e-commerce
Amazon heavily dependent on Diwali sale for revenue
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.
“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.
“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.
e-commerce
Flipkart rolls out 105 per cent bonus for 20,000 employees
Strong FY25 performance drives payouts even as layoffs and shifts unfold.
MUMBAI: In a year where belts were tightened and rewards loosened, Flipkart seems to be playing both offence and defence trimming roles on one hand while handing out a generous 105 per cent bonus on the other. The Walmart owned e commerce major has rolled out a 105 per cent bonus payout for 2025, covering nearly 20,000 employees, signalling a year of steady operational momentum even as the company navigates restructuring pressures. The payout, communicated internally by chief human resources officer Seema Nair, is tied to performance across key metrics including growth, operational efficiency, financial outcomes and people indicators, a combination that suggests the company is inching closer to its long stated goal of sustainable profitability.
Employees at SD level and below are set to receive their bonuses in March, while payouts for senior leadership, including vice presidents and senior vice presidents, will follow after the close of the performance cycle. The elevated 105 per cent multiplier stands out in a sector where cautious payouts have increasingly become the norm, pointing to what appears to be a relatively strong internal scorecard for FY25.
Yet, the announcement arrives with a noticeable contrast. Earlier this year, Flipkart reduced its workforce by around 300 roles as part of its annual performance review process. While officially framed as performance driven, the juxtaposition of layoffs alongside above target bonuses reflects a more nuanced balancing act, one that prioritises cost discipline while continuing to reward and retain high performing talent.
This dual approach is becoming increasingly common across the technology and e commerce landscape, where companies are navigating an uneven hiring environment while under pressure to deliver profitability. Rewarding top contributors, even amid selective workforce reductions, allows firms to maintain morale and retain critical talent without losing sight of financial prudence.
At the same time, Flipkart is also undergoing leadership shifts that hint at a broader strategic recalibration. Nishant Verman has been appointed senior vice president for corporate development and partnerships, while group chief financial officer Sriram Venkataraman is set to step down. Ravi Iyer will take on expanded responsibilities within the finance function, marking a reshuffle at the top as the company gears up for its next phase.
These changes come amid reports that Flipkart is planning to shift its holding structure back to India, a move widely interpreted as groundwork for a potential public listing. While timelines remain fluid, the combination of stronger financial discipline, leadership restructuring and employee incentivisation suggests a company preparing itself for greater scrutiny and scale.
For employees, the 105 per cent payout offers a welcome boost in what has otherwise been a period of adjustment. For Flipkart, it is a signal that even as it cuts where necessary, it is willing to spend where it counts. In the high stakes game of growth versus profitability, the company appears to be hedging its bets carefully, rewarding performance while reshaping itself for what could be its most defining chapter yet.
