In a strategic move to strengthen its logistics backbone and tap into India’s booming non-metro consumer base, Amazon India has announced the expansion of its fulfillment centre network across tier-2 cities. The initiative is part of the company’s ongoing commitment to deepen its presence in emerging markets and enhance delivery speed, customer experience, and seller reach.
With digital penetration rising rapidly beyond metro areas, Amazon is focusing on cities such as Indore, Coimbatore, Nagpur, Patna, and Lucknow, where e-commerce demand has surged over the past two years. The new fulfillment centres are expected to boost regional employment, support local MSMEs, and reduce last-mile delivery time.
Why Tier-2 Cities Matter Now
Amazon’s decision reflects the shifting landscape of Indian retail, where tier-2 and tier-3 cities now account for a significant share of online purchases, driven by affordable smartphones, improved internet access, and increasing digital literacy.
According to internal market studies and third-party research:
-
Over 60% of new Amazon customers now come from smaller towns
-
Product categories like fashion, electronics, and home essentials are witnessing exponential demand in non-metro areas
-
Sellers from tier-2/3 cities have grown by over 35% year-on-year
New Warehousing Infrastructure
The newly announced fulfillment centres are tech-enabled warehouses designed to handle high volumes across product categories. These centres offer:
-
Optimized storage space for faster sorting and packaging
-
AI-powered inventory management for real-time tracking
-
Eco-friendly packaging and energy-efficient operations
-
Dedicated zones for local sellers and artisans, especially those registered under the Amazon Karigar and Saheli programs
Amazon India now operates close to 70 fulfillment centres across the country, covering a total storage capacity of over 43 million cubic feet.
Local Economy and Seller Empowerment
This retail infrastructure push is also expected to create thousands of direct and indirect jobs, including in warehousing, delivery, packaging, and maintenance. Additionally, regional sellers and small businesses will benefit from:
-
Faster processing of customer orders
-
Reduced logistics costs
-
Access to Amazon’s nationwide delivery and Prime ecosystem
“Tier-2 cities are not just markets—they are the next growth engines,” said a senior Amazon India executive. “We’re investing in infrastructure that connects local entrepreneurs to the national supply chain.”
Strategic Timing and Competitive Edge
The announcement comes as India’s e-commerce sector gears up for festive season sales and increased rural digital spending. Competitors like Flipkart and Meesho have also made inroads into tier-2 markets, but Amazon’s logistics-first approach gives it an edge in ensuring reliable, fast delivery and scaling operations.
Moreover, with ongoing efforts by the Indian government to bolster digital commerce and rural entrepreneurship, such investments are aligned with national priorities like Digital India, Make in India, and Startup India.
Next-Gen Retail Roots in Smaller Cities
Amazon’s aggressive fulfillment centre expansion into India’s tier-2 cities marks a major evolution in the country’s e-commerce landscape. It’s not just about faster deliveries—it’s about democratizing digital retail, empowering local businesses, and meeting a new generation of small-town consumers where they are.
