Amazon: E-commerce King, Cloud Titan, and Advertising Powerhouse
Amazon, founded by Jeff Bezos in 1994 as an online bookstore, has ballooned into a multifaceted
global conglomerate whose mission is to be "Earth's most customer-centric company." Led today by
CEO Andy Jassy, Amazon operates across three massive, interlocking business segments: North
America Retail, International Retail, and Amazon Web Services (AWS).
The North America and International segments encompass the core retail operations, which remain
the largest source of net sales. Amazon is the undisputed global leader in e-commerce, with
hundreds of billions of dollars in annual web sales. The retail success is fueled by the powerful
flywheel effect of its Prime subscription service, which boasts hundreds of millions of global
members. Prime members gain access to expedited shipping, Prime Video, Prime Music, and other
perks, fostering unparalleled customer loyalty and driving repeated purchases. The retail segment
also includes rapidly growing revenue from Third-Party Seller Services (fees and logistics for
independent merchants) and its burgeoning physical store footprint (like Amazon Go).
While retail drives volume, Amazon Web Services (AWS) drives profitability. Launched in 2006, AWS
provides cloud computing services—storage, compute power, databases, and more—to businesses,
governments, and academic institutions. AWS commands the largest share of the global cloud
market, often responsible for more than half of Amazon’s total operating income despite accounting
for a smaller percentage of net sales. This profit engine is now critical to funding Amazon’s aggressive
expansion into new fields.
A third major revenue pillar is Advertising. Utilizing the rich customer data gleaned from its e-
commerce platform, Amazon has built a formidable advertising arm that allows brands to promote
products directly on Amazon search and product pages. This segment generates billions in annual
revenue, positioning Amazon as a major force against traditional digital advertising giants.
Amazon's future strategy involves leveraging these pillars. It is heavily investing in fulfillment and
logistics to ensure faster, more reliable delivery, maintaining its competitive edge in e-commerce. In
entertainment, its acquisition of MGM Studios and its ownership of Twitch (the dominant live-
streaming platform) strengthen its position in the attention economy. Crucially, Amazon is applying
the vast resources and technical expertise of AWS to develop advanced AI and machine learning
tools, both for its internal use (such as optimizing inventory and logistics) and for external enterprise
clients (offering specialized agentic AI and secure data collaboration services). By dominating e-
commerce, leading cloud infrastructure, and rapidly scaling advertising, Amazon has constructed a
remarkably diversified and resilient business model.
