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Amazon.com, Inc. ( ) is an American multinational technology company focusing on e-commerce, cloud computing, online advertising,
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. 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 companies, alongside Alphabet, Apple,
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. Amazon was founded by Jeff Bezos from his garage in Bellevue, 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 (cloud computing), Zoox ( autonomous vehicles), Kuiper Systems (satellite Internet), and Amazon Lab126 (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, IMDb, and Whole Foods Market. 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 and marketplace, smart speaker provider, cloud computing 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 no ...
service through Twitch, and Internet company as measured by revenue 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 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, Twitch, and Audible 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, and has been the owner of film and television studio Metro-Goldwyn-Mayer since March 2022. It also produces consumer electronics—most notably,
Kindle Kindle may refer to: Companies and products * Amazon Kindle, an e-reader line by Amazon.com ** Kindle Direct Publishing, an e-book publishing platform by Amazon ** Kindle Store, an online e-book e-commerce store by Amazon * Kindle Banking Systems, ...
e-readers, Echo devices, Fire tablets, and Fire TVs. Amazon has been criticized for customer data collection practices, a toxic work culture, tax avoidance, and anti-competitive behavior.


History


1994–2006: Early years

Amazon was founded on July 5, 1994, by Jeff Bezos, who chose the Seattle area for its abundance of technical talent, as Microsoft was in the area. Amazon went public 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 (AWS), which initially focused on providing APIs for web developers to build web applications 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 Amazon S3 or Amazon Simple Storage Service is a service offered by Amazon Web Services (AWS) that provides object storage through a web service interface. Amazon S3 uses the same scalable storage infrastructure that Amazon.com uses to run its e- ...
(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 supermarket chain in 2017. During the COVID-19 pandemic, 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 ( books, movies, music, and software), apparel, baby products, consumer electronics, beauty products, gourmet food, groceries, health and personal care products, industrial & scientific supplies, kitchen items, jewelry, watches, lawn and garden items, musical instruments, sporting goods, tools, automotive items, toys and games, and farm supplies and consulting services. 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:


= Merchant partnerships

= In 2000, U.S. toy retailer Toys "R" Us 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, 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 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'', ''
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''. 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 to begin delivering orders on Sundays. The service, included in Amazon's standard shipping rates, initiated in metropolitan areas of Los Angeles 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, Houston, New Orleans and Phoenix by 2014. In June 2017, Nike 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 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 (
The Indian rupee sign (₹) is the currency symbol for the Indian rupee (ISO 4217: INR), the official currency of India. Designed by D. Udaya Kumar, it was presented to the public by the Government of India on 15 July 2010, following its select ...
 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 branded products for home delivery in selected areas. In November 2018, Amazon reached an agreement with Apple Inc. 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 (AWS) XML 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 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 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 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 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, 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 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, Amazon Music and Prime Video for music and videos respectively, the Amazon Appstore for Android apps, and its
Kindle Kindle may refer to: Companies and products * Amazon Kindle, an e-reader line by Amazon.com ** Kindle Direct Publishing, an e-book publishing platform by Amazon ** Kindle Store, an online e-book e-commerce store by Amazon * Kindle Banking Systems, ...
hardware line of e-readers and tablets. Audible 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, Audible, Diapers.com, Goodreads, IMDb, 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, Zappos, and Zoox.


Amazon Web Services

Amazon Web Services (AWS) is a subsidiary of that provides on-demand cloud computing platforms and
APIs Apis or APIS may refer to: * Apis (deity), an ancient Egyptian god * Apis (Greek mythology), several different figures in Greek mythology * Apis (city), an ancient seaport town on the northern coast of Africa **Kom el-Hisn, a different Egyptian ci ...
to individuals, companies, and governments, on a metered pay-as-you-go basis. These cloud computing web services provide distributed computing 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 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, 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 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 doorbells, but manufactures other devices such as security cameras. Amazon bought Ring for US$1 billion in 2018.


Twitch

Twitch 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 senior esports editor Rod Breslau to have described the service as "the ESPN of esports". , the service had over 1.5 million broadcasters and 100 million monthly viewers.


