One of the first thoughts that most individuals have when they think about Amazon is e-commerce. Most of the global population has heard about Amazon’s e-commerce business, its dominance in online retail, and related third-party sales facilitated through its platform.
However, this e-commerce behemoth is much more than a dominant player in the e-commerce industry. Amazon is a multifaceted and sophisticatedly integrated enterprise with more than a few well-developed revenue sources. In this article, we will share insights about the structure of the Amazon business portfolio and then proceed with remarks concerning the firm’s financial performance in the previous period.
We will finalize the review with the concluding remarks about challenges that the company needed to overcome to reach this level of dominance, and what the future holds for the e-commerce giant.
Amazon Sources of Income
As indicated previously, Amazon’s multifaceted structure is an excellent example of how an international business can thrive in different business environments. The scope of the various business models that form part of Amazon has all contributed to establishing Amazon as a dominant worldwide market player in more than one sector.
If we take a bold step into reviewing Amazon’s financial reports, we will become familiar with the diverse income sources that have unquestionably and collectively contributed to the establishment of Amazon as a major force in various business sectors.
The following income sources differentiated per business category are the main fragments of Amazon’s business empire:
1. E-commerce: The focal point of Amazon’s business. Even to this day, it remains the most critical revenue-wise part of the company’s business. Following the latest reports, it contributes to around 63% of the entire revenue.
There are two differentiated subparts of this part of Amazon’s business. The first revenue stream is arranged around Amazon’s online stores (direct sales), and the second subpart of significant contribution that circulates facilitating the third-party supplies via the Amazon platform (commission fees on sales).
2. Cloud services: Amazon Web Services(AWS), the company’s cloud computing service, is one of the three major revenue contributors. The expansion of Amazon’s business portfolio and its walk into cloud computing has been a massive success. Today, Amazon’s AWS has a dominant role in cloud computing. It has surpassed Microsoft Azure and Google Cloud services.
3. Subscription services: Amazon Prime and other closely connected forms of subscription-based services also represent an important source of revenue.
4. Advertising: The scope of Amazon’s advertising and marketing services is continuously growing, playing a more and more important role in the company’s assets. These services are closely connected with Amazon’s e-commerce sales or third-party sellers’ services.
5. Retail stores: Amazon’s business portfolio includes a variety of retail stores, and with the acquisition of Whole Foods Market, the company shows a strong will to grow in this sector and integrate online and offline retail channels.
Amazon’s Growth and Revenue
Amazon US
Amazon’s revenue in the last quarter of 2024 was so astonishing that it has dethroned Walmart – until that point the company with highest revenue in the US. The financial reports still support that assumption that Walmart will still remain the company with the highest yearly revenue in the US for 2025, however the amazing result from the last quarter of 2024, undoubtedly indicates that Amazon’s business is thriving.
From its entire business portfolio, Amazon made a record revenue in 2024, which reached around USD 638 billion. The most significant source of revenue from its vast array of businesses derives from online sales. Online sales or e-commerce sales represent the combination of revenue made from fees/commissions earned from third-party suppliers that operate through the e-marketplace and online sales made directly from Amazon’s stores.
Amazon Germany
Following the latest reports and related updates from 2024, within the EU countries, Germany still holds the throne position when it comes to the revenue through online sales. Amazon was well prepared for this, and it established itself as a dominant e-commerce market player since then. Following the EU-wide e-commerce market trends Amazon has been steadily investing in the German e-commerce market, to establish itself as a pioneer in many activities intrinsically connected with the e-commerce space.
Amazon revenue growth Germany 2024, shows that Germany is still the major revenue contributor to Amazon’s e-commerce sales in Europe. However, the yearly Amazon report also indicates that when it comes to the revenue made from German sales, there is an increase in the retail sales, and a decrease in the growth of its e-commerce sector.
Amazon marketplace performance Europe based on the financial report for 2024, transparently shows an increase of revenue for both parts that form Amazon’s most important, revenue-wise, e-commerce part of the business. The online sales revenue and third-party service provision revenue from the supplies facilitated on behalf of the third-party vendors have both significantly increased in comparison to 2023.
To emphasize one more time, the German e-commerce sector holds the primate when it comes to the sales numbers in the EU. This is definitely the main reason why so many global non-EU companies are looking to establish their operations first in Germany before expanding or reaching to other EU markets.
Chinese e-commerce giants like Temu and Shein are steadily expanding their % of the market within the German e-commerce sector. This online retail competition in Germany, isn’t going unnoticed by Amazon and other non-Chinese firms that are investing additional funds into the development of new types of services for third-party vendors, as well as for end customers.
Amazon vs Chinese marketplaces in Europe, is gaining more and more traction from various angles. The tension is continuously growing, even more so after the US president imposed additional import tariffs on goods that originate from China.
Amazon UK
The UK remains, after Germany, the second contributor to its e-commerce revenue, after the undisputed main contributor, the United States. The growth of the e-commerce industry in the UK has also made a positive impact on Amazon. Amazon UK sales increase in 2024 has reached double digits.
When we make a comparison between the Amazon sales statistics UK and Germany, we can see similarities. Amazon’s leading e-commerce position has remained untouched. However, the UK revenue saw a double-digit growth in comparison to 2023, while the growth in the German market is lower than it was in 2023.
This lower growth should not be taken as a highly negative parameter. Amazon e-commerce expansion UK, makes Amazon still the most profitable firm in this sector, and the most searched address for online shopping.
Conclusion
Amazon’s business story is one of grandiose success. It has established itself as one of the most impactful companies worldwide. The company’s impact hasn’t “just” reshaped the landscape of the e-commerce sector, but much, much more than that.
Its influence through e-commerce, cloud computing, subscription-based services, digital advertising and marketing, and retail stores played a major role in or contributed significantly to the redesign of entire sectors or subsectors.
It’s difficult to summarize what the future holds for Amazon in a few paragraphs, but some remarks could be made considering the last revenue figures and business decisions. The firm will probably need to invest more resources into regulatory scrutiny and compliance with ever-evolving regulations. There is also a growing call to develop new strategies and investments to stay ahead of the competition that is steadily taking a bit by bit of the e-commerce sector.
Aleksandar Delic
1stopVAT Indirect Tax Manager – E-Commerce