Revenue Generation Model Of Amazon

Amazon s aws segment generated net sales of 11 6 billion and operating income of 3 5 billion in q3 2020 up from net sales of 9 0 billion and operating income of 2 3 billion in q3 2019.

Revenue generation model of amazon. Amazon has a diversified business model. In 2019 amazon posted over 280 billion in revenues and over 11 5 billion in net profits. Other amazon revenue models includes the commission and transaction fees it makes from its products as well as the recent sale of e books and digital content it has been utilizing in its sales. Amazon music and videos also add to the revenue.

It has been repeatedly venturing into newer areas. Amazon gaming amazon s subsidiary amazon game studios is one of the renowned names in the game development industry. Prime remains amazon s primary revenue stream as it is accessible to more customers and in turn generate the most revenue for them. Online stores contributed to over 50 of amazon revenues followed by physical stores amazon aws subscription services third party seller services and advertising revenues.

This visualization provides an overview of the different parts that make up amazon showing each business unit s net sales from june 2019 to 2020. The revenue model of amazon is therefore dynamic. A diverse revenue model. With a market cap of 1 7 trillion amazon is currently the most valuable retailer in the world.

Business case study revenue model and culture of customer metrics. This makes it scalable. In july 2020 amazon reported a 43 4 increase in north american sales and 33 5 worldwide revenue growth in the second quarter of 2020 online sales of groceries have tripled as consumers went online in large numbers to buy food during the coronavirus pandemic and amazon. Amazon music and videos amazon business model includes star websites like imdb and twitch tv which makes loads of money for amazon.