Growth of Amazon Seller Services grows 42 pc compared to Flipkart Internet’s 32 pc

Amazon Seller Services, the marketplace arm of Amazon India, saw a growth of 42 per cent in revenue to Rs 11,028 crore for the financial year ended March 2020. The growth happens to be faster than of rival Flipkart’s marketplace arm Flipkart Internet which grew 32 per cent to Rs 6,318 crore in the same period. Hence, one can say that Amazon’s marketplace was almost double the size of that of Flipkart’s.

Amazon Seller Services, which generates revenue from marketplace fees, logistics services and other fees, incurred 3 per cent higher loss at Rs 5,849 crore in the year. The Flipkart marketplace arm’s losses rose by a little over 19 per cent to Rs 1,937 crore.

Both Amazon India and Flipkart operate in India through multiple units which house businesses like wholesale, payments and logistics.

Amazon’s marketplace services and marketing support services were the two biggest revenue sources for the entity. They totally contributed nearly Rs 4,950 crore and Rs 1,683 crore respectively. Its total expenses rose by over 25 per cent to Rs 16,877 crore. Delivery and advertising and promotional expenses were two of its biggest avenues of spending. It spent Rs 4,603 crore for the former and Rs 2,640 crore for the latter.