Amazon.com, Inc.
( ) is an American
multinational technology company
A technology company (or tech company) is an electronics-based technological company, including, for example, business relating to digital electronics, software, and internet-related services, such as e-commerce services.
Details
According to ''Fo ...
focusing on
e-commerce
E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain manageme ...
,
cloud computing
Cloud computing is the on-demand availability of computer system resources, especially data storage ( cloud storage) and computing power, without direct active management by the user. Large clouds often have functions distributed over mul ...
,
online advertising
Online advertising, also known as online marketing, Internet advertising, digital advertising or web advertising, is a form of marketing and advertising which uses the Internet to promote products and services to audiences and platform users. ...
,
digital streaming
Streaming media is multimedia that is delivered and consumed in a continuous manner from a source, with little or no intermediate storage in network elements. ''Streaming'' refers to the delivery method of content, rather than the content it ...
, and
artificial intelligence
Artificial intelligence (AI) is intelligence—perceiving, synthesizing, and inferring information—demonstrated by machines, as opposed to intelligence displayed by animals and humans. Example tasks in which this is done include speech re ...
. It has been referred to as "one of the most influential economic and cultural forces in the world", and is one of the
world's most valuable brands. It is one of the
Big Five American
information technology
Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of data . and information. IT forms part of information and communications technology (ICT). An information technology system (I ...
companies, alongside
Alphabet
An alphabet is a standardized set of basic written graphemes (called letters) that represent the phonemes of certain spoken languages. Not all writing systems represent language in this way; in a syllabary, each character represents a syll ...
,
Apple
An apple is an edible fruit produced by an apple tree (''Malus domestica''). Apple fruit tree, trees are agriculture, cultivated worldwide and are the most widely grown species in the genus ''Malus''. The tree originated in Central Asia, wh ...
,
Meta
Meta (from the Greek μετά, '' meta'', meaning "after" or "beyond") is a prefix meaning "more comprehensive" or "transcending".
In modern nomenclature, ''meta''- can also serve as a prefix meaning self-referential, as a field of study or ende ...
, and
Microsoft
Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washing ...
.
Amazon was founded by
Jeff Bezos
Jeffrey Preston Bezos ( ;; and Robinson (2010), p. 7. ''né'' Jorgensen; born January 12, 1964) is an American entrepreneur, media proprietor, investor, and commercial astronaut. He is the founder, executive chairman, and former preside ...
from his garage in
Bellevue Bellevue means "beautiful view" in French. It may refer to:
Placenames
Australia
* Bellevue, Western Australia
* Bellevue Hill, New South Wales
* Bellevue, Queensland
* Bellevue, Glebe, an historic house in Sydney, New South Wales
Canada ...
, Washington, on July 5, 1994. Initially an online marketplace for books, it has expanded into a multitude of product categories, a strategy that has earned it the moniker ''The Everything Store''. It has multiple
subsidiaries
A subsidiary, subsidiary company or daughter company is a company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that either belong to the same parent company or having a sa ...
including
Amazon Web Services
Amazon Web Services, Inc. (AWS) is a subsidiary of Amazon.com, Amazon that provides Software as a service, on-demand cloud computing computing platform, platforms and Application programming interface, APIs to individuals, companies, and gover ...
(cloud computing),
Zoox (
autonomous vehicles
Vehicular automation involves the use of mechatronics, artificial intelligence, and multi-agent systems to assist the operator of a vehicle (car, aircraft, watercraft, or otherwise).Hu, J.; Bhowmick, P.; Lanzon, A.,Group Coordinated Control o ...
),
Kuiper Systems
Kuiper Systems LLC is a subsidiary of Amazon that was set up in 2019 to deploy a large broadband satellite internet constellation to provide broadband internet connectivity. The deployment is also referred to by its project name "Project Kuipe ...
(satellite Internet), and
Amazon Lab126
Amazon Lab126 (sometimes known as Lab126) is an American research and development and computer hardware company owned by Amazon.com. It was founded in 2004 by Gregg Zehr, previously Vice President of Hardware Engineering at Palm, and is based in ...
(computer hardware
R&D). Its other subsidiaries include
Ring
Ring may refer to:
* Ring (jewellery), a round band, usually made of metal, worn as ornamental jewelry
* To make a sound with a bell, and the sound made by a bell
:(hence) to initiate a telephone connection
Arts, entertainment and media Film and ...
,
Twitch
Twitch may refer to:
Biology
* Muscle contraction
** Convulsion, rapid and repeated muscle contraction and relaxation
** Fasciculation, a small, local, involuntary muscle contraction
** Myoclonic twitch, a jerk usually caused by sudden muscle con ...
,
IMDb
IMDb (an abbreviation of Internet Movie Database) is an online database of information related to films, television series, home videos, video games, and streaming content online – including cast, production crew and personal biographies, ...
, and
Whole Foods Market
Whole Foods Market IP, Inc., a subsidiary of Amazon, is an upscale American multinational supermarket chain headquartered in Austin, Texas, which sells products free from hydrogenated fats and artificial colors, flavors, and preservatives. A US ...
. Its acquisition of Whole Foods in August 2017 for 13.4 billion substantially increased its footprint as a
physical retailer
Brick and mortar (also bricks and mortar or B&M) refers to a physical presence of an organization or business in a building or other structure. The term ''brick-and-mortar business'' is often used to refer to a company that possesses or leases r ...
.
Amazon has earned a reputation as a disruptor of well-established industries through technological innovation and "aggressive" reinvestment of profits into capital expenditures. As of 2021, it is the world's largest
online retailer
Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the r ...
and
marketplace
A marketplace or market place is a location where people regularly gather for the purchase and sale of provisions, livestock, and other goods. In different parts of the world, a marketplace may be described as a '' souk'' (from the Arabic), ' ...
,
smart speaker
A smart speaker is a type of loudspeaker and voice command device with an integrated virtual assistant that offers interactive actions and hands-free activation with the help of one "hot word" (or several "hot words"). Some smart speakers can al ...
provider,
cloud computing
Cloud computing is the on-demand availability of computer system resources, especially data storage ( cloud storage) and computing power, without direct active management by the user. Large clouds often have functions distributed over mul ...
service through AWS,
live-streaming
Livestreaming is streaming media simultaneously recorded and broadcast in real-time over the internet. It is often referred to simply as streaming. Non-live media such as video-on-demand, vlogs, and YouTube videos are technically streamed, but ...
service through Twitch, and
Internet company as measured by
revenue
In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business.
Commercial revenue may also be referred to as sales or as turnover. Some companies receive reven ...
and
market share
Market share is the percentage of the total revenue or sales in a market that a company's business makes up. For example, if there are 50,000 units sold per year in a given industry, a company whose sales were 5,000 of those units would have a ...
. In 2021, it surpassed
Walmart
Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarter ...
as the world's largest retailer outside of
China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
, driven in large part by its paid subscription plan,
Amazon Prime
Amazon Prime is a paid subscription service from Amazon which is available in various countries and gives users access to additional services otherwise unavailable or available at a premium to other Amazon customers. Services include same, one- ...
, which has over 200 million subscribers worldwide. It is the
second-largest private employer in the United States.
Amazon also distributes a variety of downloadable and streaming content through its
Amazon Prime Video
Amazon Prime Video, also known simply as Prime Video, is an American Video on demand#Subscription models, subscription video on-demand Over-the-top media service, over-the-top Streaming media, streaming and Renting, rental service of Amazon (c ...
,
Amazon Music
Amazon Music (previously Amazon MP3) is a music streaming platform and online music store operated by Amazon. Launched in public beta on September 25, 2007, in January 2008 it became the first music store to sell music without digital rights man ...
,
Twitch
Twitch may refer to:
Biology
* Muscle contraction
** Convulsion, rapid and repeated muscle contraction and relaxation
** Fasciculation, a small, local, involuntary muscle contraction
** Myoclonic twitch, a jerk usually caused by sudden muscle con ...
, and
Audible
Audible may refer to:
* Audible (service), an online audiobook store
* Audible (American football), a tactic used by quarterbacks
* ''Audible'' (film), a short documentary film featuring a deaf high school football player
* Audible finish or rush ...
units. It publishes books through its publishing arm,
Amazon Publishing
Amazon Publishing (simply APub) is Amazon's book publishing unit launched in 2009. It is composed of 15 imprints including AmazonEncore, AmazonCrossing, Montlake Romance, Thomas & Mercer, 47North, and TOPPLE Books.
Amazon publishes e-books via ...
, film and television content through
Amazon Studios
Amazon Studios is an American television and film producer and distributor that is a subsidiary of Amazon. It specializes in developing television series and distributing and producing films. It was started in late 2010. Content is distributed th ...
