Amazon's international losses cross $3bn in 2017 on India business growth

Amazon’s international losses ballooned to over $3 billion dollars in 2017 on the back of its India business, where it is fighting off domestic rival Flipkart recently backed by Softbank.
International losses grew to $3 billion in 2017 from $1.28 billion in 2016, while international sales jumped to $54 billion from $43.9 billion. In the quarter ended December, Amazon’s international losses stood at $919 million, almost double the loss of $487 million in the December quarter of 2016.
As one of the highlights in the latest earnings report, Amazon said more new paid members joined Prime in 2017 than any previous year. Amazon Prime vice president Greg Greeley had told ET earlier that India was the fastest-growing market in terms of Prime membership globally.
“India continues to be a good story for us. We feel that it's had a lot of growth in the past year. In fact, more Prime members joined India's Prime program in the first year than we've seen in any other country in the history of our world,” Amazon’s chief financial offier Brian Olsavsky said during an earnings call on Thursday. 
Prime eligible selection in India grew over 25 million items, and the company also held its first Prime Day sales in the country in July last year. Amazon Prime Music is also set to be launched in India soon.
Amazon Prime was offered at an introductory price of Rs 499 when it started in India in July 2016 and the subscription was increased to the original level of Rs 999 late last year.
Amazon also said it introduced all-new Alexa experiences built from the ground up for customers in India and other countries such as Japan and Canada.
A 2016 report by Bank of America Merill Lynch said that Amazon India will be the company's largest market outside of US, accounting for over a fifth of the Amazon's total international sales by 2025. The report estimated Amazon India unit to hit $81 billion in gross merchandise value (GMV) and $2.2 billion in operating profits.
ET reported this week that Amazon has pumped in record capital into its main India unit this financial year, with Amazon Seller Services rceiving Rs 8,150 crore, or about $1.3 billion, so far in 2017-18. The capital infusions came more frequently last year after Flipkart raised $4 bn last year from SoftBank and other investors such as Tencent, Microsoft and eBay.
Amazon’s net sales increased 38% to $60.5 billion in the fourth quarter, compared with $43.7 billion in fourth quarter 2016, as the company rode the wave of the shopping days such as Black Friday and Cyber Monday as well as Christmas and New Year’s. For whole of 2017, net sales increased 31% to $177.9 billion, compared with $136.0 billion in 2016.
The net income was $3.0 billion compared with net income of $2.4 billion in 2016.

Trending News

Facebook face big challenge to prevent future US election meddling

Intel hit with 32 lawsuits over security flaws

Apple promises fix for serious Telugu character bug

GrabOnRent launches operations in Mumbai and Gurgaon

Crypto fall fails to drown initial coin offerings

Kalpnik uses AR & VR to help people 'go' to any place of worship

SpaceX is launching its broadband satellites into orbit this weekend

Unilever threatens to cut back online ads over 'toxic' content

Google hires former Samsung Mobile CTO to coordinate Internet of Things projects

Go-Jek plans India foray in second half of 2018

Pivoting away from Cube brought us to the right route: PayU's Jitendra Gupta

Ola parent to invest Rs 400 crore to boost Foodpanda India logistics & tech

Alibaba plans tighter integration of Paytm Mall with BigBasket & XpressBees

MakeMyTrip posts wider loss in Q3, may revisit OYO strategy

Google fined Rs 135.86 crore by CCI for 'search bias'

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Toyota, Suzuki to produce electric vehicles for India market by 2020

Qualcomm rejects Broadcom's $103 billion offer

Fashion e-tailer Voonik asks staff to forgo 3 months' salary

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities