Amazon was profitable in 2021. The company generated over $33 billion in net income, primarily driven by the Amazon AWS business, which contributed to over 55% of its operating margins and other profitable parts like Amazon Prime and Ads. The Amazon e-commerce platform runs at tight operating margins since it’s built for scale.
Amazon aggressive growth
While it managed to survive the dot-com bubble Amazon also hat to tweak its business playbook throughout those years:
Source: Amazon S-1
Amazon’s business model today has several moving parts:
- Amazon e-commerce.
- Amazon platform business (Amazon hosts third-party sellers on the platform since the early 2000s).
- Amazon AWS.
- Amazon Prime.
- And more.
That is because AWS has different unit economics logic:
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- Amazon Case Study: Why from Product to Subscription You Need to “Swallow the Fish”
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- What Is the Cost per First Stream Metric?
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For more business resources:
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