MUMBAI: As per the report, Amazon India Losses in business goes up to Rs 1,724 crore in the year ended March 2015. The reason of such a huge loss occurred because of Amazon‘s expenses was due to higher advertising, sales and promotion costs of almost Rs 1,405 crore, almost equivalent to the combined marketing spends of Godrej Consumer, Dabur and Marico.
However, Amazon Seller Services registered a six-fold increase in sales to Rs 1,022 crore in 2014-15 from Rs 169 crore a year earlier, according to a filing with the Registrar of Companies on Saturday.
- The combined losses of the ‘Big 3’ online firms including Flipkart and Snapdeal to Rs 5,052 crore as they hunted for buyers by offering deep discounts.
- Flipkart, India’s largest e-commerce firm, reported a loss of about Rs 2,000 crore in the year ended March compared with a loss of Rs 715 crore in the previous year.
- Jasper Infotech, which runs e-commerce marketplace Snapdeal.com, reported a loss of Rs 1,328 crore for the year ended March.
“At the end of Q3-2015, we saw an approximately 500% Y-O-Y growth in volume, and in Q4-2015 we sold more than we did in all of 2014. We are committed to investing aggressively with a long-term horizon and transforming the way India buys and sells,” the Amazon spokesperson added.
The Indian unit of the world’s largest consumer marketplace added products at the rate of 40,000 a day last year and 90% of its sellers use its logistics and warehousing services. Amazon expects India to overtake Japan, Germany and the UK to become its largest overseas market, besides becoming the quickest to reach $10 billion in gross merchandise value, Diego Piacentini, senior vice-president for international business, told ET in October.