, and has been the owner of film and television studio
Metro-Goldwyn-Mayer
Metro-Goldwyn-Mayer Studios Inc., also known as Metro-Goldwyn-Mayer Pictures and abbreviated as MGM, is an American film, television production, distribution and media company owned by amazon (company), Amazon through MGM Holdings, founded o ...
since March 2022. It also produces
consumer electronics
Consumer electronics or home electronics are electronic (analog or digital) equipment intended for everyday use, typically in private homes. Consumer electronics include devices used for entertainment, communications and recreation. Usually r ...
—most notably,
Kindle e-reader
An e-reader, also called an e-book reader or e-book device, is a mobile electronic device that is designed primarily for the purpose of reading digital e-books and periodicals.
Any device that can display text on a screen may act as an e-read ...
s,
Echo
In audio signal processing and acoustics, an echo is a reflection of sound that arrives at the listener with a delay after the direct sound. The delay is directly proportional to the distance of the reflecting surface from the source and the list ...
devices,
Fire
Fire is the rapid oxidation of a material (the fuel) in the exothermic chemical process of combustion, releasing heat, light, and various reaction Product (chemistry), products.
At a certain point in the combustion reaction, called the ignition ...
tablets, and
Fire TV
Amazon Fire TV (stylized as amazon fireTV) is a line of digital media players and microconsoles developed by Amazon. The devices are small network appliances that deliver digital audio and video content streamed via the Internet to a connected ...
s.
Amazon
has been criticized for customer data collection practices, a toxic work culture,
tax avoidance
Tax avoidance is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law. A tax shelter is one type of tax avoidance, and tax havens are jurisdict ...
,
and
anti-competitive
Anti-competitive practices are business or government practices that prevent or reduce competition in a market. Antitrust laws differ among state and federal laws to ensure businesses do not engage in competitive practices that harm other, usuall ...
behavior.
History
1994–2006: Early years
Amazon was founded on July 5, 1994, by
Jeff Bezos
Jeffrey Preston Bezos ( ;; and Robinson (2010), p. 7. ''né'' Jorgensen; born January 12, 1964) is an American entrepreneur, media proprietor, investor, and commercial astronaut. He is the founder, executive chairman, and former preside ...
, who chose the
Seattle
Seattle ( ) is a seaport city on the West Coast of the United States. It is the seat of King County, Washington. With a 2020 population of 737,015, it is the largest city in both the state of Washington and the Pacific Northwest regio ...
area for its abundance of technical talent, as
Microsoft
Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washing ...
was in the area.
Amazon went
public
In public relations and communication science, publics are groups of individual people, and the public (a.k.a. the general public) is the totality of such groupings. This is a different concept to the sociological concept of the ''Öffentlichkei ...
in May 1997. It began selling music and videos in 1998, and began international operations by acquiring online sellers of books in the United Kingdom and Germany. The following year, it began selling music, video games, consumer electronics, home improvement items, software, games, and toys.
In 2002, it launched
Amazon Web Services
Amazon Web Services, Inc. (AWS) is a subsidiary of Amazon.com, Amazon that provides Software as a service, on-demand cloud computing computing platform, platforms and Application programming interface, APIs to individuals, companies, and gover ...
(AWS), which initially focused on providing APIs for web developers to build
web application
A web application (or web app) is application software that is accessed using a web browser. Web applications are delivered on the World Wide Web to users with an active network connection.
History
In earlier computing models like client-serve ...
s on top of Amazon's ecommerce platform. In 2004, AWS was expanded to provide website popularity statistics and web crawler data from the Alexa Web Information Service. AWS later shifted toward providing enterprise services with
Simple Storage Service (S3) in 2006, and
Elastic Compute Cloud
Amazon Elastic Compute Cloud (EC2) is a part of Amazon.com's cloud-computing platform, Amazon Web Services (AWS), that allows users to rent virtual computers on which to run their own computer applications. EC2 encourages scalable deployment of ...
(EC2) in 2008, allowing companies to rent data storage and computing power from Amazon. In 2006, Amazon also launched the'' Fulfillment by Amazon ''program, which allowed individuals and small companies (called "third-party sellers") to sell products through Amazon's warehouses and fulfillment infrastructure.
2007–present: Growth
Amazon purchased the
Whole Foods Market
Whole Foods Market IP, Inc., a subsidiary of Amazon, is an upscale American multinational supermarket chain headquartered in Austin, Texas, which sells products free from hydrogenated fats and artificial colors, flavors, and preservatives. A US ...
supermarket chain in 2017.
During the
COVID-19 pandemic
The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identif ...
, Amazon introduced a hazard pay of $2-per-hour, changes to overtime pay, and a policy of unlimited, unpaid time off until April 30, 2020. The hazard pay increase expired in June 2020, and the paid time-off policy in May 2022. Amazon also introduced temporary restrictions on the sale of non-essential goods, and hired 100,000 more staff in the US and Canada. Some Amazon workers in the US, France, and Italy protested the company's decision to "run normal shifts" despite many positive COVID-19 cases.
In Spain, the company has faced legal complaints over its policies.
A group of US Senators wrote an open letter to Bezos in March 2020, expressing concerns about worker safety.
On February 2, 2021, Amazon announced that Jeff Bezos would step down as CEO to become executive chair of Amazon's board in Q3 of 2021. Andy Jassy, previously CEO of AWS, became Amazon's CEO.
Products and services
Ecommerce
Amazon.com
Amazon.com is an ecommerce platform that sells many product lines, including media (
book
A book is a medium for recording information in the form of writing or images, typically composed of many pages (made of papyrus, parchment, vellum, or paper) bound together and protected by a cover. The technical term for this physical arr ...
s, movies, music, and software), apparel, baby products,
consumer electronics
Consumer electronics or home electronics are electronic (analog or digital) equipment intended for everyday use, typically in private homes. Consumer electronics include devices used for entertainment, communications and recreation. Usually r ...
,
beauty products
Cosmetics are constituted mixtures of chemical compounds derived from either natural sources, or synthetically created ones. Cosmetics have various purposes. Those designed for personal care and skin care can be used to cleanse or protect ...
, gourmet food, groceries, health and personal care products, industrial & scientific supplies, kitchen items,
jewelry
Jewellery ( UK) or jewelry (U.S.) consists of decorative items worn for personal adornment, such as brooches, rings, necklaces, earrings, pendants, bracelets, and cufflinks. Jewellery may be attached to the body or the clothes. From a western ...
, watches, lawn and garden items, musical instruments,
sporting goods
Sports equipment, sporting equipment, also called sporting goods, are the tools, materials, apparel, and gear used to compete in a sport and varies depending on the sport. The equipment ranges from balls, nets, and protective gear like helmets. ...
, tools, automotive items, toys and games, and farm
supplies and
consulting services
A consultant (from la, consultare "to deliberate") is a professional (also known as ''expert'', ''specialist'', see variations of meaning below) who provides advice and other purposeful activities in an area of specialization.
Consulting servic ...
.
Amazon websites are country-specific (for example, amazon.com for the U.S. and amazon.fr for France), though some offer international shipping.
Visits to ''amazon.com'' grew from 615 million annual visitors in 2008, to more than 2 billion per month in 2022. The ecommerce platform is the 14th most visited website in the world.
Results generated by Amazon's search engine are partly determined by promotional fees.
The company's
localized storefronts, which differ in selection and prices, are differentiated by
top-level domain
A top-level domain (TLD) is one of the domains at the highest level in the hierarchical Domain Name System of the Internet after the root domain. The top-level domain names are installed in the root zone of the name space. For all domains in ...
and
country code
Country codes are short alphabetic or numeric geographical codes (geocodes) developed to represent countries and dependent areas, for use in data processing and communications. Several different systems have been developed to do this. The term '' ...
:
= Merchant partnerships
=
In 2000, U.S. toy retailer
Toys "R" Us
Toys "R" Us is an American toy, clothing, and baby product retailer owned by Tru Kids (doing business as Tru Kids Brands) and various others. The company was founded in 1957; its first store was built in April 1948, with its headquarters loc ...
entered into a 10-year agreement with Amazon, valued at $50 million per year plus a cut of sales, under which Toys "R" Us would be the exclusive supplier of toys and baby products on the service, and the chain's website would redirect to Amazon's Toys & Games category. In 2004, Toys "R" Us sued Amazon, claiming that because of a perceived lack of variety in Toys "R" Us stock, Amazon had knowingly allowed third-party sellers to offer items on the service in categories that Toys "R" Us had been granted exclusivity. In 2006, a court ruled in favor of Toys "R" Us, giving it the right to unwind its agreement with Amazon and establish its independent e-commerce website. The company was later awarded $51 million in damages.
