Amazon India is preparing for its biggest shopping season with expanded logistics, a record number of sellers and the prospect of lower prices after the cut in goods and services tax on several consumer products.

The Great Indian Festival, starting September 23 with early access for Prime members, comes on the back of GST reductions effective September 22, expected to sharpen discounts on appliances, fashion and electronics. Kishore Thota, director of shopping experience, Amazon India, said consumer sentiment was already on the upswing. “We expect demand to be high this year because of pent-up demand, and GST will only add to the boost,” he said.

Sameer Kumar, country manager at Amazon India, called the tax relief a benefit for both sellers and customers. “With a reduction in GST on millions of products, along with exciting deals already planned by sellers, customers can look forward to great savings,” he said.

Record seller participation with AI-powered tools

Amazon has updated systems with the new tax codes to enable sellers to pass on the revised rates and has cut referral fees in fast-moving categories. More than 1.7 million sellers are expected to participate this year, backed by programmes such as Launchpad, Karigar, Saheli and Local Shops. An AI-powered Samriddhi dashboard offers sellers inventory recommendations and performance insights. Amit Nanda, director of selling partner services, cited incense brand DevSugandh from Vrindavan, which has grown six-fold since joining the platform three years ago and now employs 15 women in a new factory.

Expanded delivery network for festive demand

To support festive demand, Amazon has stepped up investment in its supply chain. The company has opened 45 new delivery stations in towns including Rae Bareli, Port Blair and Tiruchirappalli, taking its last-mile network to nearly 2,000 stations. This follows the launch of 12 new fulfillment centres and six sortation hubs earlier this year, adding 8.6 million cubic feet of storage and 500,000 sq ft of sorting capacity. Abhinav Singh, vice-president of operations for India and Australia, said Amazon was delivering same-day to 50% more cities and next-day to twice as many compared with last year. The company has also hired 150,000 seasonal workers.