Amazon's India units have demonstrated improved financial performance in fiscal year 2025 (FY25), achieving significant reductions in losses through strategic cost management while also experiencing a notable uptick in revenue growth. This dual achievement highlights the company's increasing operational efficiency and its successful efforts to enhance profitability within India's competitive e-commerce market.

Amazon Seller Services, the marketplace arm of Amazon India, reported a substantial 89% decrease in losses, bringing the figure down to INR 374.3 crore, a considerable improvement from the INR 3,469.5 crore loss recorded in FY24. This marks the second consecutive year that Amazon Seller Services has managed to cut its losses, building upon a 30% reduction in the previous fiscal year. This significant narrowing of losses occurred alongside a robust 19% year-on-year increase in operating revenue, which reached INR 30,138.6 crore in FY25, up from INR 25,406 crore in FY24.

The growth in revenue can be primarily attributed to the diverse range of services Amazon offers to its third-party sellers, including logistics support, platform access, advertising opportunities, and Amazon Prime subscriptions. Marketplace services remain the largest revenue contributor, generating INR 17,328.1 crore in FY25, a 21% increase from INR 14,285.1 crore in FY24. Advertising revenue also played a crucial role, surging 25% to INR 8,342 crore.

In comparison, Flipkart Internet, the marketplace arm of Flipkart, reported revenues of Rs 20,493 crore for fiscal 2025, up 14%, while its net losses fell 37% to Rs 1,494 crore.

The improved financial performance of Amazon Seller Services can be attributed to disciplined cost management and increased revenue from marketplace services and advertising. While the company's total expenses did rise by 6% to INR 30,865.6 crore in FY25, this increase was slower than the growth in revenue, allowing for a significant reduction in losses. Several expense categories saw reductions, including employee benefit expenses, which decreased due to cuts in stock-based compensation. Advertising expenses also saw a decrease of 5% year-on-year. Delivery charges, however, increased by 11% year-on-year.

Amazon Pay (India) Pvt Ltd, the digital payments arm of Amazon India, also narrowed its net loss by 5% to ₹866 crore in FY25, even as revenue from operations declined 7% to ₹2,195 crore from ₹2,365 crore in FY24.

Amazon India is preparing for its flagship sale event, the Amazon Great Indian Festival (AGIF), and has invested heavily in its network, adding 12 new fulfillment centers and expanding six others. The company expects strong traction from tier-II and tier-III cities.

These financial results indicate that Amazon's India operations are on a stronger financial footing, driven by a strategic focus on efficiency, cost control, and revenue diversification.