On the back of a rise in its top line and improvement in margin, Amazon Seller Services’ net loss narrowed 28.5% YoY to INR 3,469.50 Cr in FY24
Amazon Seller Services’ operating revenue jumped 14.4% to INR 25,406 Cr from INR 22,198 Cr in FY23
Its total expenditure rose 6.5% to INR 29,062.3 Cr from INR 27,283.6 Cr in FY23
Amazon Seller Services, which operates the marketplace business of Amazon India, saw its revenue jump 14.4% to cross the INR 25,000 Cr mark during the financial year ended March 31, 2024. Operating revenue stood at INR 25,406 Cr in FY24 as against INR 22,198 Cr in FY23.
The company earns revenue by providing third-party seller services, Amazon Prime subscription services, advertising income, among others.
Including other income of INR 186.8 Cr, total income for the fiscal stood at INR 25,592.8 Cr.
On the back of the rise in its top line and improvement in margin, Amazon Seller Services’ net loss narrowed 28.5% to INR 3,469.50 Cr in FY24 from INR 4,854.1 Cr in the previous fiscal year.
In the fiscal, the company also allotted 83 Cr equity shares to its US-based parent entity on January 15, 2024. Of this, 82.99 Cr shares were allotted to Amazon Corporate Holding Pvt Ltd for INR 829.96 Cr. Besides, 38,346 shares were allotted to Amazon.com.incs Ltd for INR 3.83 Lakh.
Then, on April 15 this year, it raised INR 1,660 Cr from its US parent via the allotment of 166 Cr equity shares.
Where Did Amazon India Spend?
The rise in the company’s revenue outpaced the increase in its expenses. Total expenditure rose 6.5% to INR 29,062.3 Cr from INR 27,283.6 Cr in FY23.
Transportation & Distribution Expenses: Being an ecommerce marketplace, transportation and distribution was the biggest expense for the company. It spent INR 7,487.9 Cr under the head during the year under review, up about 9% from INR 6,863.1 Cr in FY23.
Employee Benefit Expenses: The company cut its employee cost by 0.8% to INR 2,771.2 Cr in FY24. Employee costs include salary, PF, gratuity, among others.
Legal Expenses: Amazon’s spending on legal expenses declined about 2% to INR 3,530.2 Cr from INR 3,598.8 in the previous year.
Advertising & Promotional Expenses: Spending under the head grew 12% to INR 3,586.1 Cr from INR 3,209 Cr in FY23.
Miscellaneous Expenses: These expenses stood at INR 5,132.4 Cr, up 5% from the INR 4,875.8 Cr it spent in FY23.
