Amazon is a profitable company. Its operating income and net income passed $12.4 billion and $10 billion respectively in 2018. The operating income was driven primarily by Amazon AWS, contributing $7.29 billion. Amazon has been consistently profitable since 2015 when it posted 596 million in profits.

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:

Source: Amazon S-1

Amazon 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
• Advertising
• And more

Below you can appreciate the Amazon business model in full:

As of 2018-2019, Amazon AWS is a major contributor to Amazon operating and net income. That is because AWS has different unit economics logic:

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

• Amazon Business Model 
• What Is the Receivables Turnover Ratio? How Amazon Receivables Management Helps Its Explosive Growth
• Amazon Case Study: Why from Product to Subscription You Need to “Swallow the Fish”
• What Is Cash Conversion Cycle? Amazon Cash Machine Business Model Explained
• Why Is AWS so Important for Amazon Future Business Growth?
• Amazon Flywheel: Amazon Virtuous Cycle In A Nutshell
• Amazon Value Proposition In A Nutshell
• Why Amazon Is Doubling Down On AWS
• The Economics Of The Amazon Seller Business In A Nutshell
• How Much Is Amazon Advertising Business Worth?
• What Is the Cost per First Stream Metric? Amazon Prime Video Revenue Model Explained
• Jeff Bezos Teaches You When Judgment Is Better Than Math And Data
• Alibaba vs. Amazon Compared in a Single Infographic
• Amazon Mission Statement and Vision Statement In A Nutshell
• The Amazon Leadership Principles Crafted By Jeff Bezos

For more business resources:

• What Is a Business Model? 30 Successful Types of Business Models You Need to Know
• The Complete Guide To Business Development
• Business Strategy: Definition, Examples, And Case Studies
• What Is a Business Model Canvas? Business Model Canvas Explained
• Blitzscaling Business Model Innovation Canvas In A Nutshell
• What Is a Value Proposition? Value Proposition Canvas Explained
• What Is a Lean Startup Canvas? Lean Startup Canvas Explained
• What Is Market Segmentation? the Ultimate Guide to Market Segmentation
• Marketing Strategy: Definition, Types, And Examples
• Marketing vs. Sales: How to Use Sales Processes to Grow Your Business
• How To Write A Mission Statement
• What is Growth Hacking?
• Growth Hacking Canvas: A Glance At The Tools To Generate Growth Ideas