In 2001, Amazon entered into a similar agreement with
Borders Group
Borders Group, Inc. (former NYSE ticker symbol BGP) was an American multinational book and music retailer based in Ann Arbor, Michigan, United States. In its final year, the company employed about 19,500 people throughout the U.S., primarily in ...
, under which Amazon would comanage Borders.com as a co-branded service. Borders pulled out of the arrangement in 2007, with plans to also launch its own online store.
On October 18, 2011, Amazon.com announced a partnership with
DC Comics
DC Comics, Inc. (doing business as DC) is an American comic book publisher and the flagship unit of DC Entertainment, a subsidiary of Warner Bros. Discovery.
DC Comics is one of the largest and oldest American comic book companies, with thei ...
for the exclusive digital rights to many popular comics, including ''
Superman
Superman is a superhero who appears in American comic books published by DC Comics. The character was created by writer Jerry Siegel and artist Joe Shuster, and debuted in the comic book ''Action Comics'' #1 (cover-dated June 1938 and publi ...
'', ''
Batman
Batman is a superhero appearing in American comic books published by DC Comics. The character was created by artist Bob Kane and writer Bill Finger, and debuted in Detective Comics 27, the 27th issue of the comic book ''Detective Comics'' on ...
'', ''
Green Lantern
Green Lantern is the name of several superheroes appearing in American comic books published by DC Comics. They fight evil with the aid of rings that grant them a variety of extraordinary powers, all of which come from imagination, fearlessness, ...
'', ''
The Sandman
The Sandman is a mythical character in European folklore who puts people to sleep and encourages and inspires beautiful dreams by sprinkling magical sand onto their eyes.
Representation in traditional folklore
The Sandman is a traditional charact ...
,'' and ''
Watchmen
''Watchmen'' is an American comic book Limited series (comics), maxiseries by the British creative team of writer Alan Moore, artist Dave Gibbons and colorist John Higgins (comics), John Higgins. It was published monthly by DC Comics in 1986 a ...
''. The partnership has caused well-known bookstores like Barnes & Noble to remove these titles from their shelves.
In November 2013, Amazon announced a partnership with the
United States Postal Service
The United States Postal Service (USPS), also known as the Post Office, U.S. Mail, or Postal Service, is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the U ...
to begin delivering orders on Sundays. The service, included in Amazon's standard shipping rates, initiated in metropolitan areas of
Los Angeles
Los Angeles ( ; es, Los Ángeles, link=no , ), often referred to by its initials L.A., is the largest city in the state of California and the second most populous city in the United States after New York City, as well as one of the world' ...
and
New York
New York most commonly refers to:
* New York City, the most populous city in the United States, located in the state of New York
* New York (state), a state in the northeastern United States
New York may also refer to:
Film and television
* '' ...
because of the high-volume and inability to deliver in a timely way, with plans to expand into
Dallas
Dallas () is the List of municipalities in Texas, third largest city in Texas and the largest city in the Dallas–Fort Worth metroplex, the List of metropolitan statistical areas, fourth-largest metropolitan area in the United States at 7.5 ...
,
Houston
Houston (; ) is the most populous city in Texas, the most populous city in the Southern United States, the fourth-most populous city in the United States, and the sixth-most populous city in North America, with a population of 2,304,580 in ...
,
and
Phoenix
Phoenix most often refers to:
* Phoenix (mythology), a legendary bird from ancient Greek folklore
* Phoenix, Arizona, a city in the United States
Phoenix may also refer to:
Mythology
Greek mythological figures
* Phoenix (son of Amyntor), a ...
by 2014.
In June 2017,
Nike
Nike often refers to:
* Nike (mythology), a Greek goddess who personifies victory
* Nike, Inc., a major American producer of athletic shoes, apparel, and sports equipment
Nike may also refer to:
People
* Nike (name), a surname and feminine give ...
agreed to sell products through Amazon in exchange for better policing of counterfeit goods.
This proved unsuccessful and Nike withdrew from the partnership in November 2019.
Companies including
IKEA
IKEA (; ) is a Dutch multinational conglomerate based in the Netherlands that designs and sells , kitchen appliances, decoration, home accessories, and various other goods and home services. Started in 1943 by Ingvar Kamprad, IKEA has been t ...
and
Birkenstock
Birkenstock Group B.V. & Co. KG is a German shoe manufacturer known for its production of Birkenstocks, a German brand of sandals and other shoes notable for their contoured cork footbeds (soles) made with layers of suede and jute, which conform ...
also stopped selling through Amazon around the same time, citing similar frustrations over business practices and counterfeit goods.
In September 2017, Amazon ventured with one of its sellers JV Appario Retail owned by Patni Group which has recorded a total income of US$ 104.44 million (
₹ 759
crore
A crore (; abbreviated cr) denotes ten million (10,000,000 or 107 in scientific notation) and is equal to 100 lakh in the Indian numbering system. It is written as 1,00,00,000 with the local 2,2,3 style of digit group separators (one lakh is e ...
) in financial year 2017–2018.
,
AmazonFresh
Amazon Fresh is a subsidiary of the American e-commerce company Amazon in Seattle, Washington. It is a grocery retailer with physical stores and delivery services in most major U.S. cities, as well as some international cities, such as Berlin, Ha ...
sold a range of
Booths
Booths is a chain of high-end supermarkets in Northern England. Most of its branches are in Lancashire, but there are also branches in Cheshire, Cumbria, Greater Manchester, North Yorkshire and West Yorkshire. It has been described as the "Wait ...
branded products for home delivery in selected areas.
In November 2018, Amazon reached an agreement with
Apple Inc.
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, United States. Apple is the largest technology company by revenue (totaling in 2021) and, as of June 2022, is the world's biggest company b ...
to sell selected products through the service, via the company and selected Apple Authorized Resellers. As a result of this partnership, only Apple Authorized Resellers may sell Apple products on Amazon effective January 4, 2019.
= Private-label products
=
Amazon sells many products under its
own brand names, including phone chargers, batteries, an diaper wipes. The AmazonBasics brand was introduced in 2009, and now features hundreds of product lines, including smartphone cases, computer mice, batteries, dumbbells, and dog crates. Amazon owned 34 private-label brands as of 2019. These brands account for 0.15% of Amazon's global sales, whereas the average for other large retailers is 18%. Other Amazon retail brands include Presto!, Mama Bear, and Amazon Essentials.
= Third-party sellers
=
Amazon derives many of its sales (around 40% in 2008) from third-party sellers who sell products on Amazon. Some other large e-commerce sellers use Amazon to sell their products in addition to selling them through their websites. The sales are processed through Amazon.com and end up at individual sellers for processing and order fulfillment and Amazon leases space for these retailers. Small sellers of used and new goods go to Amazon Marketplace to offer goods at a fixed price.
= Affiliate program
=
Publishers can signup as affiliates and receive a commission for referring customers to Amazon by placing links to Amazon on their websites if the referral results in a sale. Worldwide, Amazon has "over 900,000 members" in its affiliate programs. In the middle of 2014, the Amazon Affiliate Program is used by 1.2% of all websites and it is the second most popular advertising network after Google Ads. It is frequently used by websites and non-profits to provide a way for supporters to earn them a commission.
Associates can access the Amazon catalog directly on their websites by using the
Amazon Web Services
Amazon Web Services, Inc. (AWS) is a subsidiary of Amazon.com, Amazon that provides Software as a service, on-demand cloud computing computing platform, platforms and Application programming interface, APIs to individuals, companies, and gover ...
(AWS)
XML
Extensible Markup Language (XML) is a markup language and file format for storing, transmitting, and reconstructing arbitrary data. It defines a set of rules for encoding documents in a format that is both human-readable and machine-readable. T ...
service. A new affiliate product, aStore, allows Associates to embed a subset of Amazon products within another website, or linked to another website. In June 2010, Amazon Seller Product Suggestions was launched to provide more transparency to sellers by recommending specific products to third-party sellers to sell on Amazon. Products suggested are based on customers' browsing history.
= Product reviews
=
Amazon allows users to submit reviews to the web page of each product. Reviewers must rate the product on a
rating scale :''Concerning rating scales as systems of educational marks, see articles about education in different countries (named "Education in ..."), for example, Education in Ukraine.''
