Amazon Business reports a 65% year-on-year sales jump, driven by strong demand from small businesses in smaller cities. The company has boosted its 2026 infrastructure spending to ₹2,800 crore, up from ₹2,000 crore in 2025, to support its network of 20 lakh sellers and nationwide fulfillment centers.
Amazon Business has recorded a 65% year-on-year increase in sales, highlighting the growing adoption of online procurement among small and medium enterprises in India. To support this demand, the company has allocated ₹2,800 crore for infrastructure and supply chain development in 2026, marking a significant step up from the ₹2,000 crore investment made in the previous year. This capital spending is aimed at strengthening its delivery network, which currently spans 65 fulfillment centers across the country.
The platform's growth is heavily concentrated in tier-2 and tier-3 cities, which now account for 65% of its total business client base. This trend indicates that the digital transformation of procurement is no longer limited to major metropolitan hubs. For instance, data from West Bengal shows that while overall sales grew by 35%, bulk orders surged by 80%, largely driven by manufacturing and service-oriented businesses rather than resellers. This shift suggests that businesses are increasingly relying on digital platforms for their operational supply needs, moving away from traditional, fragmented procurement channels.
To sustain this momentum, Amazon Business is integrating artificial intelligence tools to help sellers with inventory management and product visibility. The platform currently supports over 20 lakh sellers, having added 3 lakh new sellers in the past year alone. Furthermore, its 'Buy Now Pay Later' facility, which is now being used by over 8 lakh business customers, serves as a critical tool for helping smaller enterprises manage their cash flow and procurement cycles. With mobile procurement accounting for 70% of total order volume, the company's reliance on digital-first access continues to be a key driver of its engagement levels.
Investors and market observers should note that the Indian B2B e-commerce sector remains highly competitive. Amazon Business faces competition from several specialized platforms and large retail conglomerates like Reliance JioMart, which are also aggressively expanding their wholesale and B2B capabilities. Additionally, the broader e-commerce sector in India continues to operate under a stringent regulatory framework, with the Competition Commission of India and other regulators frequently monitoring the impact of foreign-funded platforms on local retail ecosystems. Any changes in foreign direct investment norms or specific e-commerce regulations could influence the operational landscape for such platforms.
The key monitorable for the business going forward is the ability to maintain these growth rates while managing the logistics costs associated with deep penetration into smaller towns. The effectiveness of the company’s AI-driven seller tools in improving inventory turnover and the overall health of its seller network will also remain a crucial indicator of the platform’s long-term sustainability.