According to Tofler data, Amazon Seller Services' losses decreased to Rs 3,649.2 crore in FY22 from Rs 4,748.1 crore in FY21. The retailer's operating loss was also reduced to Rs 1,285.9 crore for the fiscal year ending March 20, 2022, down from Rs 2,970.6 crore the previous year. Revenues from operations increased by 32.4% to Rs 21, 462 crores during the period.
Amazon Seller Services operates a marketplace through which it sells products both online and in person in India and around the world.
According to Bernstein analysts, a decade after establishing a presence in India and investing $6.5 billion, Amazon India's report card is mixed. According to the analysts, India is one of Amazon's largest overseas markets, as well as one of its fastest-growing, with a best-in-class customer experience and a large Prime customer base. "Yet, this expansion has come at a high cost, with over $6.5 billion+ invested to date, while profitability remains elusive (-5-10% Ebitda margins)," they noted.
According to the analysts, the company faces intense competition in rapidly growing categories, a weaker value proposition in 'New' commerce, limited traction in tier 2/3 cities, and an unfavorable regulatory environment for outsiders. They also noticed that newer players, such as the SoftBank-backed Meesho, are gaining traction in the faster-growing tier 2/3 cities, where Amazon has struggled to gain traction due to low pricing and 'zero commissions.'