In the last financial year, Indian online shopping big three Flipkart, Amazon and Snapdeal posted a combined net loss of 5,052 crores. Providing deeper cuts in price to attract more buyers and market share these organisations have been losing considerable money for sometime now and yet there is sign of slowing down.
Flipkart lost the most with 2,000 crore. Amazon India saw a more than 600% increase in sales which was up to 1,022 crore from 169 crore year-on-year. But it made a loss of 1,022 crore at the same time. The online marketing giant confirmed another influx of 1,696 crore into their India business.
Snapdeal’s parent company Jasper Infotech reported a loss of 1,328 crore during the same time. Most of the expenditure for all of the companies was due to marketing and promotions. Amazon also had 221 crores of legal expense. A very competitive market forces companies push the prices further down. Amazon envisions India as the largest competitive market going forward.