Amazon’s international operations saw net sales of a little over $27 billion during Q2 compared with $30 billion in the year-ago period.
“Broadly speaking of what’s going on with that business and the losses we’re seeing there and the investments, I think it’s important to remember it’s early in many of our international countries, particularly in some of our emerging or more recent launch countries such as India, Brazil, the Middle East,” Dave Fildes, director, investor relations, Amazon, said in a post-earnings call.
He added there was a $231 million worth unfavourable impact included in the $1.7 billion loss.
Germany, the UK, and Japan are considered established international markets for the Seattle-based ecommerce major.
“In our emerging locations, there’s a healthy amount of investment we’ve done to drive expansion. We expect to continue to do that given the strong competition across many of these markets.” Fildes added.
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Last month, Amazon India’s country manager for the consumer business
Manish Tiwary told ET it will double down on social commerce and local kirana stores to acquire additional 500 million users. Amazon has been in India for nine years and counts more than 100 million users here.
“I strongly believe that to get to the next 500 million customers, we need a couple of million more sellers on this marketplace. This set of new sellers will largely be physical stores,” Tiwary told ET last month.
In total, Amazon recorded net sales of over $121 billion in Q2 compared to $113 billion in the year-ago period. It recorded a loss of $2 billion in the quarter under review.
