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Amazon Seller Services in India Reduces Losses: Let’s See How They Managed Expenses

Amazon Seller Services, which manages the commercial operations of Amazon India, achieved significant growth in operational efficiency and revenue during the financial year 2024 (FY24). The company successfully controlled expenses while leveraging its programs, advertising campaigns, and customer-centric services to drive revenue growth.

Transportation and LogisticsHere's a breakdown of how Amazon Seller Services managed its expenses:

ഗതാഗതവും വിതരണവും
As an e-commerce marketplace, transportation and logistics remain the company's most significant and costly segments. In FY24, Amazon spent ₹7,487.9 crore on transportation, compared to ₹6,863.1 crore in FY23—a 9% increase.

Employee Expenses
In FY24, expenses on salaries and other employee benefits amounted to ₹2,771.2 crore, a 0.8% decrease from FY23.

Legal Expenses
Legal-related expenses stood at ₹3,530.2 crore in FY24, down by 2% from ₹3,598.8 crore in FY23.

Advertising
Advertising and promotional expenses rose by 12%, reaching ₹3,586.1 crore in FY24, compared to ₹3,209 crore in FY23.

Miscellaneous Expenses
Other expenses increased by 5%, reaching ₹5,132.4 crore in FY24, up from ₹4,875.8 crore in FY23.

In addition, during this fiscal year, the company issued 83 crore new shares, increasing investments and paving the way for growth.

Key Highlights
Loss Reduction by 28.5% The company's net loss reduced by 28.5%, coming down to ₹3,469.50 crore in FY24, from ₹4,854.1 crore in FY23.

Revenue Growth by 14.4%
Operating revenue grew by 14.4% to ₹25,406 crore in FY24, compared to ₹22,198 crore in FY23. Including other income, the total revenue reached ₹25,592.8 crore.

Overall Expense Growth by 6.5%
Total expenses increased by 6.5%, reaching ₹29,062.3 crore in FY24, compared to ₹27,283.6 crore in FY23.

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Author

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Jeroj

Date

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November 16, 2024

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