Amazon has announced that it will operate micro‑fulfilment centres in 100 Indian cities, extending its same‑day and two‑hour delivery network across the country. The expansion, which forms part of the retailer’s broader logistics strategy, will see the company deploy small, technology‑enabled warehouses close to residential neighbourhoods, enabling faster order processing and delivery.
The micro‑fulfilment hubs, the size of a typical grocery store, will be equipped with automated storage and retrieval systems. By placing inventory nearer to end‑users, Amazon aims to reduce last‑mile delivery times and lower transportation costs. The new sites are expected to support the company’s “Prime Now” and “Amazon Fresh” services, which already provide two‑hour delivery in select metropolitan areas.
According to an internal briefing, the rollout will commence in Tier‑2 and Tier‑3 cities that previously lacked advanced logistics infrastructure. Amazon plans to partner with local real‑estate owners and manufacturers to secure suitable premises, and it will hire additional staff for warehouse operations and last‑mile delivery. The company also intends to integrate its proprietary AI‑driven demand forecasting tools to optimise stock placement across the network.
India’s e‑commerce market has grown rapidly, with online sales projected to exceed $120 billion by 2025. Competition among major platforms has intensified, as consumers increasingly demand faster delivery at lower costs. Amazon’s micro‑fulfilment expansion is designed to strengthen its market position and address operational bottlenecks that have arisen from the surge in order volumes, particularly during peak shopping periods.
Industry analysts note that the move aligns with global trends, where leading retailers are decentralising their distribution models to bring inventory closer to customers. Similar initiatives have been launched in the United States and Europe, where micro‑fulfilment centres have helped cut delivery windows from days to a few hours.
Regulators have welcomed the investment, highlighting its potential to create jobs and improve supply‑chain efficiency. However, they have also emphasized the need for compliance with local labour and safety standards as the new facilities become operational.
Amazon has not disclosed the total capital outlay for the project, but the company’s recent earnings report indicated a 15 percent increase in logistics spending year‑over‑year. The micro‑fulfilment expansion is expected to be completed over the next 12‑18 months, with the first centres slated to open in September.
By extending its rapid‑delivery capability to a broader geographic footprint, Amazon seeks to enhance the customer experience and sustain its growth trajectory in one of the world’s fastest‑expanding online markets.
