US headquartered e-commerce giant, Amazon reported a $936 million loss from its international business unit for the three months period ending September, 2017.
US headquartered e-commerce giant, Amazon reported a $936 million loss from its international business unit for the three months period ending September, 2017. The loss comes on the backdrop of the company’s heavy investment in India. On the losses in international operations without providing a country wise breakup, Amazon CFO Brian T Olsavsky said, “It is international expansion and primarily in India where we are continuing to add benefits. And we launched Prime there a year ago, if you remember, and we have had more Prime members join in India than in any other country in the first 12 months.”
Amazon’s continued investments in India and its intense competition with Flipkart has had an impact on its overall international operations. While in the June quarter the company reported international loss of $724 million, it incurred a loss of $481 million for the quarter ending March 2017.
Despite heavy loss, the company said it is satisfied with the company’s growth momentum seen in India. Brian T Olsavsky, said, “We had the first Prime Day sale there this year, Prime Music, Amazon Business are also expanding in India. So, a lot of positive momentum and investment is going on in India, we are very pleased with that. We also recently announced Echo and Alexa will be available in India”. Amazon has already committed an investment of $5 billion in its India operations and has been steadily expanding with the launch of new services. Amazon’s main rival in India – Flipkart raised $1.4 billion from Tencent, eBay and Microsoft followed by another $2.5 billion from Softbank.