How Amazon makes money

sumaiyakhatun29 · Post by **sumaiyakhatun29** » Thu Dec 26, 2024 9:26 am

To understand how Amazon makes money, we need to look at each of the different operations under this big corporate umbrella. These operations have helped the company achieve year-on-year profitability, which has fueled its growth. They are: Amazon Marketplace: The company’s first revenue stream, Amazon.com, accounts for more than 42% ($220 billion of $513.98 billion revenue in 2022 from its online stores) of the income. Third-party sellers accounted for an additional $117.

71 billion of revenue. Amazon asks for a fee from its sellers switzerland whatsapp fan to promote and advertise their products; Amazon Prime: Amazon’s subscription business model is vital to the brand’s growth. In exchange for a monthly fee, subscribers can access the platform’s video and music streaming catalog, free two-day shipping, unlimited photo storage, etc. Prime currently has more than 150 million members; Amazon Web Services: Amazon Web Services is a low-cost, complete IT structure platform whose services are contracted by companies, organizations, and institutions worldwide.

It’s not the primary source of revenue, but it is undoubtedly the most profitable one; Amazon Kindle: Amazon’s e-reading service allows users to buy, browse, and download books, magazines, and newspapers available at the Kindle Store. Amazon doesn’t make much money from Kindle, but it attracts traffic to the Prime membership plan. Besides, the platform allows independent authors to publish their info-products and e-books, charging something between 30 to 70% of royalty fees from the sales; Amazon Patents: The company has more than 17,600 patents, several licensed by other companies.