Business

How Does Amazon.com Inc. Makes Money?

Update: November 13, 2018, Amazon announced that New York City and Arlington, Virginia, will be the locations of its second headquarters. The online giant began with a list of 238 possible locations a year ago, saying it would add up to 50,000 workers at its next headquarters — and surprised with the decision of splitting HQ2 into two locations. Amazon also said that it will open a new operations center in Nashville, adding more than 5,000 jobs there.


By: Jeff Desjardins, Visual Capitalist│Updated on Feb. 11, 2018│(Lead photo: courtesy of Getty Images/Ringer illustration)

There has never been a company quite like Amazon. Amazon, officially founded in 1994, launched their website Amazon.com a year after. The company that once started as an online bookstore has reinvented itself time and again. After an immediate success, it expanded to include music and video store. It now sells almost everything including books, music, movies, and housewares. It is changing the way we read, shop, and compute.

In 2017 alone, Amazon.com Inc. (NASDAQ: AMZN) stock gained 58% (CBS/AP, 2017). At the rate it is growing and expanding, Amazon could be a trillion-dollar company in just a few years from now.

Note: Amazon Founder and CEO Jeff Bezos bought The Washington Post for $250 million in 2013 (Irwin & Mui, 2013).

Amazon makes a lot of money, but what are the exact sources of revenue? How does it all break down?

Today’s infographic comes to us from Sellbrite, and it dives into the company’s success, and how Amazon makes money (Desjardins, 2017):

Courtesy of: Visual Capitalist
Read the original article on Visual Capitalist. Get rich, visual content on business and investing for free at the Visual Capitalist website, or follow Visual Capitalist on Twitter, Facebook, or LinkedIn for the latest. Copyright © 2017. Follow Visual Capitalist on Twitter.

References:

Amazon.com, Inc. (n.d.). Amazon Launchpad. Amazon.com, Inc. Retrieved from https://www.amazon.com/gp/launchpad/signup

Amazon.com, Inc. (n.d.). Why Sell on Amazon? Amazon.com, Inc. Retrieved February 11, 2018, from https://services.amazon.com/selling/benefits.html

Amazon.com, Inc. (2017, March 16). Amazon Thanks Customers for #1 Ranking in American Customer Satisfaction Index. Amazon.com, Inc. Press Release. Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=RssLanding&cat=news&id=2254435

BI Intelligence. (2017, February 03). Amazon accounts for 43% of US online retail sales. Business Insider. Retrieved from http://www.businessinsider.com/amazon-accounts-for-43-of-us-online-retail-sales-2017-2

CBS/AP. (2017, December 27). 2017 stock winners and losers: Amazon, Boeing soared; GE plunged. CBS News. Retrieved from https://www.cbsnews.com/news/2017-stock-winners-and-losers-amazon-boeing-soared-ge-plunged/

Cohn, C. (2015, May 15). A Beginner’s Guide To Upselling And Cross-Selling. Forbes. Retrieved from https://www.forbes.com/sites/chuckcohn/2015/05/15/a-beginners-guide-to-upselling-and-cross-selling/#4ae680832912

Desjardins, J. (n.d.). Visual Capitalist. Retrieved from http://www.visualcapitalist.com

Desjardins, J. (2017, December 19). Breaking Down How Amazon Makes Money. Visual Capitalist. Retrieved from http://www.visualcapitalist.com/breaking-amazon-makes-money/

Forbes. (n.d.). Amazon.com on the Forbes Canada’s Best Employers List. Forbes. Retrieved from https://www.forbes.com/companies/amazon/

Irwin, N., & Mui, Y. Q. (2013, August 05). Washington Post sale: Details of Bezos deal. The Washington Post. Retrieved from https://www.washingtonpost.com/business/economy/details-of-bezos-deal-to-buy-washington-post/2013/08/05/968a2bc4-fe1b-11e2-9711-3708310f6f4d_story.html?utm_term=.1a8ffe56e755

Kantor, J., & Streitfeld, D. (2015, August 15). Inside Amazon: Wrestling Big Ideas in a Bruising Workplace. The New York Times. Retrieved from https://www.nytimes.com/2015/08/16/technology/inside-amazon-wrestling-big-ideas-in-a-bruising-workplace.html

McAlone, N. (2017, April 07). Amazon will spend about $4.5 BILLION on its fight against Netflix this year, according to JPMorgan. Business Insider. Retrieved from http://www.businessinsider.com/amazon-video-budget-in-2017-45-billion-2017-4

Securities and Exchange Commission. (2016, December 31). U.S. Securities and Exchange Commission. The U.S. Securities and Exchange Commission. Retrieved from https://www.sec.gov/Archives/edgar/data/1018724/000101872417000011/amzn-20161231x10k.htm#sC29BC4DEA0B5596BB68A2E759FDA7CC8

Sellbrite. (2017, December 14). How Does Amazon Make Money? [INFOGRAPHIC]. Sellbrite. Retrieved from https://www.sellbrite.com/blog/how-does-amazon-make-money/

Wahba, P. (2017, April 10). Amazon Will Make Up 50% of All U.S. E-Commerce by 2021. Fortune. Retrieved February, from http://fortune.com/2017/04/10/amazon-retail/