Coronavirus Impact: Amazon India’s struggle amid lockdown
Created on 05 May 2020
Wraps up in 1 Min
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Updated on 29 Aug 2020
Amazon India’s struggle amid lockdown And, a cursory view of IRCTC stock.
While India is struggling to flatten the curve (of Coronavirus positive cases), it might have unintentionally flattened the earnings growth curve of Amazon. We’re saying this Amazon recently announced that the biggest impact that the company faced due to the impact of pandemic was in India. According to Brian T Olsavsky, Senior Vice President and Chief Financial Officer of Amazon, the company is just waiting for the orders from the government to resume operations.
Amazon India is currently bound to deliver only essentials and groceries which is why it is reporting losses. Electronics and fashion goods form the major sources of revenue for the ecommerce giant but, since the government has restricted sale of all other goods except essential goods, the company has to just hold on. By the way, the international business (including India) has reported a loss of $398 million!
What Does it Mean for Amazon India?
The government applied the brakes on Amazon India’s revenue growth due to unusual circumstances. But, that’s not the only issue that the company is facing. Rise of Walmart owned Flipkart and a promising entry of Jio Mart is also troubling the ecommerce giant in India. Once, the lockdown is lifted and specially the restrictions on sale of goods are lifted, it will be interesting to see if Amazon India comes up with some innovative strategy to counter its competitors and get back on track.
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