Amazon sees surge in electronics sales, small towns drive growth

**Amazon Sees Surge in Electronics Sales, Small Towns Drive Growth**

*By Mudit Dube | Sep 30, 2025, 04:53 PM*

Amazon India’s ongoing Great Indian Festival has witnessed a massive surge in consumer electronics sales, with an impressive 70% of orders coming from outside Tier-1 cities. This trend highlights the growing demand for premium smartphones, large-screen TVs, AI-powered laptops, and smart appliances in smaller towns across the country.

### GST Cuts Boost Demand

Zeba Khan, Director of Consumer Electronics at Amazon India, attributed this growth to recent GST cuts on categories such as televisions and air conditioners. She explained that the GST benefits have played a major role in converting pent-up demand into actual purchases across various segments.

While the Great Indian Festival has always offered attractive deals, Khan noted that the government’s GST reduction, coupled with clear communication, has significantly amplified consumer interest. The new GST regime came into effect on September 22, just a day before Amazon launched its sale, adding further momentum to the festival.

### Smartphones Remain the Anchor Category

Smartphones continue to dominate Amazon’s electronics sales, particularly premium models priced above ₹20,000. These high-end smartphones have witnessed nearly 50% year-on-year value growth, along with a 30% increase in average selling price.

Brands like Samsung, Apple, OnePlus, and iQOO performed exceptionally well during this period, driving the robust demand in the smartphone segment.

### Premiumization Trend Gains Momentum

Despite being an off-season for certain appliances, sales of air conditioners have increased by over 20%, driven by demand for smart and energy-efficient models. Dishwashers have seen an astounding growth of over 120%, while televisions—especially large screens above 55 inches—have also experienced strong sales growth.

The computing segment is reflecting the premiumization trend as well, with AI-powered laptops accounting for one in five sales. Additionally, the average selling prices in personal computing have risen by 15-16%, indicating a shift towards more advanced and feature-rich devices.

### Growth Strategy: Affordability and Enhanced Logistics

Amazon credits this surge in consumer electronics sales to both increased demand from smaller towns and greater affordability. Over 30% of premium devices were sold on no-cost EMIs, underscoring the importance of flexible payment options in driving purchases.

To support this growth, Amazon has also strengthened its logistics capacity, ensuring that 40% of orders were delivered the same or next day within the first 24 hours of purchase.

Amazon’s Great Indian Festival continues to set new benchmarks, fueled by favorable tax reforms, rising premium demand from smaller towns, and strategic initiatives focused on affordability and quick delivery.
https://www.newsbytesapp.com/news/business/amazon-sees-surge-in-electronics-sales-small-towns-lead-growth/story

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