:''Concerning rating scales used in the practice of medicine, see arti ...
from one to five stars. Amazon provides a badging option for reviewers which indicates the real name of the reviewer (based on confirmation of a credit card account) or which indicates that the reviewer is one of the top reviewers by popularity. As of December 16, 2020, Amazon removed the ability of sellers and customers to comment on product reviews and purged their websites of all posted product review comments. In an email to sellers Amazon gave its rationale for removing this feature: "... ''the comments feature on customer reviews was rarely used''." The remaining review response options are to indicate whether the reader finds the review helpful or to report that it violates Amazon policies (abuse). If a review is given enough "helpful" hits, it appears on the front page of the product. In 2010, Amazon was reported as being the largest single source of Internet consumer reviews.
When publishers asked Bezos why Amazon would publish negative reviews, he defended the practice by claiming that Amazon.com was "taking a different approach ... we want to make every book available—the good, the bad and the ugly ... to let truth loose".
There have been cases of positive reviews being written and posted by
public relations
Public relations (PR) is the practice of managing and disseminating information from an individual or an organization (such as a business, government agency, or a nonprofit organization) to the public in order to influence their perception. P ...
companies on behalf of their clients and instances of writers using pseudonyms to leave negative reviews of their rivals' works
= Amazon sales rank
=
The Amazon sales rank (ASR) indicates the popularity of a product sold on any Amazon locale. It is a relative indicator of popularity that is updated hourly. Effectively, it is a "best sellers list" for the millions of products stocked by Amazon.
While the ASR has no direct effect on the sales of a product, it is used by Amazon to determine which products to include in its bestsellers lists.
Products that appear in these lists enjoy additional exposure on the Amazon website and this may lead to an increase in sales. In particular, products that experience large jumps (up or down) in their sales ranks may be included within Amazon's lists of "movers and shakers"; such a listing provides additional exposure that might lead to an increase in sales. For competitive reasons, Amazon does not release actual sales figures to the public. However, Amazon has now begun to release
point of sale
The point of sale (POS) or point of purchase (POP) is the time and place at which a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice f ...
data via the
Nielsen BookScan
BookScan is a data provider for the book publishing industry that compiles point of sale data for book sales, owned by The NPD Group in the United States and the Nielsen Company in the United Kingdom, Ireland, Australia, New Zealand, India, South ...
service to verified authors. While the ASR has been the source of much speculation by publishers, manufacturers, and marketers, Amazon itself does not release the details of its sales rank calculation algorithm. Some companies have analyzed Amazon sales data to generate sales estimates based on the ASR, though Amazon states:
Physical stores
In November 2015, Amazon opened a physical Amazon Books store in
University Village University Village may mean:
* University Village, Albany, California
*University Village, Chicago, Illinois
*University Village, Grand Forks, North Dakota
* University Village, New York
* University Village, Riverside, California
*University Villa ...
in Seattle. The store is 5,500 square feet and prices for all products match those on its website.
Amazon will open its tenth physical book store in 2017; media speculation suggests Amazon plans to eventually roll out 300 to 400 bookstores around the country.
In June 2018, it was reported that Amazon planned to open brick and mortar bookstores in Germany.
In August 2019, Amazon applied to have a liquor store in
San Francisco
San Francisco (; Spanish language, Spanish for "Francis of Assisi, Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the List of Ca ...
, CA as a means to ship beer and alcohol within the city.
In 2020,
Amazon Fresh
Amazon Fresh is a subsidiary of the American e-commerce company Amazon in Seattle, Washington. It is a grocery retailer with physical stores and delivery services in most major U.S. cities, as well as some international cities, such as Berlin, Ha ...
opened several physical stores in the U.S. and the United Kingdom.
In September 2020, Amazon launched Luxury Stores on its mobile app, where
Oscar de la Renta
Óscar Arístides Renta Fiallo (22 July 1932 – 20 October 2014), known professionally as Oscar de la Renta, was a Dominican fashion designer. Born in Santo Domingo, he was trained by Cristóbal Balenciaga and Antonio del Castillo. De la Renta ...
become the first and only label to partner with the firm.
Hardware and services
Amazon has a number of products and services available, including its digital assistant
Alexa
Alexa may refer to: Technology
*Amazon Alexa, a virtual assistant developed by Amazon
* Alexa Internet, a defunct website ranking and traffic analysis service
* Arri Alexa, a digital motion picture camera
People
*Alexa (name), a given name and ...
,
Amazon Music
Amazon Music (previously Amazon MP3) is a music streaming platform and online music store operated by Amazon. Launched in public beta on September 25, 2007, in January 2008 it became the first music store to sell music without digital rights man ...
and
Prime Video
Amazon Prime Video, also known simply as Prime Video, is an American subscription video on-demand over-the-top streaming and rental service of Amazon offered as a standalone service or as part of Amazon's Prime subscription. The service prim ...
for music and videos respectively, the
Amazon Appstore
Amazon Appstore is an app store for Android-compatible platforms operated by Amazon.com Services, LLC, a subsidiary of Amazon.
The store is primarily used as the storefront for Amazon's Android-based Fire OS. including Amazon Fire tablets, a ...
for Android apps, and its
Kindle hardware line of e-readers and tablets.
Audible
Audible may refer to:
* Audible (service), an online audiobook store
* Audible (American football), a tactic used by quarterbacks
* ''Audible'' (film), a short documentary film featuring a deaf high school football player
* Audible finish or rush ...
provides audiobooks for purchase and listening.
In September 2021, Amazon announced the launch of
Astro
Astro may refer to:
Entertainment and media
* Astro (South Korean band), a South Korean boy band
* Astro (UB40) (1957–2021), member of the British reggae band UB40
* Astro (Chilean band), a Chilean indie rock band
* Astro (Japanese band), ...
, its first household robot, powered by its Alexa smart home technology. This can be remote-controlled when not at home, to check on pets, people, or home security. It will send owners a notification if it detects something unusual.
Subsidiaries
Amazon owns over 40 subsidiaries, including
Amazon Web Services
Amazon Web Services, Inc. (AWS) is a subsidiary of Amazon.com, Amazon that provides Software as a service, on-demand cloud computing computing platform, platforms and Application programming interface, APIs to individuals, companies, and gover ...
,
Audible
Audible may refer to:
* Audible (service), an online audiobook store
* Audible (American football), a tactic used by quarterbacks
* ''Audible'' (film), a short documentary film featuring a deaf high school football player
* Audible finish or rush ...
, Diapers.com,
Goodreads
Goodreads is an American social cataloging website and a subsidiary of Amazon that allows individuals to search its database of books, annotations, quotes, and reviews. Users can sign up and register books to generate library catalogs and read ...
,
IMDb
IMDb (an abbreviation of Internet Movie Database) is an online database of information related to films, television series, home videos, video games, and streaming content online – including cast, production crew and personal biographies, ...
, Kiva Systems (now
Amazon Robotics
Amazon Robotics, formerly Kiva Systems, is a Massachusetts-based company that manufactures mobile robotic fulfillment systems. It is a subsidiary company of Amazon.com and its automated storage and retrieval systems were previously used by compa ...
),
Shopbop Shopbop is a US online fashion apparel and accessories shop opened in 1999. It has been a subsidiary of Amazon.com since 2006.
History
Shopbop was founded by Bob Lamey, Martha Graettinger, and venture investor Ray Zemon in November 1999 in Madison, ...
, Teachstreet,
Twitch
Twitch may refer to:
Biology
* Muscle contraction
** Convulsion, rapid and repeated muscle contraction and relaxation
** Fasciculation, a small, local, involuntary muscle contraction
** Myoclonic twitch, a jerk usually caused by sudden muscle con ...
,
Zappos
Zappos.com is an American online shoe and clothing retailer based in Las Vegas, Nevada, United States. The company was founded in 1999 by Nick Swinmurn and launched under the domain name Shoesite.com. In July 2009, Amazon acquired Zappos in an ...
, and
Zoox.
Amazon Web Services
Amazon Web Services (AWS) is a subsidiary of that provides
on-demand cloud computing
Cloud computing is the on-demand availability of computer system resources, especially data storage ( cloud storage) and computing power, without direct active management by the user. Large clouds often have functions distributed over mul ...
platform
Platform may refer to:
Technology
* Computing platform, a framework on which applications may be run
* Platform game, a genre of video games
* Car platform, a set of components shared by several vehicle models
* Weapons platform, a system or ...
s and
APIs to individuals, companies, and governments, on a metered pay-as-you-go basis. These cloud computing
web services provide
distributed computing
A distributed system is a system whose components are located on different computer network, networked computers, which communicate and coordinate their actions by message passing, passing messages to one another from any system. Distributed com ...
processing capacity and software tools via AWS
server farms
A server farm or server cluster is a collection of computer servers, usually maintained by an organization to supply server functionality far beyond the capability of a single machine. They often consist of thousands of computers which require ...
