Here are some impressive facts about Amazon and how they make so much money:





Net Revenue: In 2020, Amazon reported a net revenue of $386 billion, an impressive increase of 38% compared to 2019. The company's diverse revenue streams, including e-commerce, Amazon Web Services, and advertising, have contributed to this exceptional growth.

Amazon Web Services (AWS): In 2020, AWS generated $45.4 billion in net sales, accounting for 12% of Amazon's total revenue. AWS is the world's leading cloud computing provider, powering millions of businesses worldwide with its scalable and reliable infrastructure services.

Third-Party Seller Services: Third-party sellers accounted for 54% of paid units sold on Amazon in 2020. The company made $80 billion from these services in 2020, earning money through commissions, subscription fees, and fulfillment services like FBA (Fulfillment by Amazon).

Prime Membership: As of 2021, Amazon Prime had over 200 million subscribers globally. With an annual fee of $119 (or $12.99/month), Prime membership generates significant recurring revenue while encouraging customer loyalty and increasing overall spending on the platform.

Advertising Business: Amazon's advertising business brought in more than $21 billion in 2020. As the third-largest digital advertiser in the United States, Amazon capitalizes on its vast customer data and targeted advertising capabilities to generate revenue from sponsored products, display ads, and video ads.

Physical Stores: As of 2021, Amazon operated over 600 physical retail locations, including Amazon Go, Amazon Books, Whole Foods Market, and Amazon 4-star. These stores not only drive sales but also offer valuable customer insights and serve as testing grounds for new retail technologies.

Expansion and Diversification: Amazon's constant expansion into new markets and industries, such as healthcare (Amazon Pharmacy), entertainment (Amazon Studios), and logistics (Amazon Air), has allowed the company to increase its revenue sources and maintain a competitive edge. By staying at the forefront of innovation, Amazon continues to dominate the market and grow its financial prowess.