Amazon makes a lot of money. But how? Do they make their money on books, or on merchant sales, or on TV shows? Where does the money come from, and what does the breakdown look like? While the answer to this might not help you manage your Amazon listings, it does give you insight into the beast that drives your sales. We dig into Amazon and answer all of these questions for you.
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The following content is text taken from the above infographic and provided to you in an easy copy and paste format. Please feel free to use it in any writing that references this article.Amazon’s Worth
Amazon employees are pushed to their limits for the company’s success: “You can work long, hard, or smart, but at Amazon.com you can’t choose two out of three” – Jeff Bezos
Sources:- Amazon Market Value
- $427 billion
- Traditional Retailer Market Values
- Sears: $1.2 billion
- JC Penney: $1.8 billion
- Kohl’s: $6.8 billion
- Nordstrom: $7.4 billion
- Macy’s: $8.9 billion
- Best Buy: $14.9 billion
- Target: $29.4 billion
- Wal-Mart: $221.1 billion
- Combined: $291.5 billion
- In 2016, Amazon accounted for 43% of all online retail sales in the U.S.
- Amazon accounts for 34% of U.S. e-commerce
- E-commerce domination will grow
- 2016: 34%
- 2017: 37%
- 2018: 41%
- 2019: 45%
- 2020: 47%
- 2021: 50%
- Constantly innovating and adapting
- Started in 1994 as an online bookseller
- Since expanded to become cloud computing giant, tablet and smart home device manufacturer, ebook publisher, movie studio, and more
- Focused on customers
- Ranked #1 on 2017 American Customer Satisfaction Index
- Ranked #1 on 2017 Corporate Reputation Harris Poll
- Focused on growth instead of profits
- CEO Jeff Bezos looks to the future, not the present
- Operating income 2016: $4.2 billion
- That’s only 4% of total sales!
- Follow the Money
- Sales
- 2016: $136 billion
- 2015: $107 billion
- 2014: $89 billion
- Operating Expenses
- 2016: $131.8 billion
- 2015: $104.8 billion
- 2014: $88.8 billion
- Operating income
- 2016: $4.2 billion
- 2015: $2.2 billion
- 2014: $178 million
- Net Sales by Revenue Stream
- Retail products (67%)
- 2016: $91.4 billion
- 2015: $76.9 billion
- Retail third-party sellers (17%)
- 2016: $23 billion
- 2015: $16.1 billion
- Amazon Web Services (AWS) (9%)
- 2016: $12.2 billion
- 2015: $7.9 billion
- Amazon Prime and other retail subscriptions (5%)
- 2016: $6.4 billion
- 2015: $4.5 billion
- Other (includes ad services and co-branded credit card agreements) (2%)
- 2016: $3 billion
- 2015: $1.7 billion
- In 2016, unredeemed Amazon gift cards alone made $2.4 billion.
Amazon employees are pushed to their limits for the company’s success: “You can work long, hard, or smart, but at Amazon.com you can’t choose two out of three” – Jeff Bezos
- How Can You Get a Cut?
- 40% of product sales on Amazon Marketplace come from third-party sellers
- In 2016, Amazon made $23 billion in sales from third-party sellers
- How much do sellers make?
- Annual sales
- 49%: Less than $100,000
- 36%: $100,000-$1 million
- 13%: $1 million-$10 million
- 2%: More than $10 million
- Of that, less than 0.6% sell more than $50 million
- Primary products sold by third-party sellers
- 18% Home and Kitchen
- 11% Toys and Games
- 9% Books
- 8% Health
- 8% Beauty
- 7% Electronics
- 7% Clothing
- 6% Sports and Outdoors
- Amazon revered and feared
- Sellers concerned about punishment/competition from Amazon
- Top concerns
- 61% Amazon taking away my seller privileges
- 44% Amazon selling my items
- 43% Negative customer feedback
- What do sellers owe Amazon?
- Professional sellers (sell more than 40 items per month): $39.99/month + 10-15% of transaction
- Individual sellers (sell fewer than 40 items per month): $0.99/sale
- 79% of sellers use Fulfillment by Amazon (FBA) services
- Amazon stores, packages, and ships your products for you
- Top concerns
https://www.forbes.com/companies/amazon/
http://www.businessinsider.com/amazon-accounts-for-43-of-us-online-retail-sales-2017-2
http://fortune.com/2017/04/10/amazon-retail/
http://www.businessinsider.com/amazon-video-budget-in-2017-45-billion-2017-4
http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=RssLanding&cat=news&id=2254435
https://www.forbes.com/sites/chuckcohn/2015/05/15/a-beginners-guide-to-upselling-and-cross-selling/#4ae680832912
https://www.amazon.com/gp/launchpad/signup
https://www.sec.gov/Archives/edgar/data/1018724/000101872417000011/amzn-20161231x10k.htm#sC29BC4DEA0B5596BB68A2E759FDA7CC8
https://www.nytimes.com/2015/08/16/technology/inside-amazon-wrestling-big-ideas-in-a-bruising-workplace.html
https://services.amazon.com/selling/benefits.html
http://www.businessinsider.com/amazon-accounts-for-43-of-us-online-retail-sales-2017-2
http://fortune.com/2017/04/10/amazon-retail/
http://www.businessinsider.com/amazon-video-budget-in-2017-45-billion-2017-4
http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=RssLanding&cat=news&id=2254435
https://www.forbes.com/sites/chuckcohn/2015/05/15/a-beginners-guide-to-upselling-and-cross-selling/#4ae680832912
https://www.amazon.com/gp/launchpad/signup
https://www.sec.gov/Archives/edgar/data/1018724/000101872417000011/amzn-20161231x10k.htm#sC29BC4DEA0B5596BB68A2E759FDA7CC8
https://www.nytimes.com/2015/08/16/technology/inside-amazon-wrestling-big-ideas-in-a-bruising-workplace.html
https://services.amazon.com/selling/benefits.html
