Amazon’s global business, $ 398 million loss on COVID-19 in India.

India’s Lockdown due to COVID-19 has been biggest impact to the Company’s International business segment.

In the first quarter, it incurred over $ 600 million in COVID-19 related costs and in the coming lockdown it may be grow to $ 4 billion or more. Amazon operating losses, increases to $ 398 million in Quarter 1 2020 compared to $ 90 million in Quarter 2 of 2019. Company also includes the costs in procuring personal protective equipment for employees, also enhanced cleaning facilities and maintained social distancing between the employees.

Amazon Brian CFO Olsavsky said “We are now only fulfilling the essential goods like grocery. So, it cuts lots of our offers and we will further expand when the Indian Government allowed us for the remains products. And Company only carries out the grocery operation due to the Government restriction”.

Amit Agrawal, Amazon’s India head posted on Twitter, “E-commerce offers the safest way to ensure social distancing, saving lives and livelihood. We urge the government to allow us to deliver all products, because we are E-commerce Company and it is safe for other and also easy for them to order and citizens need over a prolonged period, so that they can Stay Home & Stay Safe.

Amazon India, it recently launched a new program that is ‘Local Shops on Amazon’ as a aimed to bring local shopkeepers to this e-commerce business and retailers of all sizes to choose this products and can also choose to expand their Serviceable areas using Amazon Services.

Gopal Pillai, VP, Seller Services-Amazon India said the statement to supported their program “We focused all our efforts to only serve products that are essential to our customers during this time. It was heartening to see hundreds of retailers from the Local Shops program play an important role to help people across India practice social distancing while addressing their needs for essential products”.