. As of 2021 Q4, AWS has 33% market share for cloud infrastructure while the next two competitors
Microsoft Azure
Microsoft Azure, often referred to as Azure ( , ), is a cloud computing platform operated by Microsoft for application management via around the world-distributed data centers. Microsoft Azure has multiple capabilities such as software as a ...
and
Google Cloud Google Cloud Platform offers numerous integrated cloud-computing services, including compute, network, and storage.
Products
Past and present products under the Google Cloud platform include:
Current
* Google Cloud Datastore, a NoSQL databa ...
have 21%, and 10% respectively, according to Synergy Group.
Audible
Audible is a seller and producer of spoken audio entertainment, information, and educational programming on the Internet. Audible sells digital
audiobooks
An audiobook (or a talking book) is a recording of a book or other work being read out loud. A reading of the complete text is described as "unabridged", while readings of shorter versions are abridgements.
Spoken audio has been available in sch ...
, radio and television programs, and audio versions of magazines and newspapers. Through its production arm, Audible Studios, Audible has also become the world's largest producer of downloadable audiobooks. On January 31, 2008, Amazon announced it would buy Audible for about $300 million. The deal closed in March 2008 and Audible became a subsidiary of Amazon.
Goodreads
Goodreads
Goodreads is an American social cataloging website and a subsidiary of Amazon that allows individuals to search its database of books, annotations, quotes, and reviews. Users can sign up and register books to generate library catalogs and read ...
is a "
social cataloging
A social cataloging application is a web application designed to help users to catalog things such as books, films, music albums, etc. owned or otherwise of interest to them. The phrase refers to two characteristics that generally arise from a mult ...
" website founded in December 2006 and launched in January 2007 by Otis Chandler, a software engineer, and entrepreneur, and Elizabeth Khuri. The website allows individuals to freely search Goodreads' extensive user-populated database of books, annotations, and reviews. Users can sign up and register books to generate library catalogs and reading lists. They can also create their groups of book suggestions and discussions. In December 2007, the site had over 650,000 members, and over a million books had been added. Amazon bought the company in March 2013.
Ring
Ring is a
home automation
Home automation or domotics is building automation for a home, called a smart home or smart house. A home automation system will monitor and/or control home attributes such as lighting, climate, entertainment systems, and appliances. It m ...
company founded by Jamie Siminoff in 2013. It is primarily known for its WiFi powered
smart doorbell
A smart doorbell is an internet-connected doorbell that notifies the smartphone or other electronic device of the home owner when a visitor arrives at the door. It activates when the visitor presses the button of the doorbell, or alternatively, wh ...
s, but manufactures other devices such as security cameras. Amazon bought Ring for US$1 billion in 2018.
Twitch
Twitch
Twitch may refer to:
Biology
* Muscle contraction
** Convulsion, rapid and repeated muscle contraction and relaxation
** Fasciculation, a small, local, involuntary muscle contraction
** Myoclonic twitch, a jerk usually caused by sudden muscle con ...
is a
live streaming
Livestreaming is streaming media simultaneously recorded and broadcast in real-time over the internet. It is often referred to simply as streaming. Non-live media such as video-on-demand, vlogs, and YouTube videos are technically streamed, but no ...
platform for video, primarily oriented towards video gaming content. Twitch was acquired by Amazon in August 2014 for $970 million. The site's rapid growth had been boosted primarily by the prominence of major
esports
Esports, short for electronic sports, is a form of competition using video games. Esports often takes the form of organized, multiplayer video game competitions, particularly between professional players, individually or as teams. Although orga ...
competitions on the service, leading
GameSpot
''GameSpot'' is an American video gaming website that provides news, reviews, previews, downloads, and other information on video games. The site was launched on May 1, 1996, created by Pete Deemer, Vince Broady and Jon Epstein. In addition ...
senior esports editor Rod Breslau to have described the service as "the
ESPN
ESPN (originally an initialism for Entertainment and Sports Programming Network) is an American international basic cable sports channel owned by ESPN Inc., owned jointly by The Walt Disney Company (80%) and Hearst Communications (20%). The ...
of esports". , the service had over 1.5 million broadcasters and 100 million monthly viewers.
Whole Foods Market
Whole Foods Market
Whole Foods Market IP, Inc., a subsidiary of Amazon, is an upscale American multinational supermarket chain headquartered in Austin, Texas, which sells products free from hydrogenated fats and artificial colors, flavors, and preservatives. A US ...
is an American
supermarket
A supermarket is a self-service Retail#Types of outlets, shop offering a wide variety of food, Drink, beverages and Household goods, household products, organized into sections. This kind of store is larger and has a wider selection than earli ...
chain
A chain is a serial assembly of connected pieces, called links, typically made of metal, with an overall character similar to that of a rope in that it is flexible and curved in compression but linear, rigid, and load-bearing in tension. A c ...
exclusively featuring foods without artificial preservatives, colors, flavors, sweeteners, and hydrogenated fats. Amazon acquired Whole Foods for $13.7 billion in August 2017.
Other
Other Amazon subsidiaries include:
*
A9.com
A9.com is a former subsidiary of Amazon that develops search engine and search advertising technology. A9 is based in Palo Alto, California, with teams in Seattle, Bangalore, Beijing, Dublin, Iași, Munich and Tokyo. A9 has development effo ...
, a company focused on researching and building innovative technology, has been a subsidiary since 2003.
* Amazon Maritime, Inc. holds a
Federal Maritime Commission
The United States Federal Maritime Commission (FMC) is an independent federal agency based in Washington, D.C. that is responsible for the regulation of oceanborne international transportation of the U.S. It is chaired by Daniel B. Maffei.
His ...
license to operate as a
non-vessel-owning common carrier (NVOCC), which enables the company to manage its shipments from China into the United States.
* Amazon Pharmacy is an online delivery service dedicated to prescription drugs, launched in November 2020. The service provides discounts up to 80% for generic drugs and up to 40% for branded drugs for Prime subscribe users. The products can be purchased on the company's website or at over 50,000 bricks-and-mortar pharmacies in the United States.
* Annapurna Labs, an Israel-based microelectronics company reputedly for US$350–370M acquired by
Amazon Web Services
Amazon Web Services, Inc. (AWS) is a subsidiary of Amazon.com, Amazon that provides Software as a service, on-demand cloud computing computing platform, platforms and Application programming interface, APIs to individuals, companies, and gover ...
in January 2015 .
* Beijing Century Joyo Courier Services, which applied for a
freight forwarding
A freight forwarder, or forwarding agent, is a person or company who, for a fee organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution. license with the
US Maritime Commission
The United States Maritime Commission (MARCOM) was an independent executive agency of the U.S. federal government that was created by the Merchant Marine Act of 1936, which was passed by Congress on June 29, 1936, and was abolished on May 24, 195 ...
. Amazon is also building out its logistics in
trucking
Road transport or road transportation is a type of transport using roads. Transport on roads can be roughly grouped into the transportation of goods and transportation of people. In many countries licensing requirements and safety regulations e ...
and
air freight
Air cargo is any property carried or to be carried in an aircraft. Air cargo comprises air freight, air express and airmail.
Aircraft types
Different cargo can be transported by passenger, cargo or combi aircraft:
* Passenger aircraft use the ...
to potentially compete with
UPS
UPS or ups may refer to:
Companies and organizations
* United Parcel Service, an American shipping company
** The UPS Store, UPS subsidiary
** UPS Airlines, UPS subsidiary
* Underground Press Syndicate, later ''Alternative Press Syndicate'' or ...
and
FedEx
FedEx Corporation, formerly Federal Express Corporation and later FDX Corporation, is an American multinational conglomerate holding company focused on transportation, e-commerce and business services based in Memphis, Tennessee. The name "Fe ...
.
* Brilliance Audio, an audiobook publisher founded in 1984 by Michael Snodgrass in
Grand Haven
Grand Haven is a city within the U.S. state of Michigan and the county seat of Ottawa County. Grand Haven is located on the eastern shore of Lake Michigan at the mouth of the Grand River, for which it is named. As of the 2010 census, Grand H ...
, Michigan.
The company produced its first 8 audio titles in 1985.
The company was purchased by Amazon in 2007 for an undisclosed amount.
At the time of the acquisition, Brilliance was producing 12–15 new titles a month.
It operates as an independent company within Amazon. In 1984, Brilliance Audio invented a technique for recording twice as much on the same cassette.
The technique involved recording on each of the two channels of each stereo track.
It has been credited with revolutionizing the burgeoning audiobook market in the mid-1980s since it made unabridged books affordable.
*
ComiXology
Iconology Inc., d/b/a ComiXology (styled comiXology), is a cloud-based digital distribution platform for comics owned by Amazon, with over 200 million comic downloads . It offers a selection of more than 100,000 comic books, graphic novels, and ...
