Ecommerce News

Amazon top seller Appario’s revenue dips 8% in FY23, Retail News, ET Retail


Appario Retail–the largest seller on Amazon India–has reported an 8% drop in revenue for FY23 at Rs 14,604.2 crore, reflecting a slowdown on Amazon’s ecommerce marketplace in the country.

Appario Retail reported a marginal rise in profit for FY23 at Rs 84 crore against Rs 82 crore in FY22, according to its regulatory filings with the registrar of companies sourced from business intelligence platform Tofler.

Amazon Seller Services, which runs the India marketplace, had recorded a muted 3.4% growth in revenue for FY23 at Rs 22,198 crore while its losses expanded by 33% to Rs 4,854 crore. In FY22, the same entity had reported a 32% growth in operating revenue and reduced its losses by 23%.

“While both Flipkart and Amazon India are still loss making, the nearly flat growth in topline is a clear indication of slowdown in growth,” a senior ecommerce industry executive said.

Operating revenue of Appario – a joint venture between Amazon and Patni group – is a crucial indicator of Amazon’s growth in India. Appario sells products across electronics, appliances and other top grossing segments on the marketplace.

An email sent to an Amazon India spokesperson did not elicit any response on Appario financials and its implications on Amazon India business.

ET reported on November 24 that Amazon is considering options to let Appario Retail continue to sell on the platform, reversing an earlier decision to shut it down because latest FDI rules restrict marketplaces from holding stake in seller entities.

However, continuity of operations of Appario could be crucial for Amazon to get back to a faster rate of growth.

Shutting Cloudtail – which was one of the largest sellers on the platform and was part-owned by Amazon – last year had disrupted its operations. Amazon has faced hurdles while trying to transition from reliance on Cloudtail to other seller entities run by different promoters even when most of them were being run by former Amazon or Cloudtail executives.

Multiple sources have said Amazon has been in discussions with promoters of new seller entities to invest more in the business as well as incentivising deals on the marketplace.

But most are yet to match Appario, considering the latter remains the largest seller on the platform.

“Appario is thus still continuing and there is no change in the near future,” one of the suppliers to the seller firm said.

Its financials underscore the softness in demand for ecommerce in India. ET has been reporting that while value growth is being driven by sale of premium items, lower ASP (average selling price) products have seen stress in demand. During the recently closed festive season sale also, high-value items drove the demand online but volumes were impacted.

“Growth was there in our top-end items, but the mass market items driving volume didn’t see equal demand. It is still higher than a normal day, but compared to previous festive sales, the growth was muted,” a senior executive at a leading electronics accessories brand said.

Meanwhile, a top-level reshuffle is underway at the local arm of the Seattle-based etailer, ET reported on December 1.

  • Published On Dec 2, 2023 at 09:05 AM IST

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