Amazon Seller Services revenue zooms 54% to Rs 7,594 crore in FY19

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Published: October 29, 2019 12:10:34 AM

Amazon and Walmart-controlled Flipkart are locked in an intense competition to grab a larger share of India’s burgeoning e-commerce market. Analysts say the companies spend heavily on customer acquisition and beefing up infrastructure.

Revenue from operations, however, increased by 52% to Rs 4,234.5 crore in FY19 against FY18. (Representational image)Revenue from operations, however, increased by 52% to Rs 4,234.5 crore in FY19 against FY18. (Representational image)

Amazon Seller Services, the marketplace entity of Amazon India, reported a 54.07% increase in revenue from operations to Rs 7,593.5 crore in the year to March 2019 compared to the year-ago period.

Net losses of the firm reduced by 9.57% year-on-year to Rs 5,685.4 crore in FY19, according to the company’s RoC filings sourced from business signals platform Tofler.

Amazon and Walmart-controlled Flipkart are locked in an intense competition to grab a larger share of India’s burgeoning e-commerce market. Analysts say the companies spend heavily on customer acquisition and beefing up infrastructure.

Both the firms jointly hold 80% market share in India’s e-commerce sector, according to analysts. Flipkart and Amazon sold goods worth $3 billion in the six-day festive sale that ended on October 4, a report by market research firm RedSeer Consulting showed.

Flipkart Internet, reported losses of Rs 1,625.7 crore in FY19 on a consolidated basis compared to losses of Rs 1,160.6 crore posted in FY18. Revenue from operations, however, increased by 52% to Rs 4,234.5 crore in FY19 against FY18.

Recently, e-commerce firms have come under government scanner due to violation of foreign direct investment (FDI) norms. The government’s revised FDI norms bar e-commerce firms having foreign investment like Flipkart and Amazon from selling products of the entities in which they hold stake or whose inventory they control.

The government is also in the process of formulating an e-commerce policy that proposes regulating cross-border data flows, setting up storage facilities locally and establishing a data authority to devise a framework for sharing data.

Separately, Amazon Wholesale India’s losses increased to Rs 140.80 crore in FY19 against losses of Rs 131.40 crore reported in FY18, data from Tofler showed.
Amazon Pay India losses soar 247%

Amazon Pay India’s net losses jumped by 247% to Rs 1,160.8 crore in the year to March 2019 compared to the year-ago period.

Revenue from operations increased by 107% to Rs 806.5 crore year-on-year in FY19, according to the company’s RoC filings sourced from business intelligence platform Tofler. Rival Google Pay’s profits grew by 75.14% to Rs 32.77 lakh in FY19 compared to the year-ago period, company’s filings released last week showed.

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