Whole Foods Market

Whole Foods Market 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 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 and air freight 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, a cloud-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 Apis or APIS may refer to: * Apis (deity), an ancient Egyptian god * Apis (Greek mythology), several different figures in Greek mythology * Apis (city), an ancient seaport town on the northern coast of Africa **Kom el-Hisn, a different Egyptian ci ...
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, is a subsidiary of Amazon, set up to deploy a broadband satellite internet constellation with an announced 3,236 Low Earth orbit satellites to provide satellite based Internet connectivity. * Lab126, developers of integrated consumer electronics such as the
Kindle Kindle may refer to: Companies and products * Amazon Kindle, an e-reader line by Amazon.com ** Kindle Direct Publishing, an e-book publishing platform by Amazon ** Kindle Store, an online e-book e-commerce store by Amazon * Kindle Banking Systems, ...
, 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 and closing down Shelfari. * Souq, the former largest e-commerce platform in the Arab world. The company launched in 2005 in Dubai, United Arab Emirates and served multiple areas across the Middle East. 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 uses many different transportation services to deliver packages. Amazon-branded services include: * Amazon Air, 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 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, Spain File:Amazon warehouse Glenrothes.jpg, Amazon.co.uk fulfillment center in Glenrothes, 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

, Amazon's board of directors were: * Jeff Bezos, executive chairman, Amazon.com, Inc. * Andy Jassy, 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 *
Daniel P. Huttenlocher Daniel Peter Huttenlocher is an American computer scientist, academic administrator and corporate director. He is the inaugural dean of the Schwarzman College of Computing at the Massachusetts Institute of Technology.Matheson, Rob"Dan Huttenloch ...
, dean of the Schwarzman College of Computing, Massachusetts Institute of Technology *
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 *
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, former chairman and CEO, Palm, Inc. * Patty Stonesifer, 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 Wendell P. Weeks (born 1959/60) is an American businessman, the chairman, CEO, and president of Corning Inc. Education Weeks received a bachelor's degree in accounting and finance from Lehigh University in Bethlehem, Pennsylvania, in 1981, and an ...
, 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. 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 (SOA), resulted in mandatory dogfooding 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 and intellectual property. According to regulatory filings, Amazon.com focuses its lobbying on the United States Congress, the Federal Communications Commission and the Federal Reserve. 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 (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 to approve its drone delivery program, hiring the Akin Gump Strauss Hauer & Feld 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

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; and reclassifying LGBT books as adult content. Criticism has also concerned various decisions over whether to censor or publish content such as the WikiLeaks 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, cockfight, or pedophile 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, "that Amazon should approach these small publishers the way a cheetah would pursue a sickly gazelle." In July 2014, the
Federal Trade Commission The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction ov ...
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-lightening Skin whitening, also known as skin lightening and skin bleaching, is the practice of using chemical substances in an attempt to lighten the skin or provide an even skin color by reducing the melanin concentration in the skin. Several chemicals ha ...
and
racist Racism is the belief that groups of humans possess different behavioral traits corresponding to inherited attributes and can be divided based on the superiority of one race over another. It may also mean prejudice, discrimination, or antagonism ...
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 The Amazon Breakthrough Novel Award (ABNA) was a contest sponsored by Amazon.com, Penguin Group, Hewlett Packard, CreateSpace and BookSurge to publish and promote a manuscript by an unknown or unpublished author. The first award was given in 2008 ...
*
Amazon Pay Amazon Pay is an online payments processing service owned by Amazon. Launched in 2007, Amazon Pay uses the consumer base of Amazon.com and focuses on giving users the option to pay with their Amazon accounts on external merchant websites. As of ...
* Amazon Standard Identification Number (ASIN) * Camelcamelcamel – a website that tracks the prices of products sold on Amazon.com *
History of Amazon Amazon.com, Inc. is an American multinational technology company which focuses on e-commerce, cloud computing, and digital streaming. It has been referred to as "one of the most influential economic and cultural forces in the world", and is on ...
* Internal carbon pricing * List of book distributors *
Statistically improbable phrases A statistically improbable phrase (SIP) is a phrase or set of words that occurs more frequently in a document (or collection of documents) than in some larger corpus. Amazon.com uses this concept in determining keywords for a given book or chapter, ...
– Amazon.com's phrase extraction technique for indexing books


References


Further reading

* * * * * *


External links

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