How Amazon Makes Its Money

by visualcapitalist

How Amazon Makes Its Money Chart

With a market cap of $1.7 trillion, Amazon is the most valuable retailer in the world. But the company has grown into more than just an online store.

Amazon is now the proud owner of multiple billion-dollar revenue streams—but what are these different business segments, and how much does each unit contribute to the company’s overall revenue mix?

Here’s a look at Amazon’s different business segments, and how much each contributed to the company’s total revenue in 2019 (which was a casual $281 billion):

Business Segment Percent of Revenue (2019)
Online stores 50.4%
Third-party seller services 19.2%
Amazon Web Services (AWS) 12.5%
Subscription services 6.9%
Physical stores 6.1%
Other 5.0%

While online stores generated the highest amount of revenue at 50.4%, third-party seller services made up a significant portion as well, making up 19.2% of the total.

Third-party selling has seen significant growth over the years—in 2018, it accounted for 58% of Amazon’s gross merchandise sales, which is a vast increase compared to 2000, when it made up merely 3%.

Amazon Web Services (AWS) is the third most important revenue stream, contributing 12.5% to the overall mix. However, despite contributing a relatively small percentage to total revenue in 2019, AWS made up a large portion of Amazon’s operating income, making it the key to the company’s overall profitability.

>> To learn more, read our full article on How Big Tech Makes Their Billions.