Amazon-Owned Firms Spend Rs 6000 Cr On Adv

According to financial information received by business intelligence portal Tofler, advertising expenditures by Indian companies controlled by ecommerce Amazon totalled Rs 5957.9 crore in FY22. This is a 25 per cent increase over what the corporations spent on advertising in FY21.

Amazon Seller Services, Amazon Internet Services, Amazon Wholesale India, and Amazon Pay India are responsible for advertising expenses. Together, the four businesses spent close to Rs. 4768 crores on advertising in FY21. In FY22, Amazon Seller Services, the Indian marketplace division of Amazon, spent Rs 3426.4 crore on advertising and promotion, a 26 per cent increase from Rs 2728.4 crore the year prior.

A 21 per cent rise over Rs 1967.2 crore in FY21, Amazon Pay India, the firm that houses the operation of the online payments, paid out Rs 2380.9 crore for advertising and promotion costs.

The advertising and promotion costs for Amazon Wholesale India, the wholesale division of Amazon India, have increased by 144 per cent to Rs 95.2 crore from Rs 39 crore.

In comparison to the previous fiscal year, Amazon Internet Services—which serves as a seller of Amazon Web Services (AWS) services in India, has spent 55.4 crore rupees on advertising and promotional costs. Spending on advertising rose 66 per cent between FY21 and FY22.

In FY22, Amazon Seller Services reports an increase in revenues by 32 per cent to Rs 21,633 crore. In addition, the company has disclosed a net loss of Rs 3,649 crore for the same fiscal year. This represents a 23 per cent drop from the previous fiscal year. For the fiscal year, the company has reported having spent a total of Rs 25,283 crore.

Revenues from Amazon Wholesale India are Rs 4,605 crore, up 47 per cent from the previous fiscal year. In addition, the company has disclosed a net loss of Rs. 480 crores for the same fiscal year. The company has claimed to have spent Rs 5,086 crore in total during the fiscal year.

Amazon Pay India has reported revenue of Rs 2,052 crore, an increase of 16 per cent from the previous fiscal year. Additionally, the company has disclosed a 15 per cent increase in net loss for the same fiscal year, coming in at Rs 1,741 crore. According to reports, the corporation spent a total of Rs 3,793 crore during the fiscal year.

In FY22, Amazon Internet Services reported a 65 per cent increase in revenue, totalling Rs 8,982 crore. Net loss for the company increased by 112 per cent to Rs 2.3 crore. The company claimed to have spent Rs 8905 crore in total during the fiscal year.