‘Tis the season for shopping.
For many of us, that means buying things online – and if you are like most internet denizens, you’ll be picking up at least one item this holiday season through the the world’s largest e-commerce giant, Amazon.
The company’s sales numbers are growing at a staggering pace. Last year, Amazon had $136 billion in sales, and the company is projected to finish at the $177 billion mark this year.
What are the exact sources of Amazon’s revenue, and how does it all break down?
HOW AMAZON MAKES MONEY
Today’s infographic comes to us from Sellbrite, and it dives into the company’s success, and how Amazon makes money:
To the chagrin of many investors, Amazon has traditionally spent a lot to make a little.
In 2016, for example, the company brought in $136 billion in net sales, but it spent $131.8 billion on operating expenses. That gave the company an operating income of $4.2 billion.
However, that high-growth strategy seems to be paying off.
During the same period, e-commerce revenue jumped 25%, AWS revenue increased 55%, and net income skyrocketed 302%. The growth has continued through 2017 and it’s why Jeff Bezos is now the richest person in the world.
A CLOSER LOOK
Here’s how Amazon makes money, according to the company’s last annual report for 2016:
Which areas of Amazon’s business are growing the fastest – and where is the company investing in the future?
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