In a significant financial turnaround, Amazon India’s marketplace division, Amazon Seller Services, has reported a dramatic reduction in its losses for the fiscal year ending March 2025 (FY25). The company slashed its losses by nearly 90%, bringing them down to INR 374.3 crore, a substantial drop from INR 3,469.5 crore recorded in FY24.
This is the second consecutive year that Amazon Seller Services has managed to cut its losses, following a 30% reduction in FY24. The steep decline in losses highlights the company’s growing operational efficiency and strategic push to boost profitability in India’s competitive e-commerce space.
Operating Revenue Crosses INR 30,000 Cr Mark
The sharp fall in losses comes amid a strong surge in revenue, underscoring the robust performance of Amazon India’s core marketplace operations. Amazon Seller Services recorded a 19% year-on-year (YoY) increase in operating revenue, reaching INR 30,138.6 crore in FY25, up from INR 25,406 crore in the previous fiscal.
The revenue growth is primarily attributed to the company’s broad suite of services offered to third-party sellers, including logistics support, platform access, advertising, and Amazon Prime subscriptions. However, the largest revenue contributor continues to be its marketplace services, which include fees earned by facilitating transactions on its e-commerce platform.
Marketplace Services See 21% Growth
Amazon’s marketplace services alone generated INR 17,328.1 crore in FY25, marking a 21% increase from INR 14,285.1 crore in FY24. This segment continues to dominate the company’s revenue stream, reflecting strong demand from third-party sellers who rely on Amazon’s vast platform to reach Indian consumers.
Revenue Breakdown: Diversification Pays Off
While marketplace services remain the core contributor, Amazon Seller Services also earns from:
- Amazon Prime subscriptions
- Advertising income
- Fulfillment and logistics services
These additional revenue channels highlight Amazon’s strategy of diversifying its income streams beyond just transactional fees. By offering a complete ecosystem of services to sellers and buyers alike, Amazon is positioning itself for long-term growth in India’s dynamic e-commerce market.
Strategic Focus on Efficiency and Cost Control
The near-90% reduction in net loss is also a result of tight cost control measures and operational streamlining. Amazon has been increasingly focusing on automation, tech-driven logistics, and optimizing advertising monetization — all of which contribute to its improved financial performance.
Conclusion: Stronger Financial Footing Ahead
With FY25 marking a milestone year, Amazon Seller Services’ improved financials send a strong signal about the company’s strategic focus on sustainable growth. The increase in revenue and drastic reduction in losses show Amazon is not just scaling in size, but also maturing as a business in one of the world’s most promising e-commerce markets.
As the Indian online retail space continues to expand, Amazon’s disciplined approach to cost, tech integration, and seller enablement could further improve profitability in the years ahead.
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