amazon-revenue-per-employee

Amazon Revenue Per Employee

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Amazon had 1,525,000 full-time and part-time employees in 2023, generating $376,908 per employee, compared to $333,539 in 2022.

Amazon Employees1,525,000 full-time and part-time employees
Revenues per Employee$376,908
Analysis by FourWeekMBA
Key Facts
FounderJeff Bezos
Year & Place FoundedJuly 5, 1994, Bellevue, WA
Year of IPO5/15/1997
IPO Price$18.00
Total Revenues at IPO$15.75 million
Total Revenues in 2023$574.8B
Analysis by FourWeekMBA

Revenue per employee in Big Tech

revenue-per-employee-in-big-tech
  • Tesla:
    • Revenue per employee declined from 2019 to 2020, but then increased significantly in 2021 and 2022.
    • Tesla experienced the highest percentage increase in revenue per employee from 2020 to 2022 (43.0%).
  • Google:
    • Revenue per employee remained relatively stable between 2019 and 2020, but then experienced a significant increase in 2021.
    • However, Google’s revenue per employee decreased in 2022 compared to 2021, but still remained higher than 2019 and 2020.
  • Amazon:
    • Revenue per employee decreased from 2019 to 2020 and continued to decrease in 2021, reaching its lowest point.
    • In 2022, Amazon’s revenue per employee rebounded, but it was still below the 2019 level.
  • Apple:
    • Apple consistently increased its revenue per employee from 2019 to 2022, with the highest figure in 2022.
    • Apple had the highest revenue per employee across all companies in each year.
  • Meta (formerly Facebook):
    • Meta experienced a decrease in revenue per employee from 2019 to 2020, followed by an increase in 2021.
    • However, revenue per employee decreased again in 2022, settling between the 2020 and 2021 figures.
  • Microsoft:
    • Microsoft’s revenue per employee increased steadily from 2019 to 2022, although the increase was relatively modest compared to other companies.

Key Trends in Revenue Per Employee in Big Tech

  • Apple consistently had the highest revenue per employee among the listed companies.
  • Tesla exhibited the most significant percentage increase in revenue per employee from 2020 to 2022.
  • Amazon was the only company that experienced a decrease in revenue per employee for two consecutive years (from 2019 to 2021).
  • Microsoft displayed the most consistent and steady growth in revenue per employee over the years, although at a more modest rate compared to other companies.
  • Google and Meta had a fluctuating trend in revenue per employee, with both companies experiencing a decrease in 2022 compared to 2021.
revenue-per-employee

Read Next: Amazon Business Model

amazon-revenue-breakdown
Amazon generated over half a trillion dollars in revenue in 2023, of which $231.87B from online stores, over $140.05B from third-party seller services, $90.76B from AWS, $46.9B from advertising, $40.21B from subscription services, $20.03B billion in physical stores, and $4.96B from other sources.

Related to Amazon Business Model

Amazon Business Model

amazon-business-model
Amazon has a diversified business model. In 2023, Amazon generated nearly $575 billion in revenues while it posted a net profit of over $30 billion. Online stores contributed over 40% of Amazon revenues. Third-party Seller Services and Physical Stores generated the remaining. Amazon AWS, Subscription Services, and Advertising revenues play a significant role within Amazon as fast-growing segments.

Amazon Mission Statement

amazon-vision-statement-mission-statement (1)
Amazon’s mission statement is to “serve consumers through online and physical stores and focus on selection, price, and convenience.” Amazon’s vision statement is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.” 

Customer Obsession

customer-obsession
In the Amazon Shareholders’ Letter for 2018, Jeff Bezos analyzed the Amazon business model, and it also focused on a few key lessons that Amazon as a company has learned over the years. These lessons are fundamental for any entrepreneur, of small or large organization to understand the pitfalls to avoid to run a successful company!

Who Owns Amazon

who-owns-amazon
With 64,588,418 shares, Jeff Bezos is the primary individual investor. Owning 12.7% of the company. Other top individual investors include Amazon’s CEO Andy Jessy, who has 94,729 shares. Top institutional investors include mutual funds like The Vanguard Group (6.6% ownership) and BlackRock (5.7% ownership). 

