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By Prem Gupta · December 15, 2025 · Curated by George's Blog
Amazon has built a tiered quick commerce model under "Amazon Now," offering 10,000 essential items in 10 minutes, 100,000 in a few hours, and over 1 million with same-day or next-day delivery. This tiered speed offering is currently available to Prime customers, with fast delivery at no extra cost.
Following its success in India, Amazon has expanded the quick commerce model to Dubai, Riyadh, Cairo, and Mexico City, and is currently piloting it in Seattle.
Amazon reports that Prime members who use Amazon Now begin shopping on the platform three times more frequently afterward. This demonstrates that ultra-fast delivery significantly boosts repeat usage and deepens loyalty, helping Amazon drive retention and increase basket size in a highly competitive e-commerce market.
Unlike many quick commerce startups, Amazon’s model is built on its existing supply chain, Prime user base, and fulfillment infrastructure. This reduces marginal costs and ensures long-term sustainability.
From an ads POV, a noticeable change is that SB ads are no longer appearing in TOS placements for certain categories. Instead, Amazon Now listings are taking the top position, followed by SP ads. This shift could significantly impact brands, as SB visibility at TOS is being displaced, making it more difficult for advertisers to drive brand awareness and top-funnel engagement in these categories.
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