Amazon Seller Services, the marketplace arm of e-commerce company Amazon in India, has reported 14 per cent growth in revenues while losses have narrowed by 28 per cent for the financial year 2023-24. The revenue from operations for the company increased to Rs 25,406 crore in FY24 from Rs 22,198 crore in FY23 and total income jumped to Rs 25,592 crore from Rs 22,429 crore during the said period, according to the regulatory documents sourced from the business intelligence platform Tofler.
The company’s net loss for FY24 reduced to Rs 3,469 crore from Rs 4,854 crore during FY23 even as expenses increased by 6.5 per cent to Rs 29,062 crore in FY24 from Rs 27,283 crore in the preceding fiscal.
These included depreciation, depletion and amortisation expense of Rs 3,140 crore, employee benefit expense of Rs 2,771 crore and finance costs amounting to Rs 234 crore in FY24.
The growth assumes significance amid growing competition for Amazon India from direct rivals Flipkart and Meesho, as well as the rise of the quick commerce market in the country, which offers instant order delivery in comparison to the up to a week required by e-commerce companies to complete order deliveries.
Flipkart with its ‘Minutes’ service and Reliance Retail’s JioMart have recently forayed into the quick commerce space dominated by Zomato-owned Blinkit, Zepto, and Swiggy Instamart. Tata-owned BigBasket has also pivoted fully to quick commerce mode.
Meanwhile, Amazon’s wholesale business in India, also known as Amazon Business, had recorded a flat growth in FY24 to Rs 3,577 crore from Rs 3,600 crore in FY23 while Amazon Pay and Amazon Transportation Services grew by 6.7 per cent and 7 per cent respectively during the financial year.
Its arch-rival Flipkart reported a 26 per cent jump in gross revenue from operations for its marketplace arm Flipkart Internet to Rs 70,542 crore in FY24, up from Rs 55,824 crore in FY23. Losses, on the other hand, were reduced by 13 per cent to Rs 4,248 crore from Rs 4,897 crore in FY23.