- Amazon Share Price Chart — About The Company
- The Subsidiaries of Amazon
- The Primary Shareholders
- More About Amazon’s Business Model
- Sources Of Revenue For The Company
- E-commerce
- Cloud Services
- Digital Advertising
- Earn Money: Become a Reseller
- Financial Results And Balance Sheet
- Amazon’s Impact on the Job Market
- Financial Outlook
- Company Forecast
How Did Amazon Do This To The Economy: Details and More
Amazon.com is the largest marketplace in the world. The company also provides cloud services, artificial intelligence development, streaming services, media content creation, electronic device production, and more. All of these diverse businesses boost Amazon’s revenue stream, making it one of the largest companies in the world.
Amazon Share Price Chart — About The Company
The company was founded in 1994 and began as an online bookstore when less than 0.5 percent of the world’s population had access to the Internet. Today the company has grown to become the world’s largest marketplace, dubbed “the store of all things.
The Amazon Marketplace is a two-way online e-commerce platform where third-party sellers and Amazon directly sell items from various categories. It includes electronics, clothing, home decor, business, garden, kids, and so on — more than 12 million items in just about every category. Amazon live stock price has a positive growth trend, more pronounced than MSFT price after hours.
The Subsidiaries of Amazon
Also, Amazon owns many subsidiaries in specific segments. These include Audible, the world’s largest audiobook retailer, and Whole Foods, the supermarket chain mainly.
In addition, there is Souq, a leading e-commerce company in the Middle East. Lastly, I must name Twitch, a streaming platform; IMDb, a web service; and so on.
The Primary Shareholders
The key shareholders of the company are its founder Jeff Bezos, as well as large institutional investors.
To name some, I’ll mention investment and pension funds, banks, family trusts, and so on. Jeff Bezos led the company for 20 years. After that, Andy Yassi took the baton from him.
Andy was previously managing Amazon Web Services. For the latest news about the company, visit letizo.com.
More About Amazon’s Business Model
At FinanceTeam, we celebrate, analyze, and discuss unique revenue models. We also discuss the chief takeaways so that smaller brands can choose the same path and earn big. So, I must say a word or two about Amazon’s revenue model.
Firstly, Amazon has an ecommerce platform. That’s their primary business. It is an artisanal aggregator platform for buyers and sellers. The next in importance is Amazon Prime. It is a subscription-based platform. Once you get that subscription, Amazon will treat you as a premium customer.
You will get access to free shipping. Most importantly, you can use the content library of Prime anytime. Then there is Amazon marketplace, Logistics, and a horde of Amazon devices.
Sources Of Revenue For The Company
Amazon is not only an online marketplace for goods but also a huge ecosystem of various services.
Thanks to the entrepreneurial talent of founder Jeff Bezos, Amazon now leads the most trending and fastest-growing industries — e-commerce, cloud services, and online advertising.
E-commerce
In the e-commerce retail market, Amazon is the leader by a wide margin. In particular, the company accounts for about 41% of all online B2C sales in the U.S.; that is, 40 cents of every dollar spent online in the U.S. is spent on Amazon.Walmart and eBay came in second and third with 6.6% and 4.2%, respectively. Also, Amazon is actively increasing its presence in international markets, where sales bring the company about 32% of revenue.
Cloud Services
The cloud server business unit of the company, Amazon Web Services, or AWS, is also an absolute leader in the U.S. and worldwide. According to global analyst firm Canalys, global cloud spending has increased.
Our last tracked data shows that 4 years ago, it was about $90 billion, with Google Cloud accounting for 7 percent, Microsoft Azure for 19 percent, and AWS for 32 percent.
Digital Advertising
Amazon’s promising business units include advertising, which will grow at a rate roughly commensurate with e-commerce due to synergies across services. Specifically, ResearchAndMarkets expects the global digital advertising market to grow from $374.2 billion in 2020 to $763.6 billion in 2025 at an average annual growth rate of 15.3%, and to reach $1.45 trillion by 2030 at an average annual growth rate of 13.7%.
Read Also: Does Amazon Pay Weekly? – Amazon’s Payment Schedule
Earn Money: Become a Reseller
Do you know how to sell on Amazon? It’s online, and it’s easy. Start with creating your account. Visit Amazon Seller Central to create your account.
Here are the details you must provide:
Your valid phone number
The government ID against which your business is registered
Your Tax data
The Bank A/C details
A chargeable credit card is a must
You also need a business email address to start selling
Done with these? Now, the next step is to choose a proper fulfillment method. I would suggest you list the products using the Webmaster tool. It is available on Amazon’s platform. Finally choose a selling plan of your preference. That’s it. You can now start selling. But I would recommend checking Amazon Seller Central frequently. It will help you to track how much you earn from the platform.
Financial Results And Balance Sheet
Amazon’s average revenue growth rate over the past few years has been at 30% y/y. The most profitable segment, AWS, is growing the fastest, which has a positive impact on the company’s overall profitability.
The company has a very strong financial position due to its market dominance, technology availability, and low debt load. The main sources of liquidity are cash flows from operations.
Amazon’s Impact on the Job Market
The economy largely rests on the economic activities and market expansion of the primary MNCs operating in the circuit. Speaking of that, Amazon created a spurring effect in the US economy, leveraging jobs.
I will share an estimate to help you understand the significance of Amazon. In any mid-sized US county, Amazon created at least 4400 new jobs. Do you know how that affects the local economy?
It improves the median income of the county by 2.2%. It is also equivalent to $1350 per household. However, Financeteam always sees both ends of the coin.
There’s no doubt that Amazon jobs boosted the economy. However, I may blame the brand for employees’ low salaries globally. Due to low wages, Amazon jobs could not contribute to the overall employment scheme.
Instead, Amazon is supporting the gig economy. Their delivery network and associated roles are promoting this. As a result, the urge to get stable jobs would be lower in due course.
Financial Outlook
Given the company’s leading position in almost all of its sectors of activity, we can expect significant growth in financial performance by 2025 with a moderate increase in market share in all segments. By 2025, the company’s revenues in North America could increase to $680-825 billion, and in the international segment to $260-350 billion. Amazon Web Services could bring the company up to $165 billion.
Company Forecast
The company leads the fastest-growing industries and has a lot of undeniable competitive advantages. That’s why the 5-year Amazon share price chart has a positive outlook.
These include the availability of enough liquidity, in-house logistics, technological innovations, dominant market position, etc. The company develops and enters new markets and business segments through organic growth and M&A transactions.
As a leader in online commerce, Amazon is shifting its development focus towards high-margin digital services and services, which leads to an overall increase in profitability.
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