Amazon Business Model

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Amazon is a complex organization that has various parts. The business model of Amazon is extremely complex, and it’s one of the most powerful companies on earth.

Its main units are:

  • Amazon e-commerce platform, where the company sells primarily its owned brands.
  • Amazon third-party platform, where other sellers are hosted on the platform.
  • Amazon third-party services, which comprises a set of services for sellers, to help them build their business on top of Amazon.
  • Amazon Prime is a subscription program that gives Amazon’s customers the ability to get premium features on top of Amazon (like fast delivery) and access to a library of streamed content.
  • Amazon Advertising: Amazon is one of the most powerful brands on earth. And its site is one of the most popular. As the Amazon site intercepts commercial intents, it’s very easy for Amazon to sell targeted ads on the platform.
  • Amazon AWS is the cloud infrastructure, which is key to sustaining Amazon’s operations, and it is also one of the main services that are used by startups and enterprises around the world, as the underlying infrastructure to their service.

This is how Amazon’s business model works!

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