Amazon India in Q4 was the top e-commerce site... it was a very busy Diwali shopping season, said Brian Olsasvky, Amazon CFO.
Amazon, which registered its biggest ever profits in the December quarter, has said sellers on its Indian marketplace sold more goods in the festive period stretching from October to December than the combined sales for all of 2014.
“We continue to like what we see happening in India. According to comScore data, Amazon India in Q4 was the top e-commerce site and it was a very busy Diwali shopping season in India,” CFO Brian Olsasvky said during the investors/analysts call Thursday following its financial results.
Amazon has committed to invest $2 billion in its Indian operations. Without giving any India-specific figures, the online retailer said the company will continue to invest the country. Amazon’s net profit for the fourth quarter, which included the festive shopping period, rose to $482 million, up from $214 million, a year earlier. However its missed Wall Street estimates, sending its shares down more than 13% in after-hours trading.
“We are going to continue investing in India. We are seeing great progress with the downloads and we are doing innovation for sellers and customers alike,” Olsasvky said.
Amazon India had communicated to the Registrar of Companies (RoC) that it has infused Rs 1,696 crore into Amazon Seller Services as part of the ongoing investments.
Earlier this week, Amazon India had said that its Great Indian Sale held between January 21 and 23 was bigger three times over compared with last year’s shopping bonanza during the same period, with most categories registering nine times growth versus the daily run rate. The online retailer said over 65% of its orders during the sale came from outside of the the top eight metros and traffic on mobile continued to be 70%.
In India Amazon is locked in a intense three-way battle with two home grown players — Flipkart and Snapdeal — in the growing e-commerce market in India, which is estimated to touch $100 billion by 2020, according to a report by Goldman Sachs. The rising sales of the major e-commerce players have also come at the cost of ever expanding losses.
Amazon India’s loss widened to Rs 1,724 crore in the year ended March 2015, according to the filings with the RoC.
In FY14 the loss had stood at Rs 321 crore. The collective loss incurred by the three big online marketplaces, Flipkart, Amazon and Snapdeal, amounted to Rs 5,052 crore in FY15.