Amazon, the global e-commerce giant, has a diverse revenue stream. The company’s online stores, physical stores, and third-party seller services collectively make up 72% of its revenue, with online stores contributing the largest share at 50%. Amazon’s subscription services, including Prime memberships, contribute 18% to overall revenue.
Amazon Web Services (AWS), the firm’s cloud computing division, contributes a significant 9% of total revenue, though it accounts for a staggering 58% of the company’s operating income. The company’s “other” category, which includes advertising services and co-branded credit cards, makes up a modest 5% of total revenue.
Despite the relatively small contribution to total revenue, AWS and the “other” category are critical to Amazon’s profitability. AWS, in particular, has high profit margins, helping to offset the lower margins in Amazon’s core e-commerce business. The “other” category, with its high-margin advertising services, also plays a key role in boosting the company’s bottom line.
Amazon’s diverse revenue streams and strategic focus on high-margin businesses have been instrumental in driving the company’s impressive growth and profitability.
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