How Amazon Makes Money

Amazon is huge. It’s a lot bigger than you think. It’s bigger than Walmart. It’s even bigger than Walmart and its leading seven competitors combined. So how did an online bookseller turn into the largest online retailer in the world?

Part of the secret sauce for Amazon is its approach to business. Rather than setting out to be the biggest and the best bookseller, Amazon set its sights on growth and didn’t limit itself to one area of the market. A significant portion of the profits are reinvested into growth areas, so today Amazon is also a leader in areas like cloud computing, smart home devices, and tablets.

Individual sellers can break into one of the largest and most successful online retail platforms around, and 40% of Amazon’s retail products are sold by secondary sellers. Things like household goods, toys and games, and even books are often sold by third-party sellers. But with great Amazon power comes great Amazon responsibility – sellers are terrified of losing their ability to sell on the far-reaching platform, so customer service is always a top priority.

The next major development area for Amazon is anyone’s guess, and even though Amazon will be throwing tons of money at developing it that doesn’t mean it will succeed. The Amazon branded smartphone was a total flop, but it also paved the way for the success of the Echo.

Learn more about how Amazon makes its money from this infographic. What can you learn from Amazon’s success to make your own business succeed and grow?

How Amazon Makes Money

How Amazon Makes Money

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