Amazon turns $201B of sales into $27.5B of operating profit, and AWS earns most of it. Source: Amazon Q2 2026 earnings release (Form 8-K, SEC). Segment net sales and operating income as reported; costs calculated. Analysis by The Business Engineer.
How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
Company explainer · Amazon, explained
A 3-minute explainer of Amazon's business model and latest numbers, built from its SEC filings. Analysis by The Business Engineer.
Failed Project/Product ยท Description and Purpose ยท Key Reasons for Failure ยท Lessons Learned (if any)
Amazon Fire Phone
Description and Purpose. A smartphone designed to compete with Apple and Android.
Key Reasons for Failure. High price, lack of compelling features, and limited app ecosystem.
Lessons Learned (if any). The importance of offering a competitive edge and strong app ecosystem in the smartphone market.
Amazon Destinations
Description and Purpose. A travel booking site for weekend getaways.
Key Reasons for Failure. Shutdown due to competition and limited user interest.
Lessons Learned (if any). Understanding the competitive landscape and the need for a strong value proposition in travel services.
Amazon WebPay
Description and Purpose. A digital payment service similar to PayPal.
Key Reasons for Failure. Discontinued due to fierce competition and low adoption.
Lessons Learned (if any). The need to differentiate in crowded markets and achieve critical mass in digital payment services.
Amazon Wallet
Description and Purpose. A mobile app for storing loyalty and gift cards.
Key Reasons for Failure. Ceased due to limited adoption and changing market dynamics.
Lessons Learned (if any). The importance of continually assessing market trends and user preferences in mobile wallet services.
Amazon Local
Description and Purpose. A daily deals and local offers platform.
Key Reasons for Failure. Discontinued due to fierce competition and low user engagement.
Lessons Learned (if any). The challenges of competing in the crowded daily deals market and retaining user interest.
Amazon Auctions
Description and Purpose. An online auction marketplace.
Key Reasons for Failure. Shut down due to competition from eBay and low activity.
Lessons Learned (if any). Recognizing when to exit markets with dominant incumbents and stronger network effects.
Amazon Register
Description and Purpose. A mobile point-of-sale system.
Key Reasons for Failure. Discontinued due to intense competition from established players.
Lessons Learned (if any). Assessing market conditions and the feasibility of entering highly competitive industries.
Amazon Local Register
Description and Purpose. A mobile credit card processing service.
Key Reasons for Failure. Ended due to strong competition from other payment providers.
Lessons Learned (if any). The need for differentiation and offering unique value in payment processing services.
Amazon Spark
Description and Purpose. A social shopping platform for sharing product recommendations.
Key Reasons for Failure. Discontinued due to limited user engagement.
Lessons Learned (if any). The importance of fostering active user communities and addressing user needs effectively.
Amazon Dash
Description and Purpose. A physical button for ordering specific products.
Key Reasons for Failure. Phased out in favor of virtual Dash Replenishment Service.
Lessons Learned (if any). Adapting to changing technology trends and evolving from hardware to software-based solutions.
Amazon Pantry
Description and Purpose. A subscription-based service for household essentials.
Key Reasons for Failure. Discontinued due to changing consumer shopping habits.
Lessons Learned (if any). Recognizing shifts in consumer behavior and adapting business models accordingly.
Amazon Spark
Description and Purpose. A social shopping platform for sharing product recommendations.
Key Reasons for Failure. Discontinued due to limited user engagement.
Lessons Learned (if any). The importance of fostering active user communities and addressing user needs effectively.
Amazon Wine
Description and Purpose. An online wine marketplace.
Key Reasons for Failure. Closed due to complex regulations and logistical challenges.
Lessons Learned (if any). Navigating regulatory complexities and understanding the suitability of the business model within the industry.
Amazon TextBuyIt
Description and Purpose. A text-based shopping service.
Key Reasons for Failure. Discontinued due to limited user adoption and mobile app advancements.
Lessons Learned (if any). The need to keep pace with evolving mobile technologies and user expectations.
Amazon Home Services
Description and Purpose. A marketplace for hiring local professionals and services.
Key Reasons for Failure. Restructured due to competition and repositioned as part of Amazon Local.
Lessons Learned (if any). Adapting to competitive landscapes and finding suitable niches within the broader market.
Amazon Flow
Description and Purpose. A visual product search and barcode scanning app.
Key Reasons for Failure. Discontinued due to limited user adoption and lack of clear value.
Lessons Learned (if any). The importance of providing clear value propositions and addressing user needs effectively.
Amazon Wallet
Description and Purpose. A mobile app for storing loyalty and gift cards.
Key Reasons for Failure. Ceased due to limited adoption and changing market dynamics.
Lessons Learned (if any). The importance of continually assessing market trends and user preferences in mobile wallet services.
Amazon Destinations
Description and Purpose. A travel booking site for weekend getaways.
Key Reasons for Failure. Shutdown due to competition and limited user interest.
Lessons Learned (if any). Understanding the competitive landscape and the need for a strong value proposition in travel services.
Amazon Daily Dish
Description and Purpose. A daily deals and discounts platform.
Key Reasons for Failure. Discontinued due to competition and low user engagement.
Lessons Learned (if any). The challenges of competing in the crowded daily deals market and retaining user interest.
The key components of Amazon Failures include Amazon Fire Phone, Amazon Destinations, Amazon WebPay, Amazon Wallet, Amazon Local. Amazon Fire Phone: A smartphone designed to compete with Apple and Android.
Amazon in charts
Amazon's flywheel: lower prices bring traffic, traffic brings sellers, sellers bring selection. Source: Concept framework: Amazon's flywheel as described by Jeff Bezos; FourWeekMBA / The Business Engineer. Figures: Amazon Q2 2026 earnings release (SEC). Analysis by The Business Engineer.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur, HackerNoon and Search Engine People. Find him on LinkedIn and Substack. See how we source.
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