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Amazon scales its F&B businesses
May 13, 2021
Amazon has been strengthening its hold on the grocery, food and FMCG verticals through a combination of Amazon Pantry, Amazon Fresh and Amazon Retail in India. While Pantry and Fresh are customer facing verticals feature on its Indian commercial center, Amazon Retail fulfils demands created by the two.
Amazon Retail, which had begun operations in FY19 with a food and refreshment permit from DIPP, has scaled at a fast speed in FY20. The organization’s yearly budget reports sourced from the MCA shows that its income from operations climbed 414% to ₹714.4 crore in FY20 from ₹139 crore in FY19.
Amazon Retail procure traded goods from discount channels and manufacturers which are then sold on its commercial center. It spent ₹636.3 crore on acquisition of staple merchandise, representing 62.4% of its yearly costs. The costs developed by 275.2% from ₹169.6 crore spent on these purchases in FY19.
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