Amazon started its edtech business during the COVID-19 pandemic, offering math and science courses aimed at students preparing for an engineering entrance exam. It is among her most recent works and still small in size.
“At Amazon, we think big, experiment, and invest in new ideas to delight customers. We also constantly evaluate the progress and potential for our products and services to deliver value to customers, and regularly make adjustments based on those evaluations. After an evaluation, we made the decision to discontinue Amazon Academy,” she said. company in a statement.
Amazon said it would refund full fees to those enrolled in the current academic cohort. The Seattle-based company entered the education technology space at a time when Byju’s and Unacademy, among others, were expanding aggressively, aided by the tailwinds of the virus outbreak.
Amazon’s decision to close the academy comes at a time when the online retailer is facing challenges on a global level as the economic slowdown and the recession of the pandemic have affected the e-commerce business.
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ET reported on November 16 that the company is laying off more than 10,000 employees globally, and hundreds have been affected in India.
In September, research firm Bernstein published a report critical of Amazon India, saying the company’s performance in the country was “mixed,” with losses continuing despite an injection of $6.5 billion.
While Amazon India’s market, Amazon Seller Services, was able to trim losses by around 23% to Rs. 3,649 crore in FY22, losses widened in the other two businesses – payments and logistics.
Bernstein’s report also said Amazon has struggled to grow its business significantly in high-margin categories like fashion, beauty and personal care, which are dominated by competitors Flipkart and Nika respectively.
The report said that the decrease in the level of management has also increased, indicating that there are difficulties in achieving the required scale. In the recently concluded holiday season sales, Flipkart Group commanded 60% of the market share, according to a report by research firm RedSeer.