Amazon India's largest seller Cloudtail reports surge in losses

Nishant

Nishant

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Largest seller for Amazon India reports surge in losses

Cloudtail India, the largest seller for the Indian arm of e-commerce giant Amazon, generated total losses of `31.7 crore for the year ended March 31, 2015, according to a company filing on registrar of companies. The losses swelled manifold from Rs 14,035 in the previous year.

Total revenues for FY15 were clocked at Rs 1,145 crores where Rs 1,139 crore were generated from daily operations and remaining Rs 6.4 crore from other income for the year. Cloudtail's operating revenues include revenues from sale of traded goods worth `1,027 crore, income from promotional services worth Rs 110.7 crore and scarp sales of Rs 1.5 crore.
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I am going to guess that it is just semantics (is this the right word?). No company is going to operate at a loss unless there is a larger picture which exists here.
 
chromaniac said:
I am going to guess that it is just semantics (is this the right word?). No company is going to operate at a loss unless there is a larger picture which exists here.
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I don't know. This sure looks correct though. I think what Amazon is trying here is , they want to be the Google when it comes to online shopping. Whenever someone opens a browser, mostly try to see if google opens or not. and most people use google for search. Amazon is just investing in a time where internet and people who uses internet are still getting used to online shopping. If they do this for next 7-8 years, they sure can attain their goal.. And what comes after that is pure profits. Amazon has this much cash , that they can do this for next 30 years. This is my theory. No big shot invester likes to make little and for shorter time. They are thinking for future. And it's a perfect plan and they are executing it quite wonderfully.
 
I had bought so many items from cloudtail in last 1-2 yrs. I stopped from about 6 months.
 
Obviously they are competing with Flipkart and both are selling products at wafer thin margins leading to losses. The problem for Flipkart is that eventually, its VC funding will run out but Amazon has potentially unlimited funds to continue this stalemate.
 
I think Flipkart has already realized this.

In country like India where there is no shortage of buyers - you will never have sufficient funds to sell things at reduced price for everyone - for 4-5 yrs non-stop.

Because funds needed to keep all happy is just too huge.

Plus we Indians are expert in creating multiple identities!!
 
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