Amazon Seller Services cuts net loss by 28% in FY24; revenue jumps 14%

Amazon Seller Services, the Indian marketplace platform of the e-commerce firm, reported a 14 per cent increase in operating revenue in the last financial year (FY24) at Rs 25,406 crore.

 

The company also reduced its net loss by 28 per cent during the year to Rs 3,469 crore, showed financial data sourced from business intelligence firm Tofler.

 

The company’s total expenses for the financial year were reported as Rs 29,062 crore. Other major costs included depreciation, depletion, and amortisation expenses of Rs 3,140.6 crore; advertising and sales promotion expenses of Rs 3,586 crore; and transportation and distribution expenses of Rs 7,488 crore.

 

Amazon Seller Services generates most of its revenue from third-party seller services, subscription services including Amazon Prime, and marketplace-related services, primarily sales of advertising services. The company provides marketing support services to related parties. It also earns royalty revenue, which represents income from licensing of digital content to related parties.

 

The company’s competitor, Flipkart Internet, the marketplace arm of Walmart-owned Flipkart, reported a 21 per cent year-on-year (Y-o-Y) growth in its revenue to Rs 17,907.3 crore in FY24. Flipkart Internet’s losses declined 41 per cent to Rs 2,358 crore, according to Tofler.

 

Amazon India’s revenue from sales or rendering of marketplace services was Rs 14,285 crore in FY24, an increase of 14 per cent.

 

The revenue from rendering of other marketplace-related services grew 23 per cent to Rs 6,649 crore.

 

Amazon is facing stiff competition from quick commerce players, as the 15- to 20-minute delivery provided by companies like Blinkit, Zepto, and Instamart is taking a significant portion of product sales away from players like Flipkart and Amazon.

 

Amazon India recently said its month-long Amazon Great Indian Festival (AGIF) 2024 witnessed 1.4 billion customer visits, the highest ever. More than 85 per cent of customers were from non-metro cities. Last year, Amazon India saw 1.1 billion customer visits during the event, with almost 4 million new customers.

 

Flipkart recently said it recorded an overall 7.2 billion visits in terms of customer engagement this festival season between September 1 and October 28.