Amazon's Business Challenges in India: A Few Instances of Revenue Leakage
Amazon.com’s business in India has been expanding rapidly, but internal diseconomies of scale are preventing the operations from running smoothly.
Rather than focusing on others' experiences, I’ll share two simple instances where Amazon.com is losing money in India:
I ordered a pair of crocs, but the size I received was larger than my feet. I applied for a refund and return. While the money was refunded, the seller never came to collect the shoes. It’s been over a year now, and the shoes are still with me.
I ordered a Maths Olympiad book for my child, but received a Mathematics book meant for JEE/IIT instead. The value of the book I received is much higher than the Math Olympiad book I originally ordered. Though the book is not useful to me, I’ve been waiting for any follow-up on the issue, but there’s been no query or response after two months.
These are clear examples of revenue leakage. While the amounts involved may be small for Amazon, these inefficiencies add up over time and contribute to losses.
