At a time when country’s top eCommerce players are struggling hard to manage their cash burns and investors’ pressure of grooming up balance sheets and turn positive, global eCommerce giant Amazon has once again managed to stand straight in terms of investments in India.
In its recent quarterly investor meet, CFO, Brian Olsavsky said that company’s sales for the fourth quarter (2015) were greater than a full year 2014. This is because of the Amazon Great Indian Sale campaign, launched during the Diwali festival which drew huge traffic to its website for the month. Amazon was also declared the top eCommerce website during country’s shopping season by comScore data (Indianretailer reported earlier).
This achievement can surely be a big threat to its peers in the country as eCommerce firms are now under colossal pressure of regular y-o-y losses. On the other hand, Amazon said that its worldwide profit jumped upto 22 percent to $35.7 billion. It ceased the year 2015 with $107 billion in sales. The company on a global level nabbed a profit of $482 million for the last quarter.
But the story doesn’t ends here! Amazon now seeks a stronger foothold in the country and hence is now open for business in India. The company is vigorously planning to bring thousands of big –small merchants and sellers online. With a master plan to invest more than $2 billion in India, Amazon will surely trigger consolidation in the online retail space leveraging offline sellers.
Commenting on the same, Olsavsky said, "We are seeing great progress with downloads, innovations for sellers and customers alike. And we like the ramp there and we're continuing to invest in India."
Recalling its last quarterly results, Amazon said that its India sales had scaled exponentially with a seller base growth of a massive 250 percent. Even Amazon Seller Services had scored a 6 times increase in sales to 1,022 cr, according to a filing with the Registrar of Companies.