In its recently released earnings report for the quarter ended June 30, 2023, US-headquartered ecommerce giant Amazon has showcased some ambitious plans for its operations in India. The company stated that it aims to achieve cumulative ecommerce exports of $20 billion, digitize 10 million small businesses, and create 2 million jobs in India by the year 2025.
Amazon Impressive Progress in India’s Ecommerce Market
Celebrating its 10-year presence in India, Amazon highlighted its successful efforts in the country. The company’s India unit has already facilitated cumulative ecommerce exports surpassing $7 billion. These accomplishments signify Amazon’s commitment to fostering India’s economic growth through its ecommerce platform.
Strong Financial Performance
In Q2 2023, Amazon’s net profit reached an impressive $6.75 billion, a notable improvement compared to the loss of $2.03 billion reported in the same period the previous year. While the international segment still accounts for 22% of Amazon’s global earnings, North America remains the primary revenue driver, contributing to a significant 61% of the company’s total earnings.
Amazon Web Services’ Role in Revenue Generation
Amazon Web Services (AWS), the ecommerce giant’s cloud infrastructure arm, played a significant role in Amazon’s financial performance. During the three months ending June 30, 2023, AWS contributed nearly 17% to the company’s total revenue. The continued growth of AWS showcases the importance of cloud services in Amazon’s overall business strategy.
Expanding Investments in India
Amazon’s strategic plans for India come on the heels of a meeting between CEO Andy Jassy and Prime Minister Narendra Modi in June. Following the meeting, Jassy announced Amazon’s commitment to invest an additional $15 billion in India over the next seven years, taking the total investment to $26 billion. A substantial portion of this investment, $12.7 billion, will be directed to AWS to meet the growing demand in the country.
Amazon’s determination to bolster its operations in India highlights the fierce competition between the company and Walmart for a significant share of India’s trillion-dollar ecommerce and retail market. While Amazon has grown organically in India, Walmart’s acquisition of Flipkart in 2018 gave it a head start in the market. Both Amazon and Walmart continue to vie for dominance and capture the offline retail market in the country.
Also Read The Latest News:
Amazon’s determination to bolster its operations in India highlights the fierce competition between the company and Walmart for a significant share of India’s trillion-dollar ecommerce and retail market. While Amazon has grown organically in India, Walmart’s acquisition of Flipkart in 2018 gave it a head start in the market. Both Amazon and Walmart continue to vie for dominance and capture the offline retail market in the country.
Also Read The Latest News:
BYJU’S misses deadline for signing amendment to $1.2 billion term loan
Tech enthusiast Sohan Rai’s viral drone delivery experiment with Zomato sparks controversy and excitement
The post Amazon unveils ambitious plans for India: Aims for $20 billion ecommerce exports and 2 million jobs by 2025 appeared first on StartupNews.fyi.
