The founder, chairman, and chief executive officer of Amazon.com, Jeff Bezos, said on Wednesday that the progress seen in Amazon India business, in the last five years of operations is very “energizing”. Bezos mentioned in a letter to the customers on the homepage of Amazon.in, that the company was launched in India on June 5, 2013 with a vision to revolutionize the way India buys and sells.
He further wrote that the progress in just five years has been energizing and he is highly humbled and energized by the opportunities ahead. Bezos mentioned illustrations of growth in areas like customer and seller addition, delivery infrastructure and also products like Alexa and Kindle, which have been a success in India.
In order to compete with its home-grown rival Flipkart in India, Amazon has pumped in substantial funding and is all set to expand its operations in the country and also build a stronger delivery infrastructure. Bezos has already dedicated an investment of $5 Billion in the Indian market. The rivalry between these two e-commerce giants is set to intensify following another US retailer Walmart’s announcement of acquiring 77% stake in Flipkart with a deal of $17 Billion, last month.
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As per Media reports, Amazon is looking forward to ramping up its investment in Indian market by around $2 billion, which will give the Indian Amazon unit more ammunition. However, the company has not yet officially commented on these reports. Amazon has been injecting funds into its various establishments in India, including its marketplace, Amazon Pay and wholesale business. All these investments have been aimed towards strengthening logistics, building warehouses, and increasing product assortment.
Brian Olsavsky, Amazon chief financial officer, said during a recent investor call that the company would continue to invest in India as they see great potential in Indian e-commerce market and progress as well, with both sellers and customers, even as the parent entity filed a loss of $622 million from international entities in the first quarter of 2018. Not only this, but the company is also investing remarkably in promotions and marketing as it aims to attract more customers to its online retail platform.
As per regulatory documents registered with the corporate affairs ministry, the Indian marketplace unit of the US e-commerce firm, Amazon Seller Services, saw its losses widen from INR 3,679.9 crores in the previous year to INR 4,830.6 crores for 2016-17 revenue. The company said that the increase in net loss is due to investments made towards opening new fulfilment centres, establishing infrastructure and technology advancements.
However, Amazon Seller Services also saw its fiscal rising 43% from INR 2,276 crore in the previous financial year to INR 3,256.6 crore in the year ended March 2017. The company, further said that it is confident of its future growth in India with its latest investments in launching new products and better services for its sellers and customers.