Amazon Now, as the quick commerce unit of Amazon in India, has reached annual sales of one billion dollars in the past three months. This significant achievement follows a doubling of the number of orders each season and increased purchases by Prime members compared to non-Prime customers.
Rapid Growth in the Indian Market
Sameer Kumar, head of Amazon India, announced that Prime members purchase nearly three times more from Amazon Now than non-Prime customers. The annual sales figure is estimated from the total sales of a month or a season over the course of a year and includes the value of orders after discounts and cancellations; however, Goods and Services Tax (GST) is not included in these calculations.
Expansion in Smaller Cities
Kumar also noted that the interest from non-Prime customers is increasing as the service expands to smaller cities and regions. Some of these customers are also becoming Prime members. He stated: "Prime is one of the main drivers of our growth, but even non-Prime customers are entering the market in good numbers. With the expansion into smaller cities, we are seeing significant growth in this customer segment, which is also converting to Prime membership."
Amazon Now began its operations in the first quarter of last year, and this year, Andy Jassy, CEO of Amazon, announced that the service will expand to over 300 cities, creating the largest quick delivery network in India. It is expected to reach 100 cities by Diwali (November) and launch 1,000 dark stores before the end of the year.
According to reports, the daily orders for Amazon Now have reached approximately 700,000, thus holding about 10 percent of the market based on order volume and 14 percent based on value. Kumar also pointed out that about 70 percent of all Amazon customers are from smaller markets.
Amazon Now has entered new markets such as Udupi, Warangal, and Guntur, and will soon begin operations in Kapurthala and Gurdaspur.