, a
cloud
In meteorology, a cloud is an aerosol consisting of a visible mass of miniature liquid droplets, frozen crystals, or other particles suspended in the atmosphere of a planetary body or similar space. Water or various other chemicals may co ...
-based digital comics platform with over 200 million comic downloads . It offers a selection of more than 40,000 comic books and graphic novels across Android, iOS, Fire OS and Windows 8 devices and over a web browser. Amazon bought the company in April 2014.
*
CreateSpace
On-Demand Publishing, LLC, doing business as CreateSpace, is a self-publishing service owned by Amazon. The company was founded in 2000 in South Carolina as BookSurge and was acquired by Amazon in 2005.
History
CreateSpace publishes books conta ...
, which offers self-publishing services for independent content creators, publishers, film studios, and music labels, became a subsidiary in 2009.
* Eero, an electronics company specializing in mesh-networking Wifi devices founded as a startup in 2014 by Nick Weaver, Amos Schallich, and Nate Hardison to simplify and innovate the smart home. Eero was acquired by Amazon in 2019 for US$97 million. Eero has continued to operate under its banner and advertises its commitment to privacy despite early concerns from the company's acquisition.
* Health Navigator is a startup developing
APIs for online health services acquired in October 2019. The startup will form part of Amazon Care, which is the company's employee healthcare service. This follows the 2018 purchase of
PillPack
PillPack, Inc. is an American online pharmacy which is a subsidiary of Amazon.com. It is based in Manchester, New Hampshire, United States. The company was founded in 2013.
History
The company was founded in 2013 by TJ Parker and Elliot Cohen. By ...
for under $1 billion, which has also been included into Amazon Care.
* Junglee, a former online shopping service provided by Amazon that enabled customers to search for products from online and offline retailers in India. Junglee started as a virtual database that was used to extract information from the Internet and deliver it to enterprise applications. As it progressed, Junglee started to use its database technology to create a single window marketplace on the Internet by making every item from every supplier available for purchase. Web shoppers could locate, compare and transact millions of products from across the Internet shopping mall through one window. Amazon acquired Junglee in 1998, and the website Junglee.com was launched in India in February 2012 as a comparison-shopping website. It curated and enabled searching for a diverse variety of products such as clothing, electronics, toys, jewelry, and video games, among others, across thousands of online and offline sellers. Millions of products are browsable, the client selects a price, and then they are directed to a seller. In November 2017, Amazon closed down Junglee.com and the former domain currently redirects to Amazon India.
*
Kuiper Systems
Kuiper Systems LLC is a subsidiary of Amazon that was set up in 2019 to deploy a large broadband satellite internet constellation to provide broadband internet connectivity. The deployment is also referred to by its project name "Project Kuipe ...
, is a subsidiary of Amazon, set up to deploy a
broadband
In telecommunications, broadband is wide bandwidth data transmission which transports multiple signals at a wide range of frequencies and Internet traffic types, that enables messages to be sent simultaneously, used in fast internet connections. ...
satellite internet constellation
A satellite internet constellation is a constellation of artificial satellites providing satellite internet service. In particular, the term has come to refer to a new generation of very large constellations (sometimes referred to as a megacon ...
with an announced 3,236
Low Earth orbit
A low Earth orbit (LEO) is an orbit around Earth with a period of 128 minutes or less (making at least 11.25 orbits per day) and an eccentricity less than 0.25. Most of the artificial objects in outer space are in LEO, with an altitude never mor ...
satellite
A satellite or artificial satellite is an object intentionally placed into orbit in outer space. Except for passive satellites, most satellites have an electricity generation system for equipment on board, such as solar panels or radioisotope ...
s to provide satellite based Internet connectivity.
[
]
*
Lab126
Amazon Lab126 (sometimes known as Lab126) is an American research and development and computer hardware company owned by Amazon.com. It was founded in 2004 by Gregg Zehr, previously Vice President of Hardware Engineering at Palm, and is based in Su ...
, developers of integrated consumer electronics such as the
Kindle, became a subsidiary in 2004.
* Shelfari, a former
social cataloging
A social cataloging application is a web application designed to help users to catalog things such as books, films, music albums, etc. owned or otherwise of interest to them. The phrase refers to two characteristics that generally arise from a mult ...
website for books. Shelfari users built virtual bookshelves of the titles which they owned or had read and they could rate, review,
tag and discuss their books. Users could also create groups that other members could join, create discussions and talk about books, or other topics. Recommendations could be sent to friends on the site for what books to read. Amazon bought the company in August 2008.
Shelfari continued to function as an independent book social network within the Amazon until January 2016, when Amazon announced that it would be merging Shelfari with
Goodreads
Goodreads is an American social cataloging website and a subsidiary of Amazon that allows individuals to search its database of books, annotations, quotes, and reviews. Users can sign up and register books to generate library catalogs and read ...
and closing down Shelfari.
*
Souq, the former largest
e-commerce
E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain manageme ...
platform in the
Arab world
The Arab world ( ar, اَلْعَالَمُ الْعَرَبِيُّ '), formally the Arab homeland ( '), also known as the Arab nation ( '), the Arabsphere, or the Arab states, refers to a vast group of countries, mainly located in Western A ...
. The company launched in 2005 in
Dubai
Dubai (, ; ar, دبي, translit=Dubayy, , ) is the most populous city in the United Arab Emirates (UAE) and the capital of the Emirate of Dubai, the most populated of the 7 emirates of the United Arab Emirates.The Government and Politics of ...
,
United Arab Emirates
The United Arab Emirates (UAE; ar, اَلْإِمَارَات الْعَرَبِيَة الْمُتَحِدَة ), or simply the Emirates ( ar, الِْإمَارَات ), is a country in Western Asia (The Middle East). It is located at th ...
and served multiple areas across the
Middle East
The Middle East ( ar, الشرق الأوسط, ISO 233: ) is a geopolitical region commonly encompassing Arabian Peninsula, Arabia (including the Arabian Peninsula and Bahrain), Anatolia, Asia Minor (Asian part of Turkey except Hatay Pro ...
. On March 28, 2017, Amazon acquired Souq.com for $580 million. The company was re-branded as Amazon and its infrastructure was used to expand Amazon's online platform in the Middle East.
Amazon also has investments in renewable energy and plans to expand its position into the Canadian market through an investment in a new plant in Alberta.
Operations
Logistics
![Amazon Logistics, Borgstedt (APC 0067)](https://upload.wikimedia.org/wikipedia/commons/3/3a/Amazon_Logistics%2C_Borgstedt_%28APC_0067%29.jpg)
Amazon uses many different transportation services to deliver packages. Amazon-branded services include:
*
Amazon Air
Amazon Air, operating under the callsign Prime Air, is a cargo airline operating exclusively to transport Amazon packages. In 2017, it changed its name from Amazon Prime Air to Amazon Air to differentiate themselves from their autonomous dron ...
, a cargo airline for bulk transport, with last-mile delivery handled either by Amazon Flex, Amazon Logistics, or the U.S. Postal Service.
*
Amazon Flex
Prime Now, LLC is a subsidiary of Amazon that oversees its same-day grocery shopping and delivery service. The name also originated a brand, including a custom app, to distinguish the service from Amazon's other offerings, but both the branding a ...
, a
smartphone app
A mobile application or app is a computer program or software application designed to run on a mobile device such as a phone, tablet, or watch. Mobile applications often stand in contrast to desktop applications which are designed to run on de ...
that enables individuals to act as independent contractors, delivering packages to customers from personal vehicles without uniforms. Deliveries include one or two hours
Prime Now
Prime Now, LLC is a subsidiary of Amazon (company), Amazon that oversees its same-day grocery shopping and delivery service. The name also originated a brand, including a custom app, to distinguish the service from Amazon's other offerings, but b ...
, same or next day
Amazon Fresh
Amazon Fresh is a subsidiary of the American e-commerce company Amazon in Seattle, Washington. It is a grocery retailer with physical stores and delivery services in most major U.S. cities, as well as some international cities, such as Berlin, Ha ...
groceries, and standard Amazon.com orders, in addition to orders from local stores that contract with Amazon.
* Amazon Logistics, in which Amazon contracts with small businesses (which it calls "Delivery Service Partners") to perform deliveries to customers. Each business has a fleet of approximately 20–40 Amazon-branded vans, and employees of the contractors wear Amazon uniforms. As of December 2020, it operates in the United States, Canada, Italy, Germany, Spain, and the United Kingdom.
