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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 '' ...
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 managem ...
,
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 mu ...
,
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, 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 r ...
. 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 (computing), data . and information. IT forms part of information and communications technology (ICT). An information te ...
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 syllab ...
,
Apple An apple is an edible fruit produced by an apple tree (''Malus domestica''). Apple trees are cultivated worldwide and are the most widely grown species in the genus ''Malus''. The tree originated in Central Asia, where its wild ancestor, ' ...
, Meta, 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, Washin ...
. 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 including
Amazon Web Services Amazon Web Services, Inc. (AWS) is a subsidiary of Amazon that provides on-demand cloud computing platforms and APIs to individuals, companies, and governments, on a metered pay-as-you-go basis. These cloud computing web services provide d ...
(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,
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 co ...
,
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. 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 a ...
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 mu ...
service through AWS, live-streaming 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. 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, driven in large part by its paid subscription plan, Amazon Prime, 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 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 ...
,
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 co ...
, 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 ru ...
units. It publishes books through its publishing arm, Amazon Publishing, 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 through MGM Holdings, founded on April 17, 1924 ...
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. Usuall ...
—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 lis ...
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 products. At a certain point in the combustion reaction, called the ignition point, flames a ...
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 jurisdi ...
, 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, Washin ...
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 ''Öffentlichk ...
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 that provides on-demand cloud computing platforms and APIs to individuals, companies, and governments, on a metered pay-as-you-go basis. These cloud computing web services provide d ...
(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-serv ...
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 (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 identi ...
, 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 physi ...
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. Usuall ...
,
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 w ...
, 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 ...
, 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'', '' Batman'', ''
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,'' and ''
Watchmen ''Watchmen'' is an American comic book maxiseries by the British creative team of writer Alan Moore, artist Dave Gibbons and colorist John Higgins. It was published monthly by DC Comics in 1986 and 1987 before being collected in a single-vo ...
''. 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 List of municipalities in California, largest city in the U.S. state, state of California and the List of United States cities by population, sec ...
and New York 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 i ...
,
New Orleans New Orleans ( , ,New Orleans
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 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 conf ...
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) 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 ...
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 that provides on-demand cloud computing platforms and APIs to individuals, companies, and governments, on a metered pay-as-you-go basis. These cloud computing web services provide d ...
(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 ...
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 artic ...
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. ...
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 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, Sou ...
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 for " 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 fourth most populous in California and 17th ...
, 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 a ...
,
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 ...
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 pr ...
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 ru ...
provides audiobooks for purchase and listening. In September 2021, Amazon announced the launch of Astro, 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 that provides on-demand cloud computing platforms and APIs to individuals, companies, and governments, on a metered pay-as-you-go basis. These cloud computing web services provide d ...
,
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 ru ...
, 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), Shopbop, 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 co ...
,
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 mu ...
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 networked computers, which communicate and coordinate their actions by passing messages to one another from any system. Distributed computing is a field of computer sci ...
processing capacity and software tools via AWS server farms. As of 2021 Q4, AWS has 33% market share for cloud infrastructure while the next two competitors Microsoft Azure 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 sc ...
, 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" 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 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, w ...
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 co ...
is a live streaming 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 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%). Th ...
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 chain 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, a company focused on researching and building innovative technology, has been a subsidiary since 2003. * Amazon Maritime, Inc. holds a Federal Maritime Commission 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 that provides on-demand cloud computing platforms and APIs to individuals, companies, and governments, on a metered pay-as-you-go basis. These cloud computing web services provide d ...
in January 2015 . * Beijing Century Joyo Courier Services, which applied for a freight forwarding license with the US Maritime Commission. 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 and FedEx. * Brilliance Audio, an audiobook publisher founded in 1984 by Michael Snodgrass in Grand Haven, 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 ...
-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, 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 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 megaco ...
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 radioi ...
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 S ...
, developers of integrated consumer electronics such as the Kindle, became a subsidiary in 2004. * Shelfari, a former social cataloging 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 managem ...
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 t ...
and served multiple areas across the
Middle East The Middle East ( ar, الشرق الأوسط, ISO 233: ) is a geopolitical region commonly encompassing Arabia (including the Arabian Peninsula and Bahrain), Asia Minor (Asian part of Turkey except Hatay Province), East Thrace (Europ ...
. 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 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 drone ...
, 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, 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 des ...
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, 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 is an experimental drone delivery service. Amazon directly employs people to work at its warehouses, bulk distribution centers, staffed " Amazon Hub 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. 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).


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. 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, 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 it ...
, Scotland, UK File:Amazon.de 1204 - panoramio.jpg, Amazon.de fulfillment center in Graben, 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 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, CEO of IronNet Cybersecurity, former NSA director * Edith W. Cooper, co-founder of Medley and former EVP of Goldman Sachs * Jamie Gorelick, 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, 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, former CEO, PepsiCo *
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 6 ...
*
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 o ...
, president and CEO, Martha's Table * Wendell P. Weeks, chairman, president and CEO, Corning Inc.


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 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 ...
. 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 jurisdicti ...
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 ...
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

Amazon has attracted criticism for its actions, including: supplying law enforcement with facial recognition surveillance tools; forming cloud computing partnerships with the CIA; 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 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 differe ...
; 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 ...
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 non-profit organisation that published news leaks and classified media provided by anonymous sources. Julian Assange, an Australian Internet activist, is generally described as its founder and director and ...
website, works containing libel 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 ent ...
, 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 Groupon is an American global e-commerce marketplace connecting subscribers with local merchants by offering activities, travel, goods and services in 13 countries. Based in Chicago, Groupon was launched there in November 2008, launching soon af ...
,
eBay eBay Inc. ( ) is an American multinational e-commerce company based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995 and became ...
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 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 and 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 An Amazon Standard Identification Number (ASIN) is a 10-character alphanumeric unique identifier assigned by Amazon.com and its partners for product identification within the Amazon organization. They were originated in 1996 by Rebecca Allen, an ...
(ASIN) *
Camelcamelcamel Camelcamelcamel is a website that tracks prices of products sold on Amazon. Founded by Daniel Green in 2008 and developed by Cosmic Shovel Inc. In 2015 it was voted as the most popular price tracking tool among Lifehacker readers. Due to a fail ...
– a website that tracks the prices of products sold on Amazon.com * History of Amazon * Internal carbon pricing *
List of book distributors This is a list of book distributors, companies that act as distributors for book publishers, selling primarily to the book trade. The list includes defunct and merged/acquired companies, and distributors whose primary business is not books, such as ...
* Statistically improbable phrases – Amazon.com's phrase extraction technique for indexing books


References


Further reading

* * * * * *


External links

* * {{Authority control 1994 establishments in Washington (state) 1997 initial public offerings 3D publishing American companies established in 1994 Android (operating system) software Arts and crafts retailers Bookstores of the United States Cloud computing providers Companies listed on the Nasdaq Ebook suppliers Internet properties established in 1994 IOS software Logistics companies of the United States Mobile phone manufacturers Multinational companies headquartered in the United States Online music stores of the United States Online retailers of the United States Retail companies established in 1994 Self-publishing companies Software companies based in Seattle Software companies established in 1994 Software companies of the United States Technology companies established in 1994 Transportation companies based in Washington (state) TvOS software Universal Windows Platform apps Webby Award winners