As online buying became more widespread with COVID-19 hurting the physical retail business, Amazon and Flipkart’s revenues and earnings increased significantly in FY21.
Amazon Seller Services claimed a 49% rise in revenue at Rs 16,379 cr in FY21 compared to Rs 11,028 cr in the previous year.
The marketplace units of Flipkart and Amazon have spent Rs 3800 crore on advertising for the financial year ended 31st March 2021 compared to Rs 3755.3 crore in the previous financial year, according to financial data received from business intelligence platform Tofler.
Flipkart Online, the marketplace part of Walmart-owned Flipkart, had spent Rs 1073.4 crore on advertising promotional costs in FY21 against Rs 1115 crore in the previous financial year. Amazon Seller Services, the company’s marketplace arm, boosted its advertising promotional expenses to Rs 2728.4 crore from Rs 2640.3 crore.
In FY21, Amazon Seller Services reported a 49 per cent increase in income to Rs 16,379 crore, up from Rs 11,028 crore the previous year. In addition, the company reported a net loss of Rs 4748 crore, down 19% from the previous financial year’s net loss of Rs 5849.2 crore. The company’s overall expenses for the fiscal year were Rs 21,127 crore, up from Rs 16,877.1 crore the previous year.
The income of Flipkart Internet grew by 25% to Rs 8,115 crore from Rs 6318 crore. Furthermore, the company reported a net loss of Rs 2,881 crore, up from Rs 1936.6 crore the previous year.
Flipkart India, Flipkart’s wholesale division, recorded a 25% increase in revenue to Rs 43,357 crore in the previous fiscal year. During the same financial year, the company also disclosed a 22% decline in a net loss to Rs 2,445 crore. In FY21, the company spent Rs 45,801 crore on expenses.
During the same fiscal year, Amazon Wholesale India reported a 7% drop in revenue to Rs 3,143 crore, but a 132 per cent increase in net profit to R 43 crore. The company recorded Rs 3,098 crore in total expenses for the fiscal year.
Flipkart, Amazon, Reliance JioMart, and Tata-backed BigBasket are battling it out for supremacy in India’s online retail business. In 2021, Flipkart, Amazon, and other e-commerce giants reported record festive season sales of $9.2 billion, surpassing the $5 billion reported during the festive month in 2019.
The pandemic has expedited the move to e-commerce, with a greater number of people shopping online than the previous year.