The company apprised its investors about the losses in a presentation made to the e-commerce firm’s shareholders, the report further said. Amazon, is an American electronic commerce and cloud computing company based in Seattle, Washington that was founded by Jeff Bezos on July 5, 1994.
E-commerce behemoth Amazon’s global business has taken a big hit in term of losses in the first nine months of 2017. The primary reason behind the losses are big investments made in India, Times of India reported. Amazon’s losses have reached $2.1 billion for the time period mentioned against nearly $800 million in the corresponding period in the previous year, the report added. The company apprised its investors about the losses in a presentation made to the e-commerce firm’s shareholders, the report further said. Amazon, is an American electronic commerce and cloud computing company based in Seattle, Washington that was founded by Jeff Bezos on July 5, 1994. Here are the major reasons behind the losses:
- Heavy investments made in India are adding to the company’s losses.
- In order to take on its rival Flipkart in India, Amazon is offering global products at heavy discounts in India.
- Despite India being a loss making proposition, the e-commerce major has invested around Rs 2,000 crore.
- It has invested heavily on Amazon Seller Services as well.
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. As per the latest filing, Amazon Corporate Holdings and Amazon.com.incs has made the Rs 1,950 crore investment in the Indian unit. The board of directors of Amazon Seller Services passed the resolution at their meeting on January 12, 2018. The fresh funds will provide more arsenal to Amazon.in. The company has been aggressively investing in expanding infrastructure and adding solutions to enhance consumer and seller experience. Amazon founder Jeff Bezos has committed investments to the tune of $5 billion for the Indian market. The American company has also been pumping in funds to its other entities in India, including Amazon Pay and its wholesale business. These investments have been directed towards building warehouses, strengthening logistics and increasing product assortment. Amazon is also investing significant money in marketing and promotions as the company looks to bring more consumers into shopping online on its platform.