"Amazon was obviously the first-mover in building out a nationwide e-commerce logistics and delivery system, and has reinforced its massive lead by outspending would-be competitors and continuing to improve delivery times, variety, and dependability. Amazon's Prime subscription, which provides its loyal customers with free two-day delivery on most items, has been further augmented with perks including a leading video streaming service."
"After spending massive sums to build its market share and delivery infrastructure, and booking losses for decades, Amazon is reaping the benefits. While first-party retail is a low-margin business, Amazon now generates increasing profit margins from its e-commerce segment. Profits primarily flow through services for third-party sellers, as well as advertising. Today, third-party sellers make up 62% of Amazon's paid units, while advertising revenue has grown to more than $60 billion over the past 12 months,"
Amazon operates as a broad conglomerate across consumer and enterprise segments. The company centers on two core businesses: e-commerce and Amazon Web Services, with a third business emerging. Amazon built a nationwide logistics and delivery system and strengthened it through heavy investment, improving delivery speed, selection, and reliability. Prime membership adds benefits such as two-day delivery and a leading video streaming service. E-commerce profitability has improved as margins grow via third-party seller services and advertising. Third-party sellers account for 62% of paid units, and advertising revenue has exceeded $60 billion in the past 12 months.
Read at The Motley Fool
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