EVOLUTION OF AMAZON’S ECONOMIC INDICATORS

The time series shows net revenue from e-commerce sales and Amazon sendees from 2004 to 2018, in billions of US dollars. Last year, the company’s net revenue was S232.89 billion, up from $177.87 billion in 2017.

As of 2017, the company generates the majority of its net revenue through online retail product sales, followed by third-party retailer sendees, and retail subscription sendees, including Amazon Prime and AWS. Amazon is also the leading eBook reader product Amazon Kindle (Figure 17.1).

Amazon has employed 647,500 full-time and part-time employees. The list of products and services sold on Amazon includes a variety of electronics, books, cloud infrastructure supplies, clothing, furniture, food, toys, jewehy, and more. About 61% of Amazon’s global revenue for 2017 was collected from electronic retail sales of electronics such as smartphones, tablets, and others, and about 17.9% came from third-party retail services.

Amazon has far more Google employees and competitors in e-commerce than eBay. According to the ranking of the most valuable companies in the world in 2018, Google ranked first, followed by Apple in second place with a brand value of S300.59 billion, followed by the strongest companies such as Netflix, Publix, and Amazon.

Net e-commerce sales revenue for Amazon 2004-2018

FIGURE 17.1 Net e-commerce sales revenue for Amazon 2004-2018.

Source: www.statista.com/topics/846/amazon.

On the other hand, Amazon’s marketing spending on online retailers amounted to more than $13 billion, an increase of more than $10 billion compared to 2017. In 2019, the online retail platform was expected to account for 13.7% of e-retail sales worldwide. In the US, Amazon is expected to account for more than half of the domestic e-commerce market.

According to the survey conducted in 2017 on the characteristics of the company Amazon, 66% of respondents agreed that the company is sensitive to modernity, 62% of them admitted to being one of the most attractive companies for customers, while 55% of them saw it as an innovative company, while 24% saw it is as an environmentally friendly and adheres to the principles of transparency [15].

 
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