Streaming ads set to contribute more in next 1-2 years, while marketplace remains dominant

- Sowmya Ramasubramanian & Sakshi Sadashiv

Amazon India's advertisement revenue engines, which already outpace its e-commerce business, may get further fuel with the expansion of Amazon Now, as the quick commerce venture opens up more advertising space.

Yet the company still has catching up to do, since rivals Blinkit, Zepto, and Instamart are already far ahead in the game on their established quick commerce apps.

Amazon India’s advertising and allied services revenue grew 25% in FY25, against a 21% growth in its mainstay marketplace business, making it one of the fastest-growing segments, data from business intelligence platform Tofler showed.

However, the marketplace remains the backbone; it contributed 317,328 crore, or 58% of operating revenue, while ads and logistics brought in another ₹8,342 crore. The balance ₹4,468 crore came from other services. The Tofler data showed Amazon Seller Services posted a 19% jump in revenue to ₹30,139 crore in FY25, up from ₹25,406 crore a year earlier, as more customers transacted on its platform. Losses shrank sharply, with the net loss narrowing 89% to ₹374.3 crore from ₹3,469.5 crore in FY24, driven by tighter cost control and improved operating efficiency. To this, Amazon Now is expected to add a fresh stream of advertising revenue.

Marketplace is the consumer-facing platform, while Amazon Seller is the corporate entity running and monetising that marketplace, earning money from seller commissions, fees and ads.

Amazon India appears to be in the middle of a pivot, where its anchor remains online retail, with advertising becoming the tail