Amazon Seller Services revenue up 42%; losses rise to Rs 5,849 crore

The e-commerce company's total expenses for the fiscal were reported at Rs 16,877 crore

Amazon Seller Services reported its revenue for the financial year 2019-20 (FY20) at Rs 11,028 crore, a 42 per cent jump since the last financial year. The company further reported a net loss of Rs 5,849 crore during the same fiscal. This is a 3 per cent increase from the last financial year, according to regulatory documents sourced from business intelligence platform Tofler.

The company’s total expenses for the fiscal were Rs 16,877 crore.

The revenue was generated from areas such as web-based information technology-enabled services, business-to-business wholesale trading, and wholesale electronic equipments.

“The company is confident of its future growth,” the firm said.  

The firm has increased its authorised share capital from Rs 31,000 crore to Rs 60,000 crore in an extraordinary general meeting. It has also allotted a total of 840 crore equity shares to the shareholders in the current financial year. After the closure of the financial year, it has further allotted a total of 343 crore equity shares to the shareholders.

The company has reported a 47 per cent decrease in foreign exchange outflow to Rs 777 crore, from Rs 1,473 crore in the previous year. The foreign exchange inflow has increased to Rs 1,768 crore, from Rs 655 crore.

The total statutory due under dispute from FY13 to FY18 is Rs 432 crore, out of which Rs 151 crore has been paid under protest.

In another development, Amazon Wholesale (India) reported its revenue for FY20 at Rs 3,388 crore, a 70 per cent fall since the last financial year. The company reported a net loss of Rs 133 crore during the same fiscal. This is a 5 per cent decrease from the last financial year, according to Tofler. The company’s total expense for the fiscal was Rs 3,521 crore.

E-commerce firms such as Amazon, Flipkart, Myntra, and others witnessed successful festive season sales this year. India’s online festive sale for a month — during October and November — raked in $8.3 billion in gross sales, including for brands and sellers, up 65 per cent year-on-year and exceeding forecasts, according to a report by consulting firm RedSeer.
 

Amazon has enabled digitisation of more than 1 million small and medium businesses (SMBs) in India. This year alone, more than 150,000 new sellers have joined its marketplace platform.

After Covid, the seller registration on Amazon rose 60 per cent. 

Earlier this year, Jeff Bezos-led Amazon had pledged to invest $1 billion to digitise 10 million SMBs, enable e-commerce exports worth $10 billion, and create 1 million incremental jobs by 2025.