Amazon makes money through its retail, subscriptions, and web services, among other channels. Retail remains Amazon’s primary source of revenue, with online and physical stores together accounting for the biggest share. Amazon Web Services (AWS) currently generates all of Amazon’s operating profits and is growing at a robust pace., and more items.
While a majority of Amazon’s revenue comes from online sales, the company has several other business segments that generate billions of dollars in revenue The largest business segment following online sales is third-party selling services How Amazon Makes Its Money.
Thankfully for Jeff Bezos and co, Amazon has another operating segment that rakes in money — AWS. AWS stands for Amazon Web Services, and it’s a catchall for the various cloud services Amazon provides that allow businesses to store information and deliver content.
The next thing we wondered was, how to make money selling on Amazon?
Your products are hosted on the Amazon platform where millions of people shop every day. You need to sell a physical product in enough volume to turn a profit. This can be a barrier to entry for some sellers. To begin, register to start selling on Amazon here. Then you can sign up for Amazon FBA here.
What’s changed with Amazon’s profit?
Despite Amazon’s dominance in e-commerce, online sales are not actually a main profit engine for the company. Instead, its cloud computing division, Amazon Web Services, has actually generated the majority of Amazon’s operating income since 2016. Profits from advertising and third-party sellers are also booming.
How did Amazon’s profits grow in Q3?
Revenue, which Amazon calls net sales, rose 27.2% to $113.1 billion for the quarter. Profits were fueled by robust revenue growth, but received an additional boost from a significant increase in other income. Operating income grew 31.8% to $7.7 billion. 3 Amazon divides its business into three segments: North America, International, and AWS.
How did Amazon make $26 billion in revenue in 2018?
In 2018, AWS booked almost $26 billion in revenue, but because cloud services is a high-margin business that scales well, it generated over $7 billion in operating income. Put another way, Amazon made the same amount of money on $26 billion in AWS revenue as it did on $140 billion from its North American retail operations.
While we were writing we ran into the query “How much did Amazon make in 2019?”.
Amazon revenue for the twelve months ending September 30, 2019 was $265.468B, a 20.14% increase year-over-year. Amazon annual revenue for 2018 was $232.887B, a 30.93% increase from 2017. Amazon annual revenue for 2017 was $177.866B, a 30.8% increase from 2016. Amazon annual revenue for 2016 was $135.987B, a 27.08% increase from 2015.