Amazon Views India as a Long-Term E-commerce Growth Opportunity
According to reports, Amazon considers India as a long-term investment opportunity, where e-commerce is still nascent and has considerable potential for growth, bolstered by solid macroeconomic factors and positive consumer sentiment.
Abhinav Singh, VP - Operations for India and Australia at Amazon, stated that the company's recent announcement regarding the expansion of 'zero referral fee' coverage to 12.5 crore products (up from 1.2 crore items in 2025) has received a positive and encouraging reaction from sellers.
"The feedback from the vendors has been quite positive." They’re thrilled not only with the lowered fees but also eager to share those advantages with the customers, allowing shoppers in the marketplace to benefit from improved prices. "From the seller's viewpoint, they can enhance their margin, which makes them genuinely enthusiastic," he stated.
He stated that the company's long-term perspective for India is strong due to the inherent advantages.
"We are confident that our presence in India represents a long-term investment retail, and especially e-commerce, is just beginning to take off. It represents a low single-digit percentage of the entire retail market, and there is significant potential for our growth," Singh states.
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According to a BCG report, e-commerce, which currently amounts to $ 120-140 billion, is projected to grow to $280-300 billion by 2030, with a customer base approaching 440 million; it will remain at 7-8 percent of total consumer expenditures.
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The BCG report highlighted that the structure of e-commerce is expanding as new formats are gaining traction. Platforms focused on specific categories now represent more than 60 percent of online expenditures, while horizontal marketplaces account for slightly less than one-third.
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Quick commerce is popularizing urgent shopping missions, increasing frequency and additional purchases, while social commerce and community-driven exploration are attracting newer and smaller-city users to e-commerce.
The adoption of e-commerce is increasingly prevalent, and the upcoming surge in growth will be driven by smaller cities and middle-income demographics.