Festive sales: Amazon sees 70% customers from Tier-2/3 cities

Bengaluru: The Amazon Great Indian Festival 2025 has witnessed an unprecedented engagement across all metrics. Customer visits hit an all-time high, enabling hundreds of crores in GST savings across categories.

The ecommerce platform has recorded over 276 crore customer visits, with 70% coming from Tier-2/3 cities. A large number of transactions were from smartphones and smart TVs to sarees, festive decor, beauty products, and everyday essentials.

Additionally, this year saw the highest-ever number of sellers across the country registering sales, spanning diverse regions such as Kangra, Haridwar, Muzaffarpur, Jamnagar, Darjeeling, Shivamogga and Salem. Throughout the Amazon Great Indian Festival, Prime members enjoyed special offers, deals and Amazon’s fastest delivery speeds.

"This year's festival enabled more than Rs 1,000 crore in customer savings through bank offers, enabled GST benefits through sellers, and cashback rewards. We are equally delighted to see strong growth for lakhs of sellers, from small businesses and local artisans to made-in-India brands," said Saurabh Srivastava, Vice President, Amazon India.

The company said its Prime members across India experienced faster deliveries than ever before, with more than 4 crore products delivered the same day (1.4 crore, up 60% y-o-y) and the next day (2.8 crore, up 22% y-o-y).

Amazon's delivery network showed strong growth across India, with same-day and next-day deliveries to Prime members in metro cities increasing by 29% year over year, while two-day deliveries in Tier-2 and Tier-3 cities grew by 37%. Prime membership continued to expand beyond urban centers, with approximately 70% of new Prime members coming from Tier-2/3 cities.

This year saw the highest-ever participation of small and medium businesses (SMBs), with more than two-thirds hailing from tier 2 and 3 cities.

Digital transformation

During the festive season, one in four customers used Amazon Pay. One in four orders were made using UPI, reflective of how UPI has become the preferred mode of payment across India, recording a 23% growth over last year.

One out of every six purchases across mobiles, large appliances, TV and electronics were made with EMI. Of these, 4 out of 5 purchases were made on No Cost EMI (NCEMI). The platform witnessed a 10% y-o-y growth in NCEMI across appliances, fashion, groceries, baby and pet products.

Amazon Pay ICICI Bank credit card usage witnessed an increase of 10% y-o-y. Cardholders' expenditure increased by an impressive 15% compared to 2024, reflecting increased consumer trust. This surge in spending value was complemented by a 13% rise in transaction volume (number of transactions).

Gift cards grew 42% demonstrating the growing preference for digital gifting solutions in India. Amazon Pay Later saw 84% increase in new issuances, a 15% y-o-y increase in usage compared to 2024.

Consumer electronics

Premium smartphones priced above Rs 30,000 grew by 30% with 65% contribution from tier 2 and 3 cities. Customers upgraded from 43 inches to 55 inches TV (+10% y-o-y), with 75+ inches growing at 70% indicating affinity towards the premium segment, made affordable with GST revisions. QLED TVs grew by 105% and Mini-LED increased 500 times.

MacBook Air M4 experienced exceptional demand with 21X growth. Sony Home Theatre systems grew by 320% y-o-y.