Amazon India sales leap to Rs1, 022 crore
Amazon India, online market, announced a six-fold leap in sales to Rs1, 022 crores for the year ending March 31, 2015. The online retailer's net loss climbed to Rs1, 723.6 crores during the year 2015. This financial result highlights the company's quick expansion and its high spending on advertising, logistics and discounts.
Amazon Seller Services Pvt Ltd, the Indian division, had announced sales of Rs168.9 crore and a net loss of Rs321.3 crore for the year 2014, Livemint said. Amazon India breeds revenues in three different ways, offering marketing services to various companies controlled by Amazon; through wholesale of Kindle e-book readers and by gathering commissions from third-party traders.
Amazon India along with its rival firms like Snapdeal and Flipkart Ltd is involved in a posh battle for the nation's e-commerce sales and are anticipated to cross over $50 billion by 2020, Livemint said quoting a report by the financial service company UBS.
The e-commerce companies are providing high discounts throughout the year, hiring staffs to gain customers and setting huge warehouses to win the battle for high market share. Flipkart Internet Pvt. Ltd and Flipkart India Pvt. Ltd reported a combined net loss of around Rs2,000 crore for the year 2015, which is an increase from the net loss of Rs715 crore last year. Sales at these two entities powered by Flipkart amounted to Rs10, 390 crores, Livemint said citing documents filed with the Registrar of Companies.
Snapdeal, another peer in the industry, noted a loss of Rs1.328.01 crore for 2015, compared with a loss of Rs264.6 crore last year.
The Economic Times said that Amazon India joined fresh products in the range of 40,000 per day previous year. Moreover, 90 percent of Amazon India's traders utilize its warehousing and logistics service. Amazon India's portal was the frequently visited website in the nation and had the speedy growing shopping app among other e-commerce firms in 2015, reports quoted a spokesperson of Amazon India.
In October, senior VP for international business, Diego Piacentini told The Economic Times that the company anticipates India to overwhelm the UK, Germany, and Japan to become the largest foreign market.
The Techportal said that Flipkart recently appointed Binny Bansal as the Chief Executive Officer and Sachin Bansal as the Executive Chairman. In addition, Snapdeal stepped into the logistics business by purchasing stakes in GoJavas to fasten order deliveries.
The reports also said that Amazon has injected $250 million into its Indian division in its effort to fight rival firms Snapdeal and Flipkart for the local market. Amazon has applied various strategies, since its period of inception in India, like low price, speedy delivery, and huge product selection to win the popularity among sellers.