Amazon, the global e-commerce behemoth, saw vendors selling more goods on its marketplace in India in the three months to December than in all of 2014.
The company, which has committed to investing $2 billion in India, is excited with its business in a market that is becoming increasingly attractive for global technology majors like Apple, Google, Facebook and Microsoft.
“We like the ramp there and we’re continuing to invest in India,” Brian Olsavsky, chief financial officer at Amazon, told analysts after announcing fourth-quarter results on Thursday night.
Apple, which earlier this week saw iPhone sales dip globally for the first time in a decade, said it was investing more in India. “I see the demographics there being great for a consumer brand and for people that really want the best products,” said Tim Cook, chief executive of Apple on Tuesday.
Amazon, citing data analytics firm comScore claimed it was the top e-commerce site in India throughout the very busy Diwali shopping season. Amazon does not disclose India-specific revenue or sales, but saw revenue worldwide grow 22 per cent to $35.7 billion. In 2014-15, Amazon India lost Rs 1,724 crore, much higher than sales of Rs 1,022 crore as it spent heavily on advertising to garner market share from rivals like Flipkart, Snapdeal and Shopclues. Flipkart, Snapdeal and Amazon reported accumulated Rs 5,052 crore losses in 2014-15. Flipkart earlier this month claimed it had 63 per cent of the app-based e-commerce traffic in India, thrice the size of traffic of its rivals Snapdeal and Amazon. Flipkart has over 50 million apps installed by users on their smartphones. Shopclues, which focuses on selling unknown brands to small town customers, says it is on track to be the first e-commerce firm to become profitable by 2017.