eCommerce

Amazon Earmarks $631M For Its India Sectors

Amazon Earmarks $631M For Its India Sectors

Amazon is allocating $631 million (₹4,472.50 crore) to fund its Indian bureaus – Amazon Seller Services, Amazon Pay and Amazon Retail – after cutting earlier losses, Deal Street Asia reported on Tuesday (Oct. 29).

Filings with the Registrar of Companies indicated that the online giant invested roughly $480 million (₹3,400 crore) into its eCommerce marketplace Amazon Seller Services. Its payments platform Amazon Pay in India received about $127 million (₹900 crore). Amazon Retail India is expected to get roughly $24 million (₹172.50 crore).

Amazon Seller Services cut losses by 9.5 percent — about $802 million (₹5,685 crore) — for 2018-19, Reuters said, citing the Press Trust of India Tuesday’s report. Sales grew 55 percent year-on-year to about $1.1 million (₹7,778 crore) in 2018-19.

Amazon Pay India – which competes with Paytm, Flipkart’s PhonePe and Google Pay – saw losses grow to $164 million (₹1,160.8 crore) in FY19 from $47 million (₹334.20 crore) in FY18.

Amazon’s overall revenue increased 24 percent year over year in Q3, reaching some $70 billion, beating analyst estimates of $68.8 billion. (The Q3 results include sales from Prime Day.) But investors didn’t take too kindly to Amazon’s news that its fourth-quarter revenue will come between $80 billion and $86.5 billion, as analysts had expected Q4 revenue to hit $87.4 billion.

Amazon Chief Financial Officer Brian Olsavsky blamed a number of factors for that reduced Q4 guidance. Among them is the recent increase in Japan’s consumption tax, from 8 percent to 10 percent. The last time that happened, he told analysts on the post-earnings conference call, it also produced what he called a negative impact on Amazon’s sales.

The other big news from Amazon’s Q3 earnings is the continuing progress – and accumulating costs – of the company’s push to offer one-day delivery for Prime members. The initiative, launched earlier this year, has already cost Amazon some $800 million and will cost some $1.5 billion more in Q4.

Those figures underscore the stakes involved in cementing even more customer loyalty via those quick deliveries, which the company expects to play a big part in the holiday shopping season.

——————————

New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

TRENDING RIGHT NOW