Amazon India sees 27% revenue jump in wholesale business even as net loss widens by nearly 200% | The Financial Express

Amazon India sees 27% revenue jump in wholesale business even as net loss widens by nearly 200%

Ease of Doing Business for MSMEs: Amazon Wholesale (India) Private Limited, the wholesale unit of Amazon’s India arm referred to as Amazon Business, offers businesses bulk buying of over 15 crore GST-enabled goods.

Amazon India sees 27% revenue jump in wholesale business even as net loss widens by nearly 200%
Amazon Wholesale aka Amazon Business, launched in September 2017, has completed five years in India. (File image)

Ease of Doing Business for MSMEs: Amazon Wholesale (India) Private Limited, the wholesale unit of Amazon’s India arm referred to as Amazon Business catering to MSMEs and other enterprises, reported a 26.9 per cent jump in its revenue to Rs 4,605 crore in the financial year 2021-22 from Rs 3,628 crore in FY21. The revenue from operations increased from Rs 3,618 crore to Rs 4,592 crore even as net loss widened by 196 per cent to Rs 480 crore from Rs 161 crore during the said period, showed regulatory filings sourced from the business intelligence platform Tofler on Tuesday. The annual growth numbers come ahead of the Diwali festive season and Amazon’s Great Indian Festival sale.

Amazon Wholesale offers businesses bulk buying of over 15 crore GST-enabled goods and on the other hand, allows manufacturers or distributors including small or large enterprises as sellers to multiply their customer reach through the marketplace model.

The company’s total expenses excluding depreciation shot up from Rs 3,787 crore in FY21 to Rs 5,083 crore in FY22. Amazon had last infused Rs 650 crore into Amazon Wholesale (India), regulatory documents from Tofler in November 2021 showed.

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Importantly, Amazon Wholesale aka Amazon Business, launched in September 2017, has completed five years in India. The company is currently organising Small Business Month from September 12 to September 18, 2022, to commemorate its five-year journey. During this period, the business reported 4543 per cent growth in its seller base to 6,50,000 from 14,000, Suchit Subhas, Director, Amazon Business told FEAspire recently.

Amazon Wholesale offers products across multiple categories such as IT products, office supplies, cleaning supplies, packaging supplies and more. It is present in nine countries including the US, Germany, Canada, UK, Italy, Spain, France, Japan and India.

Meanwhile, in order to boost seller participation on the Amazon India marketplace ahead of the festive season, Amazon has announced reducing the selling fee by 50 per cent for new sellers across all categories registering on Amazon.in between August 28 to October 26 and launching within 90 days from the date of registration. The selling fee is one of the fees paid by sellers for selling goods on the Amazon India marketplace and is calculated as a percentage of the total sales price paid by the buyer.

Also read: Govt looking for in situ solutions for MSMEs: FM Sitharaman on deriving benefits from India’s workforce

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First published on: 13-09-2022 at 16:18 IST