Cutting Through the Noise: How Amazon India is Reinventing AI Discovery

Amazon, with the launch of an all-new storefront, 'AI Tech Lab,' is moving away from tech jargon and cutting through the noise and attempting a use-case-driven curation for smartphones, laptops, and more. From dishwashers to QLED TVs, Amazon India has so far seen a massive shift toward high-end electronics in 2026. To talk more about Amazon India's 2026 strategy, right from AI Store, premiumisation across categories, and the new trend where smaller cities on the platform are leaving behind metro cities, Gadgets 360 spoke to Zeba Khan, Director, Consumer Electronics, Amazon India.

Not Just Metros: Amazon India Says Tier 2 City Shoppers are Spending 5% More on Premium Tech

Zeba revealed that Tier 2 and Tier 3 cities are outspending metros as premiumisation sweeps across categories. She added that Rufus and the new AI tools are simplifying "cognitive load" for Indian gadget buyers.

On 2026 growth so far and categories, Zeba said, "Quarter one has ended well for us, in categories like laptops, PCs, tablets, we are seeing growth that is much ahead of the industry. And similarly, we are seeing premium segments across categories growing very well for us, double digit, be it premium smartphones, be it 55-inch and above televisions, be it AI-powered large appliances. We are seeing our ASPs also grow."

Almost the entire industry is talking about premiumisation, and we wanted to understand how this has fared in Tier 2 and Tier 3 cities. Zeba explained, "A lot of premiumisation is happening in Tier 2 and Tier 3 cities. That's the trend we are seeing. In fact, we are observing that in Tier 2 cities, the ASPs are actually 5% higher than our average. So that's, again, a very good, encouraging trend for us. Along with that, apart from business trends, I think the customer trend we are seeing is that our AI device-related searches are growing by 60% year-on-year. Two-thirds of those searches are coming from Tier 2 and Tier 3 cities."

On specific category surges, Zeba touched upon how QLED and mini LED categories are seeing an uptick lately. "QLED, mini LED that too 55 inch and above, which are those premium televisions, they are growing 77% year on year, which is obviously much higher than the overall category growth. We are seeing two-ton, five-star ACs growing much faster than the rest of the category. We are seeing two-door refrigerators grow much faster than single-door, and I'll give you some data points like washer-dryers, which are obviously a very evolved appliance with washing and drying happening together. 3x year on year is the kind of growth we are seeing," she said.

Zeba on Why Curation is the New Search

Speaking about Rufus and other AI shopping tools, Zeba said the tech category is one with a lot of technical jargon, and sometimes it can be tough for someone who's not familiar with the tech domain. She added, "In a category like consumer electronics, which is a lot of tech jargon, there is a high cognitive load on the customer. In our categories, we are seeing even greater adoption due to the wide range of choices. Apart from that, we've added many new AI tools to make the shopping journey easier for customers. For example, we now have pricing history available for all products. It will give you the history. Like, is this product and its lowest pricing now? Does it normally remain in this range? Has it been lower in the past? What can you expect in future? So we are being super transparent with customers."

"This AI Store is built for Bharat. It's not just a metro phenomenon."

On being asked how Amazon India is dealing with rising prices and affordability. Zeba hinted that as memory prices rise, Amazon is banking on affordability levers and AI-driven curation to keep the momentum going. She said, "Obviously, it's an uncontrollable for us. We are not manufacturers. So, what the pricing of the products will be is not under our purview, but what we put our efforts into and where we are seeing the traction with our customers is helping put forward the best affordability levers for them, which is no cost EMI, cashbacks, be it exchange, like I was talking to you about, value-added services. I believe these are the things that help customers actually buy what they aspire to. You can buy a Rs. 60,000 device with a Rs. 3300 EMI, and that's what's making it possible, and that's what we have democratised."

Talking about the all-new storefront, she added, "We are not putting out technical jargon about chipsets. We talk actually about the use cases, presenting the best three AI features and the four or five best devices for them. What we saw from search data and customer anecdotes is that people want AI devices but don't fully understand what each feature would do. So, we created a store that simplifies and educates, and brings the best selection in one place."

She continued talking about the new store, "Whether it's a student in Dibrugarh (Assam) looking for a laptop, or a professional in Nagercoil (Tamil Nadu) upgrading to a smartphone, or a family in Mumbai (Maharashtra) exploring televisions that adapt to how they watch, we want every customer to find an AI-powered device that genuinely simplifies their life. This AI Store is built for Bharat. It's not just a metro phenomenon."