Updated Dec 29, 2020 | 16:35 IST
Amazon, which has been locked in a bruising battle for market leadership with Walmart-owned Flipkart, also faces competition from Reliance Industries that has been bolstering its position in the retail segment Amazon invests Rs 11,400 crore in India in FY20 to strengthen its position | Photo Credit: PTI
New Delhi: US e-commerce giant Amazon has pumped in over Rs 11,400 crore (about USD 1.5 billion) during FY2019-20 across its marketplace, payments and wholesale business units in India to bolster its position in the country s burgeoning digital commerce market. The investments have been made even though most of Amazon s business units in India registered losses during the fiscal.
Amazon invests Rs 11,400 cr in India in FY20
Amazon invests Rs 11,400 cr in India in FY20
NEW DELHI: US e-commerce giant Amazon has pumped in over Rs 11,400 crore (about USD 1.5 billion) during FY2019-20 across its marketplace, payments and wholesale business units in India to bolster its position in the country’s burgeoning digital commerce market.
The investments have been made even though most of the Amazon’s business units in India registered losses during the fiscal.
Data analysis from regulatory filings by various Amazon entities showed that Amazon Seller Services, Amazon Wholesale (India), Amazon Pay (India) and Amazon Transportation Services saw their losses adding up to Rs 7,899 crore in FY20 as against a loss of Rs 7,014.5 crore in the preceding fiscal.
Amazon Wholesale India revenue declines 70% in FY20
Amazon Wholesale India attributed the drop to the change in the government regulation resulting in lower customer adoption. The government had introduced Press Note 2 with an aim to bring a level playing field between online and offline retailers in December 2018. It got implemented in February 2019. December 24, 2020 / 10:29 PM IST
Amazon Wholesale buys products in bulk from manufacturers and sells to platform sellers who sell on its marketplace.
Amazon Wholesale India, the B2B arm of the American e-commerce giant, reported a 70 percent decline in its revenue at Rs 3,388 crore for the financial year ending March 31.
Amazon Seller Services reported its revenue for the financial year 2019-20 (FY20) at Rs 11,028 crore, a 42 per cent jump since the last financial year. The company further reported a net loss of Rs 5,849 crore during the same fiscal. This is a 3 per cent increase from the last financial year, according to regulatory documents sourced from business intelligence platform Tofler. The company’s total expenses for the fiscal were Rs 16,877 crore. The revenue was generated from areas such as web-based information technology-enabled services, business-to-business wholesale trading, and wholesale electronic equipments. “The company is confident of its future growth,” the firm said.
Amazon Wholesale s revenue slumps 70% due to change in India s FDI rules
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Last Updated: Dec 25, 2020, 09:10 AM IST
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Synopsis
The decline in revenue could be attributed to a change in India’s FDI rules, which disallowed sellers on e-commerce marketplaces from purchasing more than 25% of their goods from related entities related to the marketplace.
Reuters
Revenue of Amazon India’s wholesale unit fell 70% to Rs 3,387 crore in the fiscal ended March 31, 2020, due to a change in government regulations that came into effect in February 2019, just prior to the fiscal year starting April 1.
Losses at Amazon Wholesale declined 5% to Rs 133 crore, regulatory documents sourced from business intelligence platform Tofler showed.