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Amazon heavily dependent on Diwali sale for revenue

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MUMBAI: Not only do Indians eagerly await Diwali but so does Amazon it seems. The largest online retailer across the world has published a mixed result for the third quarter. While its revenue fell short of Wall Street expectation, it posted a record profit. On the other hand, despite the growth in domestic business, the international business showed a significant slowdown. Interestingly, a late Diwali in India has been cited as the reason which shows how crucial the Indian market has become for it.

“There's also material change in the Diwali calendar in India. About half of our Diwali sales last year were in Q3. This year they'll be fully in Q4. So those are a couple factors that hit the international growth area in particular,” Amazon chief financial officer Brian T Olsavsky said in an earnings call.

In India, Amazon is already fighting the domestic player Flipkart which is now backed by Walmart. The first leg of Diwali sale from both the player was around same time. Despite Flipkart’s popularity in India, three fold number of people signed up on Amazon to shop in the first two days compared to last year.

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“We've seen great response from customers. We've had 60 per cent growth in new customers during the period. Orders are coming in from 99 per cent of the pin codes in the country. So, great first wave of the, what we call the Amazon's Great Indian Festival, which lead into Diwali,” Olsavsky added.

Advertising has been one of the major areas where the company reaped high profit. The revenue from the unit representing its display, sponsored product and other advertising revenue jumped 123 per cent, more than double the growth rate a year earlier.  While it is locked in a battle with Google, Facebook for digital ad pie, the company has made it clear that it won’t go down the road of ad-supported Amazon Prime Video soon.

Amazon Prime membership, the card at hand to turn more consumers into shoppers, has continued to grow in US, as well as other countries. The company claims to be satisfied with the renewal data and annual sign up data since the price increase earlier this year.

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“Since then, program remains very strong, both in membership and engagement, and a lot of our video content, music and shipping definitely as well as other Prime Benefits. We just continue to see that ramp up, not only in the US, but in other countries. So we do continue to make the Prime offer better as well,” Amazon CFO said.

Although the slowdown in international business led to fall in shares, it continued to reduce losses, which came down to $385 million in Q3 from $494 million in Q2. However, on the back of Diwali sale Amazon expects a huge boost to international segment reaffirming India’s importance in its business.

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e-commerce

Amazon unveils first Trustworthy Shopping Experience Report

32,000 bad actors targeted, 15 million fake products removed in 2025.

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MUMBAI: In a marketplace where trust is the real currency, Amazon is showing its receipts. Amazon has released its first-ever Trustworthy Shopping Experience Report, offering a detailed look at how it polices its vast digital shelves from counterfeit crackdowns to scam detection and review authenticity. At the heart of the report is a four-pronged strategy, proactive controls, risk anticipation, enforcement against bad actors, and consumer protection. The scale is staggering. Since 2020, Amazon’s Counterfeit Crimes Unit has pursued over 32,000 bad actors globally through litigation and criminal referrals spanning 14 countries.

The clean-up drive accelerated in 2025, with the company identifying and disposing of more than 15 million counterfeit products worldwide. Legal action also led to the takedown of over 100 websites linked to fake reviews and scams, an ongoing battle in the age of algorithmic manipulation.

Behind the scenes, artificial intelligence and machine learning are doing the heavy lifting. Amazon says it monitors billions of daily interactions across listings, reviews, and seller activity to spot trouble before it surfaces. Its predictive systems can even flag potentially infringing listings for trending products before brands raise the alarm.

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Tools like Omniscan, which verifies product safety information at scale, and SENTRIX, designed to detect and eliminate phishing websites, are part of this expanding tech arsenal. Together, they aim to reduce risk while keeping the platform usable for legitimate sellers.

That balance between protection and friction is a tightrope Amazon acknowledges. Rohan Oommen, Vice President of Worldwide Customer and Partner Trust, noted that while safeguards are critical, they must not stifle genuine businesses. Features like the Account Health Dashboard are meant to give sellers clearer visibility into compliance and performance.

Consumer-facing measures are also getting sharper. From direct safety alerts to recall notifications and refund guidance, Amazon is leaning into transparency, backed by partnerships with consumer organisations to raise awareness.

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The report’s release follows the expansion of Amazon’s Counterfeit Crimes Unit into India, signalling a deeper push into one of its fastest-growing markets, with closer coordination planned between brands, sellers, and law enforcement.

In short, as online shopping grows more complex, Amazon is betting that trust built through data, enforcement, and a fair bit of algorithmic vigilance will be its most valuable product yet.

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