Amazon India: Embracing Customer Centricity

Amazon India is once again in the top five of the BW Businessworld Most Respected Companies list this year based on high scores on parameters like 'trustworthy leadership', 'effective growth plan', and 'work culture', among others. Last year too, it was ranked third in the same list.    

For those not familiar with the intricacies of Amazon's presence in India, it might initially appear as a monolithic entity. However, a closer look reveals a vibrant tapestry of diverse ventures under its expansive umbrella. Foremost among these is Amazon Seller Services, the familiar face of the e-commerce behemoth in India, connecting customers with a plethora of products and services. Yet, the Amazonian landscape in India is far more nuanced, encompassing an array of ventures that cater to diverse needs.

Take, for instance, Amazon Pay (India), a dynamic digital payments arm facilitating seamless transactions within the bustling online marketplace. Delving deeper, we encounter Amazon Internet Services, the purveyor of AWS cloud computing solutions tailored for the Indian market. In addition, there's Amazon Data Services India, providing crucial IT infrastructure and hosting support to bolster the operations of AWS in the region.

But the narrative doesn't end there. Amazon's presence extends into essential logistical domains with Amazon Transportation Services, ensuring swift and reliable delivery of goods to eager customers. And let's not forget the bedrock of it all: Amazon Retail India and Amazon Wholesale India, the engines driving commerce at both retail and wholesale levels.

The cumulative result of these ventures paints a picture of resounding success, with Amazon in India boasting a combined revenue of approximately Rs 45,000 crore in the fiscal year 2022-23 (FY23). Impressively, this feat is accompanied by a notable narrowing of losses across its various entities, a testament to the resilience and adaptability of Amazon's ecosystem in India.
Operating within the dynamic landscape of the private sector, these financial insights are gleaned from reports meticulously compiled by our esteemed knowledge partner, TechSci Research.

Consistent Performer
It has been a fantastic journey for Amazon in India. Today, Amazon India has grown its seller base to over 14 lakh adding about 3 lakh new sellers in FY23, said Manish Tiwary, Country Manager, India Consumer Business, Amazon India. The company aims to digitise one crore businesses by 2025. Today, it is delivering to all serviceable pin codes in India. 

Amazon India witnessed commendable growth in its revenue from operations, which surged to Rs 22,198 crore in FY23 from Rs 21,462 crore in the previous fiscal year. Notably, Amazon Seller Services saw a remarkable 28 per cent increase in advertising revenue, from Rs 4,171 crore in FY22 to Rs 5,380 crore in FY23. Meanwhile, Amazon Web Services India experienced substantial growth, with revenue reaching Rs 12,781 crore in FY23, marking a 43 per cent improvement from Rs 8,956 crore in the preceding year. However, Amazon Transportation Services (ATS) faced a slight setback, reporting a marginal decline in operating revenue to Rs 4,543 crore in FY23 from Rs 4,571 crore in FY22.