Amazon – more than just an online retailer

Wide-ranging business segments of Amazon: from online stores till advertising services

Everybody knows Amazon for its online retail business, but it’s much more than that: Amazon’s third quarter sales in 2019 have accounted for US$70 billion in all the business segments, with a year-over-year growth of 24%.  In the third quarter of this year, the online retail segment makes up 50% of the total net revenue of the company. It accounts for US$35 billion and it’s growing considerably, compared to the third quarter of 2018.

 

 

That is not surprising, as Amazon is mainly known for its online stores. So, what else is there in Amazon’s universe? The other business sectors of Amazon are growing rapidly: Amazon web services and subscription services have a year-over-year growth of about 35%. Only physical stores record a slight decrease in revenue of -1%, compared to the previous year.
According to the company’s latest news release, net income decreased to US$2.1 billion in the third quarter, compared with a net income of US$2.9 billion in the third quarter of 2018. One of the reasons for the decrease in net income could be the transition from Prime two-day shipping to one day shipping. As Jeff Bezons, Amazon founder and CEO, said: “Customers love the transition of Prime from two days to one day –  they’ve already ordered billions of items with free one-day delivery this year. It’s a big investment, and it’s the right long-term decision for customers. “
Total net sales in the fourth quarter of 2019 are expected to be between US$80 billlion and US$86.5 billion, representing a growth of 11% to 20%.

 

 

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October 2019