Amazon India is right now worth at $16 billion and has the same 30% market

share as local competitor Flipkart, in accordance with another record from Citi
Exploration. That is in nation which has a $2.6 trillion Gross domestic product
developing at 6-7%annually. Amazon entered the India region in 2013, and
presently can't seem to demonstrate a profit. Be that as it may, it's caught
roughly 30% of the Indian online business commercial center, and is ready to
build up that 23% every year until 2027. That would recommend Amazon
India would accomplish $70 billion in gross product degree and $11 billion in
income.

Financial Performance
Amazon.in is worked in India by Amazon Merchant Administrations Pvt Ltd. In just its third year of
tasks, in FY 14-15 it figured out how to cross INR 1,000 crore in income, developing around
multiple times over the earlier year. Its income remained at INR 1021.9 crores against lost INR
1723.7 crores. Out of this, INR 977 crores was the income from operations. Last financial they had
announced an income and loss of INR 169 crores and INR 321 crores, separately. In examination,
rival Snapdeal had detailed an income of INR 938 crores in a similar period, with lost INR 1319
crores

1. Income from marketing support services from marketing and promotional services provided
to its group companies.
2. Income from marketplace services from operating an internet portal, which facilitates online
sale of goods by registered merchants.
3. Sale of traded goods which includes Kindle book reader and its accessories.

1. Income from advertising and marketing support offerings from advertising and promotional
services supplied to its group corporations.
2. Income from marketplace offerings from operating an internet portal, which allows on-line
sale of goods by way of registered merchants.

3. Sale of traded items which includes Kindle e book reader and its accessories.

Following chart illustrates a break-up of the same

https://trak.in/tags/business/2016/01/25/amazon-financials-india-revenue-inr-1022cr-with-loss-inr-
1724cr-f15/

Revenue model defines how a firm aims to generate higher return on investment and profits. Important e-commercerevenue
models include advertising, subscription, transaction fee, sales, and affiliate revenue models (Laudon andTraver, 2009). Market
opportunity gives description of possible revenue a company is likely to generate from its proposed marketspace.

Amazon’s strategy involves discounts, low prices and wide range of products sold via direct selling or marketplace.
In the U.S., by contrast, Amazon holds and sells its own inventory of toys, books, and more in addition to sellinggoods from
third-party sellers. The Indian Government, however, plans to allow foreign companies that manufacturetheir products in the
country to sell them directly to consumers over the Internet. But Amazon would have to startmaking its products in India to take
advantage of the change in the law.
Amazon’s model in India differs slightlyfrom the business model in United States. As we discussed earlier that Indian
government doesn’t allow companies with major foreign ownership to operate retail locations having their own inventory.
Because of this, Amazon serves as a middle man between sellers and buyers, and doesn’t sell any inventory of its own. But,
Amazon helps sellers with warehousing and shipping goods.In the U.S., by contrast, Amazon holds and sells its own inventory of
toys,books, and more in addition to selling goods from third-party sellers

https://www.academia.edu/34534554/BUSINESS_MODEL_OF_AMAZON_INDIA_A_CASE_STUDY
Revenue Model
Amazon has a diverse revenue model.

 The primary source of revenue for Amazon is the commissions and fees that it obtains by making
the borrowers and sellers meet. Amazon doesn’t sell a lot of stuff on its own. It just provides a
marketplace guaranteeing a standardized experience for both the buyers as well as the sellers.
 Amazon also derives a huge chunk of its revenues from affiliate programs. Amazon provides
affiliates with stores within their sites. It then charges a larger commission on their sales.
 Amazon also sells advertising space on its website. The Amazon site is one of the most visited
pages in any region. Hence, sellers can expect to boost sales by advertising on it. This is a
miniscule portion of the revenue that is generated by this company but is nonetheless significant.
 Amazon also makes a huge chunk of money from the Kindle marketplace. Amazon has
developed and sold a device called Kindle. It can be used to read books in the electronic format.
Thanks to this device, Amazon has a 75% market share in the eBook market. Also, this market is
highly profitable for Amazon. Books sold by this model do not have to be published or
transported. Amazon, therefore, pockets the share of the publisher as well as the logistics firm.
Amazon gets close to 70% of the revenue generated by selling eBooks on Kindle.
 Lastly, Amazon has also developed subscription based business models via its Amazon Prime
service. For a fixed subscription users get two benefits. Firstly, users can stream movies and
other video content via the internet. Secondly, Amazon Prime members are entitled to lightning
fast delivery of the products purchased from Amazon.

https://www.managementstudyguide.com/business-model-of-amazon.htm