AMZNNasdaqRetail-Catalog & Mail-Order HousesUS GAAP · USD

Amazon.com, Inc

Amazon.com, Inc. operates a set of consumer and business-facing platforms that combine online and physical retail, a third-party marketplace, and cloud computing. Its retail model mixes first-party product sales with service revenue streams such as third-party seller fees, advertising services, and Amazon Prime memberships, supported by large fulfillment and logistics networks. Amazon Web Services (AWS) sells on-demand technology services (compute, storage, databases, analytics, and AI/ML) to developers, enterprises, and public-sector customers. The company also designs and sells devices (e.g., Echo, Fire TV, Kindle, Ring) and produces/distributes digital media content and subscriptions.

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Revenue716.9bn USD
+12.4 %y/y
Operating profit (EBIT)80.0bn USD
+16.6 %y/y
EBIT margin11.2%
+0.4 ppy/y
Net income77.7bn USD
+31.1 %y/y
Free cash flow139.5bn USD
+20.4 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

0200400600800bn USD2020: 386.1 bn USD2020: EBIT 22.9 bn USD20202021: 469.8 bn USD2021: EBIT 24.9 bn USD20212022: 514.0 bn USD2022: EBIT 12.2 bn USD20222023: 574.8 bn USD2023: EBIT 36.9 bn USD20232024: 638.0 bn USD2024: EBIT 68.6 bn USD20242025: 716.9 bn USD2025: EBIT 80.0 bn USD2025716.980.0
RevenueOperating profit (EBIT)

Business

Share of revenue
North America retail and services59 %

Online/physical stores plus third-party seller services, Prime, and ads primarily in North America.

International retail and services23 %

Online/physical stores plus third-party seller services, Prime, and ads outside North America.

Amazon Web Services (AWS)18 %

On-demand cloud infrastructure and platform services including compute, storage, databases, analytics, and AI/ML.

Products

Reported · share of revenue
37.6%24.0%18.0%9.6%FY2025100 %
  • Online Stores37.6 %
  • Third Party Seller Services24.0 %
  • Amazon Web Services18.0 %
  • Advertising9.6 %
  • Subscription Services6.9 %
  • Other3.9 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Amazon serves multiple customer sets across its segments: consumers, third-party sellers, developers and enterprises, content creators, and advertisers. Consumers buy a broad selection of products and digital content through Amazon’s websites, mobile apps, Alexa, devices, streaming services, and physical stores, with Prime used to bundle shipping and entertainment benefits. Third-party sellers use Amazon’s marketplace and fulfillment capabilities to reach demand and outsource logistics, paying commissions and service fees where Amazon is not the seller of record. AWS customers (start-ups through large enterprises, government agencies, and academic institutions) purchase scalable technology services to run applications and data workloads, including AI/ML use cases. Advertisers and brands buy performance-oriented ad placements that direct traffic to Amazon’s stores and product detail pages.

Consumers (B2C)

Purchase products and digital content via online/physical stores; value convenience, selection, and delivery speed (often via Prime).

Third-party sellers (marketplace merchants)

Pay commissions and service fees to sell in Amazon stores and to use fulfillment/shipping and related seller programs to scale sales.

AWS customers (enterprises, start-ups, public sector)

Buy cloud compute, storage, databases, analytics, and AI/ML services to run and modernize IT workloads with on-demand capacity.

Advertisers and brands

Buy sponsored search and other advertising services to acquire customers and increase conversion within Amazon’s shopping journeys.

Prime and digital subscription users

Pay membership/subscription fees for shipping benefits and access to movies/series, live sports, and other digital benefits.

Strategy

Amazon’s strategy centers on improving the customer experience through selection, price, convenience, and delivery speed, while investing in technology and infrastructure that can be reused across multiple offerings and geographies. The company emphasizes long-term free cash flow generation, driven by operating income growth and working-capital efficiency, alongside disciplined capital allocation between owned and leased assets. It continues to expand AWS capabilities across core infrastructure services and newer workloads such as artificial intelligence and machine learning, supported by ongoing infrastructure investment. Prime is treated as an enduring marketing and loyalty mechanism, with benefits intended to sustain engagement and purchase frequency. Amazon also evaluates acquisitions and investments in complementary businesses, technologies, and infrastructure when they strengthen the ecosystem.

