Amazon Seller Services, the entity that operates the Amazon marketplace in India, narrowed down its standalone net loss by over 89% year-on-year (YoY) to Rs 374.3 crore in the financial year ended March 2025 (FY25), according to regulatory filings with the Registrar of Companies.

The company had reported a standalone net loss of Rs 3,469.5 crore in the preceding financial year.

Revenue from operations surged nearly 19% to Rs 30,138.6 crore in FY25 from Rs 25,406 crore a year ago, helped by growth in advertising and marketing businesses.

In comparison, Flipkart Internet, the marketplace arm of Walmart-owned Flipkart, reported a 37% decline in its consolidated net loss at Rs 1,494.2 crore in FY25, compared to the Rs 2,358.7 crore loss it logged a year ago. Meanwhile, its operating revenue grew more than 14% to Rs 20,493.3 crore in FY25 from Rs 17,907.3 crore in FY24.

How Did Amazon Marketplace Arm Generate Revenue?

Amazon Seller Services generates revenue primarily from third-party seller services, subscriptions, including Amazon Prime, and other marketplace-related services, which primarily include the sale of advertising and marketing support services for affiliates.

It also earns royalty revenue from licensing of digital content to related parties.

Marketplace fee income stood at Rs 17,328.1 crore in FY25, accounting for 57% of its total operating revenue. In FY24, this segment reported a revenue of 14,285.1 crore.

Revenue from advertising services zoomed over 25% to Rs 8,342.3 crore in FY25 from Rs 6,649.2 crore in the previous year.

Breakup of Expenses

Amazon Seller Services managed to reduce its losses substantially, thanks to tighter control over expenses. The company’s total spending rose a little over 6% to Rs 30,865.6 crore in the financial year ended March 2025 from Rs 29,062.3 crore a year ago.

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  • Transportation Distribution Expenses: The primary driver of the company’s expenses was delivery cost, which surged 11% to Rs 8,336.7 crore in FY25 from Rs 7,487.9 crore in FY24.
  • Legal Professional Charges: Amazon Seller Services spent a staggering Rs 4,155.4 crore in legal and other professional expenses during FY25, up nearly 18% from Rs 3,530.2 crore last year. 
  • Employee Cost: The company reduced its spending under this head by over 4%, bringing it down to Rs 2,656.5 crore in FY25 from Rs 2,771.2 crore in FY24, primarily by cutting back on stock-based compensation for employees.
  • Reimbursement for Damages of Fulfilled Inventories: The company reimburses third-party sellers for inventories that are damaged by Amazon, its carrier or delivery partners. The spending under this bucket rose almost 7% to Rs 2,390.5 crore in FY25 from Rs 2,244.1 crore in the preceding financial year.
  • Payment Processor Fee: The company managed to cut its spending under this head by more than 15% to Rs 1,789.6 crore from Rs 2,111.9 crore in FY24.

Amazon’s reduced net loss is particularly…


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Last Update: September 18, 2025