Amazon India Losses Grow To Rs. 6,287 Crore
Amazon is fast becoming the country most popular market place, however it is also losing money fast. The company suffered a loss of Rs. 6,287 crore for the FY 2017-2018 from Rs. 4,831 crore compared to last year. The venue for Amazon in India however, grew 54% to Rs. 5,018 crore from Rs. 3,257 crore.
According to Amazon the increase in the losses was due to improvements in the Amazon India infrastructure. The company spent big this year to increase its fulfilment centres and improve technology which includes the launch of the GST equipped Business Amazon. The company also increased its total spending to Rs. 11,305 crore compared to Rs. 8,087 crore done by the e-commerce giant last year.
Amazon hopes to rake in large incomes from the three waves of sales the company had in the month of October and the ongoing Diwali Sale. The company also expects business to be up in the month of November and December 2018 due to large festive shopping.
The company pays its full time directors of Amazon Seller services about Kandula Raghava Rao and Noorulamin Mohd Saheb Patel a combined Rs 5.5 crore in salaries a year. The company also claims to have filed Rs. 96.8 crore “under protest” in taxes to income and service tax departments. Amazon has grown substantially and now services 99% pin codes in the country.
Amazon’s Rival in India, Flipkart India Private Limited reported a nine fold net loss of Rs. 2064 crore as compared to Rs. 245 crore in the previous financial year. One the flip side, Flipkart’s revenues rose by 39.11% to Rs. 21,658 crore from Rs. 15,569 crore.