How does Amazon Make Money?
Revenue Sources
Amazon generates revenue from retail channels, including its eCommerce marketplace and brick-and-mortar stores.
Retail Sales
Amazon's retail sales include the sale of physical goods such as books, electronics, and household items. In 2019, retail sales accounted for a significant portion of Amazon's total revenue.
Subscriptions
Amazon also earns revenue through subscription services such as Amazon Prime, which offers free shipping and other perks. Prime membership fees contribute to Amazon's overall revenue.
Web Services
Amazon Web Services (AWS) provides cloud computing services to businesses and organizations. AWS includes a range of services such as storage, computing, and analytics. AWS is a growing revenue stream for Amazon.
Other Sources
In addition to these primary sources, Amazon also generates revenue from advertising, licensing, and other initiatives.
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