e-commerce market. Players like Blinkit, Zepto, and Swiggy Instamart have already established a strong presence in the quick commerce segment. However, Kumar believes that the online commerce space is vast and there is room for multiple players. Amazon aims to differentiate itself by offering a large selection of products with fast delivery, catering to a wide range of customer needs.
In addition to quick commerce, Kumar is also focusing on strengthening Amazon's Prime program. Prime users spend nearly twice as much as non-Prime users and contribute more than half of Amazon India's business. Amazon witnessed a 70% surge in new Prime signups from tier 2 and tier 3 cities during its recent Prime Day sales event, indicating the program's growing popularity. By focusing on Prime, Amazon aims to drive profitability and customer loyalty.
Furthermore, Amazon is keen on reaching the next 200 million customers beyond the top cities. The company recognizes the potential in smaller towns and is tailoring its offerings to meet the unique needs of customers in these regions. Amazon is also investing in creating infrastructure for digital India, highlighting its commitment to the Indian market.
While Amazon is making significant strides in quick commerce, it faces challenges such as regulatory oversight and brand recall gaps. However, with Samir Kumar at the helm, the company is determined to overcome these challenges and achieve leadership in the Indian e-commerce and quick commerce sectors. Kumar's focus on customer satisfaction, efficient operations, and strategic investments positions Amazon India for growth and success in the years to come.
