India hit hardest among global markets: Amazon
BENGALURU: Amazon has seen the 'biggest impact' of the virus outbreak in India in its international markets due to the Indian government allowing the sale of only essential products through e-commerce, its chief financial officer Brian Olsavsky said during the call. of profit on Friday, even when His global leadership by the US domestic market reached a record. This occurs when e-retailers in India are upset, especially since last week, when the government allowed offline stores to gradually open and sell all items. Ecommerce companies are still unable to sell non-essential items. The prolonged blockade is supposed to be lifted after May 3, but the government is expected to issue guidelines on it.
Separately, data obtained last week from Marketplace Pulse, which tracks Amazon markets worldwide, showed that overall sales declined by 80-90% compared to the days leading up to closing. The data also shows a sharp decline in sales compared to sales for the last holiday season and Christmas.
I think the biggest international impact has been in India, where, of course, we, like other companies in India, are now only complying with our essential products, such as groceries. So that has greatly reduced our offer, and we will expand further when the Indian government announces that we can resume operations. So we are in a kind of waiting pattern, except for supermarkets in India, said Olsavsky. On Thursday, the head of Amazon India had tweeted urging the government to open e-commerce for all goods and not just essentials. Amazon India did not respond to a TOI inquiry about India market sales data.
Amazon's international business, which has India, experienced growth losses of four times to almost $ 400 million compared to $ 90 million during the same quarter last year. Both sales ($ 19 billion) and losses ($ 398 million) decreased sequentially compared to the quarter that ended in December 2019, when it reported sales of close to $ 24 billion and losses of $ 617 million.
Groceries and other essentials typically contribute about 10% of total e-retailer sales here. In its April 20 issue, TOI reported quoted Forrester estimates that e-commerce growth in India could drop to zero after the government changed its stance to allow online sales of non-essential products. Earlier this week, the company also launched a new line of credit for consumers for their grocery purchases and utility bills amid a liquidity crisis.
Globally, Amazon posted 26% growth in sales of more than $ 75 billion for the quarter and posted lower-than-expected earnings of $ 2.5 billion, down 29%. Amazon mentioned that it could spend up to $ 4 billion in the second quarter to address virus-related expenses, a significant part of which would be for the safety of its workers. In the USA In the USA, the company has faced protests from its warehouse workers who have carried out strikes over unsafe working conditions.