According to a latest report, a total capital of Rs. 4,472.50 crores will be invested on amazon seller, amazon pay and amazon retail , by Amazon.
Investment distribution
The largest part will be invested on amazon seller services as it handles the marketplace business and takes up most of the cash because of marketing, promotions and deep discounts.
Amazon pay will get a total of Rs. 900 crores to keep funding the cashbacks and to add get in more merchants.
Amazon retail will receive Rs. 172.50 crores to run its full-fledged food retail business and also have its own private grocery supply chain and label.
The competition
This investment happens close to when flipkart had decided on taking a food license and investing around Rs 2500 crores on it. With the secured internal approval, The ‘Flipkart Farmer Mart Pvt Ltd hopes to give a boost to the Indian Agriculture and food processing industries according to the Flipkart Group CE, Kalyan Krishnamurthy .
The competition between amazon and flipkart has always been driven by profits, and now even more as flipkart is majorly owned by amazon’s arch rival, Walmart.
The ultimate goal
Amit Agarwal, Global Senior Vice President and Country Head, Amazon India in conversation with Money control said that they want amazon to be where most Indians start their journey and the place where they love amazon enough to become prime members and also be a place where the sellers find growth.
Pic Source: Sky news