Scale technology and infrastructure to improve efficiencyMedium term

Shared systems and infrastructure support multiple offerings and geographies, lowering unit costs as volume grows.

Accelerate AI initiatives across AWS and internal operationsMedium term

AI demand drives cloud consumption and requires capacity planning and access to constrained components (e.g., GPUs).

Deepen customer loyalty via Prime and convenience featuresLong term

Prime benefits support retention and purchase frequency and function as an ongoing marketing tool.

Geography

2025

Amazon reports net sales across three segments that also reflect its geographic footprint: North America (59% of 2025 net sales), International (23%), and AWS (18%). North America is the largest revenue base and is closely tied to the scale and utilization of Amazon’s fulfillment and delivery network. International operations add growth and diversification but introduce foreign exchange exposure and country-specific regulatory, labor, and logistics complexity. AWS revenue is global and less tied to a single geography, but depends on the placement and expansion of data center infrastructure and the ability to source critical components for AI infrastructure. Across segments, global trade and tariff policy shifts can affect product costs, demand, and inventory planning.

United States68 %
Other countries (US filing)15 %
Germany6.4 %
United Kingdom6.0 %
Japan4.3 %

Share of the revenue the company reports by geography.

Risks

Amazon operates in intensely competitive markets spanning retail, digital media, advertising, logistics, devices, and cloud services, which can pressure pricing and require sustained investment. Retail operations carry significant inventory risk due to seasonality, rapid product cycles, tariff-driven price changes, and demand volatility, which can lead to overstocking, markdowns, or missed sales. The business depends on complex global supply chains and key suppliers (including limited sources for semiconductors and AI-related GPUs), creating exposure to shortages, delays, and supplier compliance failures. Payments-related risks and seller fraud/unlawful activity can create chargebacks, losses, and reputational harm, particularly given evolving liability standards for online platforms. Macroeconomic conditions, foreign exchange, and unpredictable trade and tariff policies can affect consumer spending, cost structure, and forecasting accuracy across segments.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Significant inventory risk (seasonality, product cycles, tariffs)1Supplier constraints and limited sources for semiconductors/GPUs2Macroeconomic and geopolitical volatility (inflation, rates, tariffs)3Fraudulent or unlawful activities by third-party sellers4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Significant inventory risk (seasonality, product cycles, tariffs)Impact: HighLikelihood: Medium

    Demand can change between ordering and sale; some inventory requires long lead times and may be non-returnable, creating markdown/obsolescence risk.

    Exposure: Retail product sales and devices; peak-season planning

  2. Supplier constraints and limited sources for semiconductors/GPUsImpact: HighLikelihood: Medium

    Availability constraints could limit the ability to develop and operate AI technologies, products, or services and delay infrastructure build-outs.

    Exposure: AWS and AI infrastructure; device supply chain

  3. Macroeconomic and geopolitical volatility (inflation, rates, tariffs)Impact: HighLikelihood: Medium

    Can reduce consumer demand, raise costs, and impair forecasting and investment returns; trade policy shifts can quickly change pricing dynamics.

    Exposure: All segments; especially retail and international operations

  4. Fraudulent or unlawful activities by third-party sellersImpact: MediumLikelihood: Medium

    Platform liability standards are unsettled and regulatory actions could require operational changes; fraud can cause customer harm and reputational damage.

    Exposure: Third-party marketplace and payments flows

Accounting

Judgemental items
Revenue recognition: product sales (gross) vs service sales (net)

Third-party seller transactions are recorded as service revenue (net share), changing comparability versus first-party product sales.

Impact: Affects reported net sales mix, gross margin, and growth interpretation.

Inventory accounting estimates

Seasonality, rapid product cycles, and demand shifts require judgments on valuation and potential write-downs.

Impact: Impacts cost of sales, operating income, and working capital.

Income taxes and valuation allowances

Effective tax rate varies with jurisdictional mix, discrete items, and uncertainty around future taxable income in certain jurisdictions.

Impact: Can create significant period-to-period swings in tax expense and net income.

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Last updated: 24/09/2026