*
Amazon Prime Air
Amazon Prime Air, or simply Prime Air, is a drone delivery service currently in development by Amazon. The service uses delivery drones to autonomously fly individual packages to customers. In 2020 the company, along with Zipline, Wingcopter a ...
is an experimental drone delivery service.
Amazon directly employs people to work at its warehouses, bulk distribution centers, staffed "
Amazon Hub
Parcel locker is an automated postal box that allows users for a self-service collection of parcels and oversize letters as well as the dispatch of parcels.
Amazon Locker
Amazon Locker is a self-service package delivery service of parcel lockers ...
Locker+" locations, and delivery stations where drivers pick up packages. As of December 2020, it is not hiring delivery drivers as employees.
Rakuten Intelligence estimated that in 2020 in the United States, the proportion of last-mile deliveries was 56% by Amazon's directly contracted services (mostly in urban areas), 30% by the U.S. Postal Service (mostly in rural areas), and 14% by
UPS
UPS or ups may refer to:
Companies and organizations
* United Parcel Service, an American shipping company
** The UPS Store, UPS subsidiary
** UPS Airlines, UPS subsidiary
* Underground Press Syndicate, later ''Alternative Press Syndicate'' or ...
. In April 2021, Amazon reported to investors it had increased its in-house delivery capacity by 50% in the last 12 months (which included the first year of the
COVID-19 pandemic in the United States
The COVID-19 pandemic in the United States is a part of the COVID-19 pandemic, worldwide pandemic of COVID-19, coronavirus disease 2019 (COVID-19) caused by SARS-CoV-2, severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). In the Uni ...
).
Supply chain
Amazon first launched its distribution network in 1997 with two fulfillment centers in Seattle and
New Castle, Delaware. Amazon has several types of distribution facilities consisting of cross-dock centers, fulfillment centers, sortation centers, delivery stations, Prime now hubs, and Prime air hubs. There are 75 fulfillment centers and 25 sortation centers with over 125,000 employees. Employees are responsible for five basic tasks: unpacking and inspecting incoming goods; placing goods in storage and recording their location; picking goods from their computer recorded locations to make up an individual shipment; sorting and packing orders; and shipping. A computer that records the location of goods and maps out routes for pickers plays a key role: employees carry hand-held computers which communicate with the central computer and monitor their rate of progress. Some warehouses are partially automated with systems built by
Amazon Robotics
Amazon Robotics, formerly Kiva Systems, is a Massachusetts-based company that manufactures mobile robotic fulfillment systems. It is a subsidiary company of Amazon.com and its automated storage and retrieval systems were previously used by compa ...
.
In September 2006, Amazon launched a program called FBA (Fulfillment By Amazon) whereby it could handle storage, packing and distribution of products and services for small sellers.
File:Lauwin-Planque - Lauwin-Park (02).JPG, Amazon.fr fulfillment center in Lauwin-Planque
Lauwin-Planque is a commune in the Nord department in northern France.
Heraldry
See also
*Communes of the Nord department
The following is a list of the 648 communes of the Nord department of the French Republic.
The communes cooperate i ...
, France
File:Amazon España por dentro (San Fernando de Henares).JPG, Amazon.es fulfillment center in San Fernando de Henares
San Fernando de Henares is a municipality in Spain, in the province and autonomous community of Madrid. It has an area of 39.9 km² and 41,380 inhabitants. Its agricultural production includes olives, cereals, vegetables, cattle and wool. Its ...
, Spain
File:Amazon warehouse Glenrothes.jpg, Amazon.co.uk fulfillment center in Glenrothes
Glenrothes (; , ; sco, Glenrothes; gd, Gleann Rathais) is a town situated in the heart of Fife, in east-central Scotland. It is about north of Edinburgh and south of Dundee. The town had a population of 39,277 in the 2011 census, making i ...
, Scotland, UK
File:Amazon.de 1204 - panoramio.jpg, Amazon.de fulfillment center in Graben
In geology, a graben () is a depressed block of the crust of a planet or moon, bordered by parallel normal faults.
Etymology
''Graben'' is a loan word from German, meaning 'ditch' or 'trench'. The word was first used in the geologic contex ...
, Germany
File:AmazonIchikawaFC (78316917).jpg, Amazon.co.jp fulfillment center in Ichikawa, Japan
File:Amazon fulfillment center, Macon.jpg, Amazon fulfillment center in Macon, Georgia, U.S.
Corporate affairs
Board of directors
![Jeff Bezos 2016](https://upload.wikimedia.org/wikipedia/commons/3/33/Jeff_Bezos_2016.jpg)
, Amazon's board of directors were:
*
Jeff Bezos
Jeffrey Preston Bezos ( ;; and Robinson (2010), p. 7. ''né'' Jorgensen; born January 12, 1964) is an American entrepreneur, media proprietor, investor, and commercial astronaut. He is the founder, executive chairman, and former preside ...
, executive chairman, Amazon.com, Inc.
*
Andy Jassy
Andrew R. Jassy (born January 13, 1968) is an American business executive who is the president and chief executive officer (CEO) of Amazon. Before being appointed by Jeff Bezos and the Amazon board during the fourth quarter of 2020, Jassy served ...
, president and CEO, Amazon.com, Inc.
*
Keith B. Alexander
Keith Brian Alexander (born December 2, 1951) is a retired four-star general of the United States Army, who served as director of the National Security Agency, chief of the Central Security Service, and commander of the United States Cyber Comma ...
, CEO of IronNet Cybersecurity, former
NSA director
The director of the National Security Agency (DIRNSA) is the highest-ranking official of the National Security Agency, which is a defense agency within the U.S. Department of Defense. The director of the NSA also concurrently serves as the Chief ...
* Edith W. Cooper, co-founder of Medley and former EVP of
Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...
*
Jamie Gorelick
Jamie S. Gorelick (; born May 6, 1950) is an American lawyer who served as the Deputy Attorney General of the United States from 1994 to 1997, during the Clinton administration. She has been a partner at WilmerHale since 2003 and has served on ...
, partner,
Wilmer Cutler Pickering Hale and Dorr
Wilmer Cutler Pickering Hale and Dorr LLP, also known as Hale & Dorr and WilmerHale, is an international law firm with offices in the United States, Europe and Asia. It is co-headquartered in Washington, D.C. and Boston. It was formed in 2004 thr ...
*
Daniel P. Huttenlocher,
dean
Dean may refer to:
People
* Dean (given name)
* Dean (surname), a surname of Anglo-Saxon English origin
* Dean (South Korean singer), a stage name for singer Kwon Hyuk
* Dean Delannoit, a Belgian singer most known by the mononym Dean
Titles
* ...
of the Schwarzman College of Computing,
Massachusetts Institute of Technology
The Massachusetts Institute of Technology (MIT) is a private land-grant research university in Cambridge, Massachusetts. Established in 1861, MIT has played a key role in the development of modern technology and science, and is one of the ...
*
Judy McGrath
Judith Ann McGrath (born July 2, 1952) is an American television executive.
Early life and education
She is a graduate of Scranton High School in Scranton, Pennsylvania and Cedar Crest College in Allentown, Pennsylvania.
Career
In 2004, McGra ...
, former CEO,
MTV Networks
Paramount Media Networks (formerly known as Warner Cable Communications, Warner-Amex Satellite Entertainment, MTV Networks, Viacom Media Networks, and ViacomCBS Domestic Media Networks) is an American mass media division of Paramount Global tha ...
*
Indra Nooyi
Indra Nooyi (née Krishnamurthy; born October 28, 1955) is an Indian-American business executive and former chief executive officer and chairperson of PepsiCo.
She has consistently ranked among the world's 100 most powerful women. In 2014, sh ...
, former CEO,
PepsiCo
PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manuf ...
*
Jon Rubinstein
Jonathan J. "Jon" Rubinstein (born October 1956) is an American electrical engineer who played an instrumental role in the development of the iMac and iPod, the portable music and video device first sold by Apple Computer Inc. in 2001. He lef ...
, former chairman and CEO,
Palm, Inc.
Palm, Inc. was an American company that specialized in manufacturing personal digital assistants (PDAs) and various other electronics. They were the designer of the PalmPilot, the first PDA successfully marketed worldwide, as well as the Treo 60 ...
*
Patty Stonesifer
Patricia Q. Stonesifer (born 1956) is the former president and CEO of Martha's Table, a non-profit in Washington, D.C., that provides community-based solutions to poverty. Stonesifer currently advises business, nonprofit and government leaders on ...
, president and CEO,
Martha's Table
Martha's Table (founded in 1980) is a non-profit organization, an active charity and volunteer center in the Washington, D.C. area.
History
Martha's Table started in 1980 as a safe place for children to receive free sandwiches and food after ...
