is-amazon-profitable

Is Amazon Profitable? Amazon Profitability 1994-2021

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

Since its inception, Amazon has been aggressively focusing on growth.

While it managed to survive the dot-com bubble Amazon also hat to tweak its business playbook throughout those years:

amazon-financials-1997-2001

Source: Amazon S-1

Amazon’s business model today has several moving parts:

Below you can appreciate the Amazon business model in full:

amazon-business-model
Amazon has a diversified business model. In 2021 Amazon posted over $469 billion in revenues and over $33 billion in net profits. Online stores contributed to over 47% of Amazon revenues, Third-party Seller Services,  Amazon AWS, Subscription Services, Advertising revenues, and Physical Stores.

As of 2021, Amazon AWS is a major contributor to Amazon’s operating and net income.

That is because AWS has different unit economics logic:

amazon-aws-business

To understand more about the Amazon business model consult the resources below: 

For more business resources:

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