This marks an impressive 33% increase from the previous fiscal year’s Rs 8,705 crore, according to regulatory filings by both companies.
Amazon Seller Services, the Indian marketplace arm of the global e-commerce giant Amazon, reported a substantial 24% increase in revenue from “other marketplace-related services,” amounting to Rs 6,649 crore—a notable rise from Rs 5,380 crore in the previous fiscal year. The “other marketplace-related services” category primarily comprises income from advertising, which is recognised based on clicks or impressions delivered to users.
Flipkart Internet, the marketplace arm of Walmart-owned Flipkart, recorded an even more impressive 50% surge in advertising revenue for FY24, reaching Rs 4,972 crore, compared to Rs 3,325 crore in the previous year.
Experts attribute the surge in ad revenue for Amazon Seller Services and Flipkart Internet to increasing internet penetration and the growing trend of online shopping in India. Enhanced ad tech capabilities, including investments in AI and machine learning, have enabled these platforms to offer innovative ad formats and precise targeting.
As a result, Amazon and Flipkart have become key digital marketing channels, attracting a diverse range of advertisers seeking to engage with India’s expanding online consumer base.
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“The significant growth can be credited to the robust advertising capabilities offered by retail media platforms. By leveraging consumer intent signals derived from purchase behaviours and content consumption patterns on the platform, these systems enable the strategic placement of advertiser content. This approach has led to higher engagement rates and improved ROI for advertisers,” said digital marketing expert Sajal Gupta.
