Despite its global business making losses due to India, Amazon continues to maintain that India is a good story. The US e-taling giant Amazon’s global business recorded losses in the first nine months of 2017 – the reason being India. The e-commerce major recorded $2.1 billion for the time period mentioned against nearly $800 million in the corresponding period in the previous year. The losses from its international operations widened to $919 million for the December 2017 quarter. “India continues to be a good story for us. We feel that it’s had a lot of growth in the past year. In fact, more Prime members joined India’s Prime programme in the first year than we’ve seen in any other country in the history of the world, our world,” Amazon Senior VP and CFO Brian Olsavsky said in an investor call. So, the company still thinks India is a good bet despite making losses here. Amazon registered 38 percent rise net sales to $60.5 billion in the fourth quarter, compared with $43.7 billion in the December 2016 quarter.
The reasons behind the losses accruing in India are these:
Amazon, is an American electronic commerce and cloud computing company based in Seattle, Washington. It was was founded by Jeff Bezos on July 5, 1994. Here are the major reasons behind the losses:
Just days back, Amazon infused fresh capital to the tune of Rs 1,950 crore into its India unit, Amazon Seller Services to strengthen the war-chest of the company against domestic rival, Flipkart. Amazon Seller Services has so far received over Rs 8,000 crore (about $1.28 billion) during this financial year from its US parent, as per documents filed with the corporate affairs ministry.