Amazon Seller Services Trims Loss 89% To INR 374.3 Cr

Amazon Seller Services Trims Loss 90%, Revenue Crosses INR 30K Cr In FY25

SUMMARY

Amazon Seller Services reduced its losses in FY25 to INR 374.3 Cr, a nearly 90% decline from the INR 3,469.5 Cr loss recorded in the previous fiscal year

The company’s operating revenue crossed the INR 30K Cr mark in the fiscal, zooming 19% to INR 30,138.6 Cr from INR 25,406 Cr in the prior fiscal year

Amazon Seller Services earns revenue by providing third-party seller services, Amazon Prime subscription services, advertising income, among others

Amazon India’s marketplace arm, Amazon Seller Services, sharply reduced its losses in FY25, reporting a loss of INR 374.3 Cr — a nearly 90% decline from the INR 3,469.5 Cr loss recorded in the previous fiscal year. This marks the second consecutive year of loss trimming, following a roughly 30% reduction in FY24, driven by a strong uptick in its top line.

The decline in losses comes on the back of a jump in its top line. The company’s operating revenue crossed the INR 30K Cr mark in the fiscal, zooming 19% to INR 30,138.6 Cr from INR 25,406 Cr in the prior fiscal year.

Amazon Seller Services earns revenue by providing third-party seller services, Amazon Prime subscription services, advertising income, among others.

The greatest chunk of its operating revenue came from facilitating transactions on its platform. The revenue generated from selling the marketplace services in the fiscal year stood at INR 17,328.1 Cr, marking a 21%increase from INR 14,285.1 Cr revenue generated by this segment in the previous fiscal year.

Besides, revenue generated from the rendering of other market place related services surged 26% YoY to INR 8,342.2 Cr. While marketing related services revenue dipped 4% YoY to INR 2,368.4 Cr, revenue from marketplace services offered to related parties increased 3% YoY to INR 1,805.5 Cr.

The annual filings with the MCA reveal that it is currently facing tax demands worth a whopping INR 4,097.8 Cr across India for violations of various taxation laws including GST Act, Income Tax Act among others. Of this, the company is currently contesting tax demands worth INR 4,067 Cr.

Breaking Down The Expenses

The company’s expenses rose 6% to INR 30,865.6 Cr in FY25 from INR 29,062.3 Cr spent in FY24.

Employee Expenses: These expenses declined by about 4% to INR 2,656.5 Cr from INR 2,771.2 Cr in the previous fiscal. While employee salaries remained almost flat at INR 1,913.9 Cr, share based compensation declined by about 22% YoY to INR 532.9 Cr.

Delivery Charges: Spends under this head rose 11% YoY to INR 8,336.7 Cr.

Advertising Expenses: The ecommerce major cut its ad expenses by 5% YoY to INR 3,406 Cr.