Amazon Inc's net loss has gone up to Rs. 1,724 crore for its India business in the year ended March 2015, reports the Economic Times. This takes the combined losses of the 'Big 3' online firms including Flipkart and Snapdeal to Rs. 5,052 crore as the hunt for buyers by luring them with big discounts continues.
The Economic Times adds that Amazon Seller Services registered a six-fold increase in sales to Rs. 1,022 crore in 2014-15 from Rs. 169 crore the year before based on a filing with the Registrar of Companies. Amazon's reported net loss the year before was Rs. 321 crore.
Amazon India's spokesperson said its portal was the most-visited commerce site in the country and also had the fastest-growing shopping app among all ecommerce companies in 2015. "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 spokesperson said in the report.
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, finds Economic Times. It had also reported earlier how Amazon expected India to overtake Japan, Germany and the UK to become its largest overseas market and also increase the amount to be invested in India to $5 billion, as opposed to $2 billion pledged by founder Jeff Bezos earlier.
Business Insider reports that a bulk 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. It adds that Amazon India's legal expenses, too, were substantially higher than most companies at Rs. 221 crore as it faced tax issues and counterfeit claims.
Published Date: Jan 27, 2016 08:26 am | Updated Date: Jan 27, 2016 08:26 am