Amazon is more than an online store – Image: Jonathan Weiss|Shutterstock.com
Amazon: More than just an online store
Most people know Amazon for its eponymous e-commerce platform, but the world's most popular online retailer has significantly expanded its business in recent years. To underscore its ambition to become a diversified technology company and not just a one-trick pony, Amazon launched a range of new hardware products last fall, along with its own cloud gaming service.
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In addition to updating its Echo speaker lineup, Amazon also unveiled new Fire TV streaming sticks, new Wi-Fi routers, and several Ring-branded security products, including an autonomous home security drone. Perhaps the most exciting announcement was Luna, an AWS-powered cloud gaming service, along with a dedicated game controller, designed to directly compete with Google's Stadia and Microsoft's xCloud gaming services.
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As the following chart shows, Amazon's core business "online shops", i.e. first-party e-commerce sales recorded on a gross sales basis, accounted for slightly more than half (51 percent) of Amazon's total revenue in 2020, with third-party commissions, Amazon Web Services and subscription services making up the bulk of the remaining 49 percent of revenue.
Amazon: More Than An Online Store
Most people know Amazon for its namesake e-commerce platform, but the world's most popular online retailer has expanded its business considerably over the past few years. Underlining its ambitions to become a broad-based tech company rather than a one trick pony, Amazon introduced a range of new hardware products along with its very own cloud gaming service last fall.
Aside from updating its Echo line of smart speakers, Amazon also introduced new Fire TV streaming sticks, new wi-fi routers as well as several Ring-branded security products including an autonomous security drone for the home. Arguably the most exciting announcement was an AWS-powered cloud gaming service called Luna, along with a dedicated game controller, to compete directly with Google's Stadia and Microsoft's xCloud gaming services.
As the following chart shows, Amazon's core “online stores” business, the first-party e-commerce sales recognized on a gross revenue basis, accounted for little more than half (51 percent) of Amazon's total sales in 2020, with commissions charged from third-party sellers, Amazon Web Services and subscription services accounting for the bulk of the remaining 49 percent of sales.
Amazon: More than just an online store – Image: Statista
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