Amazon Seller Services revenue rises 19% as losses narrow sharply

Amazon India's marketplace arm posted Rs 30,139 crore revenue in FY25, with losses narrowing sharply to Rs 374.3 crore as marketplace and advertising growth boosted efficiency

Amazon Seller Services, the marketplace arm of Amazon India, reported a 19 per cent increase in revenue from operations to Rs 30,139 crore for the financial year ended March 2025, according to regulatory filings with the Registrar of Companies (RoC) accessed via data platform Tofler.

 

The unit’s losses narrowed 89 per cent to Rs 374.3 crore, signalling improved operational efficiency at the e-commerce giant’s Indian marketplace business.

 

Rival Flipkart Internet, the marketplace arm of Flipkart, reported revenue of Rs 20,493 crore in FY25, up 14 per cent year-on-year. Its net losses narrowed 37 per cent to Rs 1,494 crore, according to RoC data. The growth marked a slowdown from the 21 per cent rise in FY24, after two consecutive years of more than 20 per cent expansion.

 

 

Amazon Seller Services generates revenue from third-party seller services, Amazon Prime subscriptions and related marketplace offerings. The sharp reduction in losses reflects disciplined cost management and stronger revenue from marketplace services and advertising, highlighting the unit’s evolving business model beyond basic e-commerce transactions.

 

Marketplace services revenue climbed 21 per cent to Rs 17,328 crore in FY25, accounting for 57 per cent of total operating revenue. Advertising revenue rose 25 per cent to Rs 8,342 crore.

 

While total costs increased 6 per cent to Rs 30,865 crore, Amazon implemented targeted expense reductions. Employee benefit expenses declined by Rs 115 crore to Rs 2,656 crore, while payment processor fees fell 15 per cent to Rs 1,789 crore, reflecting greater transaction efficiency.

 

The revenue growth marked a rebound from the modest 3 per cent rise in FY23, though it remained below pandemic-era levels when growth was 49 per cent in FY21 and 32 per cent in FY22. The moderation reflects the normalisation of online shopping as physical retail recovered.

 

Meanwhile, Amazon has expanded its ultra-fast delivery service Amazon Now, which promises 10-minute deliveries of essentials in Bengaluru, Delhi and now Mumbai, as it deepens its presence in India’s quick-commerce market dominated by Blinkit and Zepto.

 

The company has opened more than 100 micro-fulfilment centres across Mumbai, Delhi and Bengaluru to support Amazon Now. Hundreds more facilities are planned by year-end as Amazon races to capture market share in instant delivery.

 

Amazon India is repositioning itself as a comprehensive business partner, slashing seller fees and introducing artificial intelligence-powered tools ahead of the festive season, which is expected to shape retail performance for the year.

 

Earlier this year, the company reduced referral fees to zero for 1.2 crore products priced below Rs 300. It also cut fees across fast-moving categories such as fashion and home appliances. These moves aim to help its 1.7 million sellers—more than half from smaller cities—capitalise on India’s peak shopping period.

 

Amazon expects its flagship sale event, the Amazon Great Indian Festival (AGIF), to be its biggest yet. AGIF 2025 is scheduled to begin on September 23, with Prime members receiving 24 hours of early access. Rival Flipkart is also preparing for its Big Billion Days sale during the same period.

 

To prepare for the surge, Amazon has invested heavily in its network, adding 12 new fulfilment centres (FCs) and expanding six others. The company expects strong traction from tier-II and tier-III cities.