Seattle-based Amazon, known for its strategy of investing in the future, has reported a 77 percent plunge in profits to $197 million from $857 million a year ago in the second quarter. The sharp fall in profit has been attributed to the investments the company is making in faster growing economies like India and in video content, Reuters reported. It could lose up to $400 million in operating profit during the current quarter, Reuters reported.
Global e-commerce major Amazon.com Inc. has reportedly thrown its hat into the ring to snap up FreeCharge not only to ramp up its presence in the Indian payments space dominated by players such as Alibaba-backed Paytm, but also to steer ahead of homegrown rival Flipkart.
With the government approving Amazon’s proposed $500 million investment in the sector, the floodgates of the food retail sector seem to have been thrown open. Most analysts believe that after e-commerce, the food retail sector will be the next big space which is a low-hanging fruit say some. They expect the sector to see a few new entrants and consolidation to heat up further.
It wasn’t a coincidence that on July 10 when ecommerce giant Amazon unveiled its first Prime Day sale in India, Inside Edge, its maiden Indian Original series, was aired on Amazon Prime, the company’s video streaming platform.
American online retail giant Amazon has infused $20 million (Rs 130 crore) in Amazon Pay, with the much talked about wallet services for third-party payments finally rolling out in India.
With FreeCharge to be acquired Paytm and MobiKwik a distant second, there is only one clear leader in the digital wallet space currently. Paytm has surpassed several others in this segment and positioned itself well to rise the demonetisation wave.
Paytm and MobiKwik, India’s largest mobile wallet companies, had better pad up for their biggest competition yet. For, Amazon is preparing to enter the mobile recharge segment, which accounts for nearly one-third of spending on mobile wallets, with Amazon Pay.
Online retailer Flipkart Online Services Pvt. is said to be close to a merger with smaller rival Snapdeal as it looks to fend off Amazon.com Inc. Yet, that may not be enough in a battle with the deep-pocketed American giant that has caught up with the homegrown rival.
Seattle-based e-tailing giant Amazon.com, Inc has sought government approval to enter India’s food-retailing sector with investments totalling $515 million (Rs 3,368 crore) over the next five years. The company, which is already the number 2 player in India’s fast-growing e-commerce market, will open brick-and-mortar outlets as well, apart from an online portal.
In early signs of a reversal in fortunes, Flipkart has outrun rival Amazon India in gross sales in two consecutive months, after trouncing the US-based ecommerce company with its Big Billion Day sales in October. The Indian ecommerce giant recently witnessed a top-level management rejig.
Funded by foreign investors and parent companies, India’s leading e-commerce firms — Flipkart, Amazon and Snapdeal — have increased its losses by 51% in just one year to Rs 11,754 crore, to fund growth and dole out discounts to gain marketshare.
At Rs 11, 754 crore, the combine losses of ecommerce majors Flipkart, Amazon and Snapdeal is almost equal to the annual budget of the Indian Space Research Organisation (ISRO).
E-tailers in Asia’s third-largest economy are in fix.
With investors demanding results after pouring in millions worth of funding, companies such as Flipkart and Amazon have resorted to aggressive advertising and discounting to attract customers. But while that has paid off in terms of sales, with many online retailers seeing huge jumps in revenue for the financial year that ended on March 31, 2016, losses have mounted.
Will Amazon’s newly-launched SVOD platform Prime Video spell a turf war? Over-the-top players and market analyst note that content, pricing and ease of payment will be a key strategic area for consumers to shift preferences.
India’s OTT market already has players such as Star-owned Hotstar, Viacom18’s Voot, Netflix, Spuul and Hungama.
The global battle between Netflix and Amazon for a larger share of TV and movie viewership is all set to play out in India. Eleven months after Netflix launched its services in India, e-commerce giant Amazon has now launched its subscription-based service Amazon Prime Video.
“This is just the beginning… we are building the most customer-centric company based on a large selection, low prices and fast delivery,” says Amit Agarwal, head of Amazon India.
Want to buy property in Delhi, Mumbai, Bangalore, Pune, Gurgaon and more? Read on. Amazon, last year did two online property events to advertise their property. One with Tata Housing and the other one with Magic Bricks. Housing.com, Magic Bricks and 99acres are the main curators of properties and Amazon might be on its way to become the first broad based e-commerce firm to enter the business.
Jeff Bezos-led Amazon, which is breathing down Flipkart’s neck in India, is likely to soon list houses and apartments, or run promotional campaigns to generate leads for real estate firms, a top company source said.
The company may take a nominal booking amount (like it does in case of automobiles) to begin with, the source added. “It is too early to give out exact details.”
Online retailer Flipkart is now following global pioneers like Amazon and Google to build its own servers and networks. The move is aimed at creating a platform that responds to specific requirements. The decision to build its own servers follows painful experiences of the past. Flipkart’s first Big Billion Day sale, in 2014, was a big turning point for the company, which was able to cross $1 billion for the first time since inception. But it was also a major embarrassment for the e-commerce giant.
Amazon is encouraging customers to sign-up on Prime, its premium membership service, which is essentially the US-based e-commerce giant’s biggest loyalty program. And the hook is faster deliveries.
On October 2, leading Indian e-commerce companies will kickstart their annual festive season sales. The three months starting October are crucial for both offline and online retailers in India as they account for some 40% of the annual consumer durables and electronics sales in the country.
Leading Indian e-commerce companies began preparations for this year’s sale months in advance.
With the acquisition of Jet.com, the year-old US based ecommerce startup, Walmart Stores Inc. made its way into ecommerce. Its entry into the lucrative online retail market came at an expense of $3 billion (to acquire Jet.com).
India’s e-commerce industry could see a major shake-up if online retailer Snapdeal’s preliminary conversations with local rival Flipkart and US-based Amazon to explore a possible merger make any headway. But a Flipkart-Snapdeal merger is a more likely scenario than a deal between Snapdeal and Amazon, say analysts.
World’s largest retailer Walmart Stores Inc. has finally entered the e-commerce business with the acquisition of a one-year old startup Jet.com.