*
Wendell P. Weeks, chairman, president and CEO,
Corning Inc.
Corning Incorporated is an American multinational corporation, multinational technology company that specializes in specialty glass, ceramics, and related materials and technologies including advanced optics, primarily for industrial and scien ...
Finances
Amazon.com is primarily a retail site with a sales revenue model; Amazon takes a small percentage of the sale price of each item that is sold through its website while also allowing companies to advertise their products by paying to be listed as featured products. , Amazon.com is ranked 8th on the
Fortune 500
The ''Fortune'' 500 is an annual list compiled and published by ''Fortune'' magazine that ranks 500 of the largest United States corporations by total revenue for their respective fiscal years. The list includes publicly held companies, along ...
rankings of the largest United States corporations by total revenue.
For the fiscal year 2021, Amazon reported earnings of US$33.36 billion, with an annual revenue of US$469.82 billion, an increase of 21.7% over the previous fiscal cycle. Since 2007 sales increased from 14.835 billion to 469.822 billion, due to continued business expansion.
Amazon's market capitalization went over US$1 trillion again in early February 2020 after the announcement of the fourth quarter 2019 results.
Corporate culture
During his tenure, Jeff Bezos had become renowned for his annual shareholder letters, which have gained similar notability to those of
Warren Buffett
Warren Edward Buffett ( ; born August 30, 1930) is an American business magnate, investor, and philanthropist. He is currently the chairman and CEO of Berkshire Hathaway. He is one of the most successful investors in the world and has a net w ...
.
These annual letters gave an "invaluable window" into the famously "secretive" company, and revealed Bezos's perspectives and strategic focus.
A common theme of these letters is Bezos's desire to instill customer-centricity (in his words, "customer obsession") at all levels of Amazon, notably by making all senior executives field customer support queries for a short time at Amazon call centers. He also read many emails addressed by customers to his public email address. One of Bezos's most well-known internal memos was his mandate for "all teams" to "expose their data and functionality" through service interfaces "designed from the ground up to be externalizable". This process, commonly known as a
service-oriented architecture
In software engineering, service-oriented architecture (SOA) is an architectural style that focuses on discrete services instead of a monolithic design. By consequence, it is also applied in the field of software design where services are provide ...
(SOA), resulted in mandatory
dogfooding
Eating your own dog food or "dogfooding" is the practice of using one's own products or services. This can be a way for an organization to test its products in real-world usage using product management techniques. Hence dogfooding can act as qual ...
of services that would later be commercialized as part of AWS.
Lobbying
Amazon lobbies the United States federal government and state governments on multiple issues such as the enforcement of sales taxes on online sales, transportation safety, privacy and
data protection
Information privacy is the relationship between the collection and dissemination of data, technology, the public expectation of privacy, contextual information norms, and the legal and political issues surrounding them. It is also known as data pr ...
and intellectual property. According to regulatory filings, Amazon.com focuses its lobbying on the
United States Congress
The United States Congress is the legislature of the federal government of the United States. It is bicameral, composed of a lower body, the House of Representatives, and an upper body, the Senate. It meets in the U.S. Capitol in Washing ...
, the
Federal Communications Commission
The Federal Communications Commission (FCC) is an independent agency of the United States federal government that regulates communications by radio, television, wire, satellite, and cable across the United States. The FCC maintains jurisdiction ...
and the
Federal Reserve
The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...
. Amazon.com spent roughly $3.5 million, $5 million and $9.5 million on lobbying, in 2013, 2014 and 2015, respectively. In 2019, it spent $16.8 million and had a team of 104 lobbyists.
Amazon.com was a corporate member of the
American Legislative Exchange Council
The American Legislative Exchange Council (ALEC) is a nonprofit organization of conservative state legislators and private sector representatives who draft and share model legislation for distribution among state governments in the United State ...
(ALEC) until it dropped membership following protests at its shareholders' meeting on May 24, 2012.
In 2014, Amazon expanded its lobbying practices as it prepared to lobby the
Federal Aviation Administration
The Federal Aviation Administration (FAA) is the largest transportation agency of the U.S. government and regulates all aspects of civil aviation in the country as well as over surrounding international waters. Its powers include air traffic m ...
to approve its drone delivery program, hiring the
Akin Gump Strauss Hauer & Feld
Akin Gump Strauss Hauer & Feld LLP is an American multinational law firm headquartered in Washington, DC. It is the largest lobbying firm in the United States by revenue. Akin Gump has consistently been ranked as among the top law firms in the Un ...
lobbying firm in June. Amazon and its lobbyists have visited with Federal Aviation Administration officials and aviation committees in Washington, D.C. to explain its plans to deliver packages. In September 2020 this moved one step closer with the granting of a critical certificate by the FAA.
Criticism
![Anti-Amazon sticker](https://upload.wikimedia.org/wikipedia/commons/7/7a/Anti-Amazon_sticker.jpg)
Amazon has attracted criticism for its actions, including: supplying law enforcement with facial recognition surveillance tools;
forming cloud computing partnerships with the
CIA
The Central Intelligence Agency (CIA ), known informally as the Agency and historically as the Company, is a civilian intelligence agency, foreign intelligence service of the federal government of the United States, officially tasked with gat ...
;
leading customers away from bookshops; adversely impacting the environment;
placing a low priority on warehouse conditions for workers; actively opposing unionization efforts; remotely deleting content purchased by Amazon Kindle users; taking public subsidies; seeking to patent its
1-Click
1-Click, also called one-click or one-click buying, is the technique of allowing customers to make purchases with the payment information needed to complete the purchase having been entered by the user previously. More particularly, it allows an o ...
technology; engaging in anti-competitive actions and
price discrimination
Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices by the same provider in different markets. Price discrimination is distinguished from product different ...
;
and reclassifying
LGBT
' is an initialism that stands for lesbian, gay, bisexual, and transgender. In use since the 1990s, the initialism, as well as some of its common variants, functions as an umbrella term for sexuality and gender identity.
The LGBT term is a ...
books as adult content. Criticism has also concerned various decisions over whether to censor or publish content such as the
WikiLeaks
WikiLeaks () is an international Nonprofit organization, non-profit organisation that published news leaks and classified media provided by anonymous Source (journalism), sources. Julian Assange, an Australian Internet activism, Internet acti ...
website, works containing
libel
Defamation is the act of communicating to a third party false statements about a person, place or thing that results in damage to its reputation. It can be spoken (slander) or written (libel). It constitutes a tort or a crime. The legal defini ...
and material facilitating
dogfight
A dogfight, or dog fight, is an aerial battle between fighter aircraft conducted at close range. Dogfighting first occurred in Mexico in 1913, shortly after the invention of the airplane. Until at least 1992, it was a component in every majo ...
,
cockfight
A cockfight is a blood sport, held in a ring called a cockpit. The history of raising fowl for fighting goes back 6,000 years. The first documented use of the ''word'' gamecock, denoting use of the cock as to a "game", a sport, pastime or ente ...
, or
pedophile
Pedophilia ( alternatively spelt paedophilia) is a psychiatric disorder in which an adult or older adolescent experiences a primary or exclusive sexual attraction to prepubescent children. Although girls typically begin the process of puberty a ...
activities. In December 2011, Amazon faced a backlash from small businesses for running a one-day deal to promote its new Price Check app. Shoppers who used the app to check prices in a brick-and-mortar store were offered a 5% discount to purchase the same item from Amazon. Companies like Groupon, eBay and Taap.it countered Amazon's promotion by offering $10 off from their products.
The company has also faced accusations of putting undue pressure on suppliers to maintain and extend its profitability. One effort to squeeze the most vulnerable book publishers was known within the company as the Gazelle Project, after Bezos suggested, according to Brad Stone (journalist), Brad Stone, "that Amazon should approach these small publishers the way a cheetah would pursue a sickly gazelle."
In July 2014, the Federal Trade Commission launched a lawsuit against the company alleging it was promoting in-app purchases to children, which were being transacted without parental consent. In 2019, Amazon banned selling Skin whitening, skin-lightening and Racism, racist products that might affect the consumer's health. In 2022, a lawsuit filed by state attorney-general Letitia James was dismissed by the New York state court of appeals.
See also
* Amazon Breakthrough Novel Award
* Amazon Pay
* Amazon Standard Identification Number (ASIN)
* Camelcamelcamel – a website that tracks the prices of products sold on Amazon.com
* History of Amazon
* Carbon tax#Internal price on carbon, Internal carbon pricing
* List of book distributors
* Statistically improbable phrases – Amazon.com's phrase extraction technique for indexing books
References
Further reading
*
*
*
*
*
*
External links
*
*
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