AMAZON CLOCKS 105% RISE IN REVENUE FROM MKTPLACE ARM
BENGALURU: Amazon India said on Wednesday that revenue at its marketplace arm more than doubled in the year ended March, as the online retailer expands rapidly in a country where it is locked in a bruising battle with local rival Flipkart.
Amazon Seller Services’s revenue rose 105% in the year, said an Amazon India spokeswoman, although regulatory filings by the firm showed a rise of 41%. The spokeswoman said the difference in growth was due to one-time charges she declined to specify.
“Comparing like to like, Amazon marketplace revenue in India grew by +105% for the year ending March 31, 2017. The annual returns filings include other line items,” the spokeswoman said, without revealing the exact comparable figures.
According to its latest regulatory filings with the ministry of corporate affairs, Amazon Seller Services posted revenue of ₹3,129 crore in the year to March, compared with sales of ₹2,217 crore in the previous year.
Amazon India said the latest figures in its annual report are not comparable on a like-to-like basis with last year’s numbers, due to what the company refers to as “inter-company charge-outs”.
Inter-company charge-outs basically refer to revenue that Amazon India earns from its parent company. Amazon India typically generates sales in three ways—primarily by collecting commissions from third-party sellers through its marketplace arm; providing marketing services to other Amazon-controlled firms; and, wholesaling of Kindle e-book readers and accessories.
These one-time charges can include services such as marketing and advertising.