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Amazon to open six more fulfillment centres in India

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Amazon India will open six more fulfillment centres (FCs)  in Chennai, Mumbai, Delhi and Jaipur to expand its presence in India and prepare for the upcoming festival season. The FCs will allow Amazon.in to offer its Fulfilment by Amazon (FBA) service to small business in these states.

With this, Amazon.in will have 27 fulfillment centres operational across 10 states in India with a total storage capacity of over 7.5 million cubic feet. 

Interestingly, Amazon India mentioned that 80% of the sellers used its fulfillment services. For the quarter ended September 2015, Amazon CFO Brian Olsavsky mentioned that 90% of the sellers in Amazon India use the company’s warehouse and logistics services.

Amazon continues to be bullish on India, its second largest market after the United States. Amazon CEO Jeff Bezos announced that a further $3 billion (about Rs 20,000 crore) will be invested in its India unit. With this Amazon’s total investment commitment in India goes up to $5 billion; the $3 billion announced now, plus the $2 billion investment announced back in July 2014, which the company has already completed in phases over the past two years.

As part of the $3 billion investment, Amazon Web Services launched an infrastructure region in Mumbai served from various data-centres. This is the first region in India and the sixth in the Asia-Pacific(APAC) region.

8k Indian sellers on Global Selling Programmes

Amazon, which launched its Global Selling Program for sellers in India in May last year, has over 8,000 sellers from India are selling their products on Amazon’s nine global marketplaces.

Amazon India’s financials

From the ROC data: Amazon Seller Services reported a revenue of Rs 1,022.1 crore for the year 2014-15, growth of 108.46% from the previous year. However, losses widened to Rs 1,723.7 crore during the period from the loss of Rs 321.3 crore in the previous year.

Expenses also shot up during the year to Rs 2745.7 crore, compared to Rs 490.3 crore in the preceding year. Employee benefit expenses stood at 7% of total expenses while other expenses stood at 93%.

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