Amazon Revenues

amazon-revenues
Amazon generated over half a trillion dollars in revenue in 2023, of which $231.87B from online stores, over $140.05B from third-party seller services, $90.76B from AWS, $46.9B from advertising, $40.21B from subscription services, $20.03B billion in physical stores, and $4.96B from other sources.

Amazon Profitability

is-amazon-profitable
Amazon was profitable in 2023. On nearly $575 billion in revenue for 2023, Amazon generated a net profit of over $30 billion. Since 2014, Amazon hasn’t recorded a net loss, but it did record a net loss of over $2.7 billion in 2022, while it recouped that in 2023.  Indeed, in 2014, Amazon reported a net loss of $241 million, and it would be profitable until 2021. In 2022, Amazon turned unprofitable again and highly profitable again in 2023. 

Amazon AWS Business

amazon-aws-platform-business-model
Amazon AWS follows a platform business model that gains traction by tapping into network effects. Born as an infrastructure built on top of Amazon’s infrastructure, AWS has become a company offering cloud services to thousands of clients from the enterprise level, to startups. And its marketplace enables companies to connect to other service providers to build integrated solutions for their organizations.

Amazon Prime Revenue

amazon-prime-revenue
Amazon subscription revenue in 2023 was over $40 billion, compared to over $35 billion in 2022 and nearly $32 billion in 2021. Amazon Prime grew from a $4.5 billion revenue segment in 2015 to an over $40 billion segment in 2023.

Amazon Advertising Revenue

amazon-ads-revenues

Amazon Cash Conversion

cash-conversion-cycle-amazon

Working Backwards

working-backwards
The Amazon Working Backwards Method is a product development methodology that advocates building a product based on customer needs. The Amazon Working Backwards Method gained traction after notable Amazon employee Ian McAllister shared the company’s product development approach on Quora. McAllister noted that the method seeks “to work backwards from the customer, rather than starting with an idea for a product and trying to bolt customers onto it.”

Amazon Flywheel

amazon-flywheel
The Amazon Flywheel or Amazon Virtuous Cycle is a strategy that leverages on customer experience to drive traffic to the platform and third-party sellers. That improves the selections of goods, and Amazon further improves its cost structure so it can decrease prices which spins the flywheel.

Jeff Bezos Day One

jeff-bezos-day-1
In the letter to shareholders in 2016, Jeff Bezos addressed a topic he had been thinking quite profoundly in the last decades as he led Amazon: Day 1. As Jeff Bezos put it “Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1.”

Regret Minimization Framework

regret-minimization-framework
A regret minimization framework is a business heuristic that enables you to make a decision, by projecting yourself in the future, at an old age, and visualize whether the regrets of missing an opportunity would hunt you down, vs. having taken the opportunity and failed. In short, if taking action and failing feels much better than regretting it, in the long run, that is when you’re ready to go!

Network Effects

network-effects
A network effect is a phenomenon in which as more people or users join a platform, the more the value of the service offered by the platform improves for those joining afterward.

Platform Business Model

platform-business-models
A platform business model generates value by enabling interactions between people, groups, and users by leveraging network effects. Platform business models usually comprise two sides: supply and demand. Kicking off the interactions between those two sides is one of the crucial elements for a platform business model’s success.

Jeff Bezos Empire

jeff-bezos-companies
Jeff Bezos was best known for founding eCommerce giant Amazon in 1994. However, the entrepreneur owns companies in several industries, including health care, retail, robotics, real estate, and media. Many of these companies have been acquired by Amazon over the years, but some have been the result of direct investment from Bezos himself (through his investment arm is called Bezos Expeditions).

Amazon Subsidiaries

amazon-subsidiaries
Amazon is a consumer e-commerce platform with a diversified business model spanning across e-commerce, cloud, advertising, streaming, and more. Over the years Amazon acquired several companies. Among its 12 subsidiaries, Amazon has AbeBooks.com, Audible, CamiXology, Fabric.com, IMDb, PillPack, Shopbop, Souq.com, Twitch, Whole Foods Market, Woot! and Zappos.

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