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Amazon.com, Inc. logo

Amazon.com, Inc.
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At a Glance

Uppers

Leading internet retail company with over 137 million active customer accounts

Reputation for low prices and reliability

Downers

Lack of charitable corporate giving in past years

Employees often work long days and overtime hours, especially during the holidays

The Bottom Line

A well-respected company that is an industry leader in new products and technology.

About Amazon.com, Inc.

Amazon.com began as a bookstore, and becomes a store for almost all products. Its website still offers millions of books, as well as other media, home furnishings, clothing, pet supplies, office products, health and beauty, jewelry, consumer electronics, software, lawn and patio, grocery, automotive products and hundreds of other product categories. In terms of electronics, Amazon manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, and other devices, and develops and produces media content. The company is also the dominant cloud services provider (through Amazon Web Services, or AWS), an influential entertainment company through its video streaming operations, a force to be reckoned with in grocery with its ownership of natural foods chain Whole Foods, and a leader in digital personal assistant devices with Alexa and its Echo product line. Amazon.com, Inc. was incorporated in 1994 in the state of Washington and reincorporated in 1996 in the state of Delaware.

Operations

Amazon.com organizes reporting of its operations into three segments: North America (about 60% of revenue), International (nearly 30%), and Amazon Web Services (AWS, about 15%).

Its North America segment includes retail sales and subscriptions sold via North American-focused websites, as well as through Whole Foods grocery stores, while the International segment includes the operations of internationally-focused websites such as Amazon sites serving the UK, Spain, Japan, and other countries. AWS includes global revenue from its cloud, storage, database, and other services.

Stepping back from the geographic reporting, online sales, including products sold on behalf of third-parties, account for about 70% of Amazon's total revenue. Whole Foods physical stores generate just under 10% of revenue, with the company's subscription services -- annual and monthly fees associated with Amazon Prime membership, as well as audiobook, e-book, digital video, digital music, and other services -- contributing more than 5%.

In terms of fulfillment costs, it is consist of those costs incurred in operating and staffing in North America and International segments' fulfillment centers, physical stores, and customer service centers, including costs attributable to buying, receiving, inspecting, and warehousing inventories; picking, packaging, and preparing customer orders for shipment and other ways.

Geographic Reach

The US is by far Seattle-based Amazon.com's largest market by sales (about 50%), with Germany, the UK, and Japan the top three international markets. Amazon has more than 175 operating fulfillment centers and more than 150 million square feet of space where associates pick, pack, and ship millions of Amazon.com customer orders to the tune of millions of items per year. Specifically, in North America, Amazon currently has more than 110 operational facilities with a variety of employment opportunities.

Sales and Marketing

Amazon.com serves consumers like sellers, developers, enterprises, and content creators. In addition, Amazon provides services, such as advertising to sellers, vendors, publishers, and authors, through programs such as sponsored ads, display, and video advertising.

Its AWS segment targets businesses of all sizes, government agencies, schools, and other entities.

Financial Performance

It is a bit of an understatement to call Amazon.com's recent revenue growth strong. Amid a boon in online shopping, the company's sales have rocketed more than 160% since 2015. Net income had been slightly more volatile amid heavy investments, but that figure has exploded in the past three years.

The company reported a 20% increase in 2019 to $280.5 billion. All three segments grew that year, with North America adding about $29.4 billion.

Amazon posted record net income for the fourth consecutive year with profit of $11.6 billion, up from $10.1 billion the prior year.

Cash at the end of 2019 was about $36.4 billion, an increase of $4.2 billion from the prior year. Cash from operations contributed $38.5 billion to the coffers, while investing activities used $24.3 billion, mainly for purchases of marketable securities. Financing activities used another $10.1 billion as Amazon made principal repayments of finance lease obligations.

Strategy

The business strategy of Amazon consists of focusing on investing in technologies, enhancing its logistics applications, improving its web services by fulfillment capacity, M&A strategy, AWS segment, R&D activities in logistics, and experimenting with Fintech.

Mergers and Acquisitions

One of the ways Amazon has achieved unprecedented growth and moved into new areas is through acquisitions.

In 2020, Amazon and Zoox are pleased to announce an agreement for Amazon to acquire Zoox. Zoox is a forward-thinking team that is pioneering the future of ride-hailing by designing autonomous technology from the ground up with passengers front-of-mind.

In 2019 Amazon agreed to buy eero, a company that makes devices to blanket a home with Wi-Fi signals, for an undisclosed amount. The deal could help Amazon in its quest to put devices like its Echo digital assistant, Ring doorbells, and Blink security systems in customers' homes. The routers made by eero could ensure that voice-enabled assistants would work throughout a house, allowing the residents to turn lights and appliances on and off with voice commands.

Company Background

Jeff Bezos founded Amazon.com in 1994. After months of preparation, he launched a website in July 1995 (Douglas Hofstadter's Fluid Concepts and Creative Analogies was its first book sale); it had sales of $20,000 a week by September. Bezos and his team kept working with the site, pioneering features that now seem mundane, such as one-click shopping, customer reviews, and e-mail order verification.

Amazon went public in 1997.

 

 

 

Amazon.com, Inc.

410 Terry Ave N
Seattle, WA 98109-5210
Phone: 1 (206) 266-1000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: AMZN
Stock Exchange: , NASDAQ
Chairman, President, and CEO: Jeffrey P. Bezos
SVP and CFO: Brian T. Olsavsky
CEO, Worldwide Consumer Business: Jeffrey A. Wilke
Employees (This Location): 1,000
Employees (All Locations): 798,000

Major Office Locations

Seattle, WA

Other Locations

Huntsville, AL
Mobile, AL
Montgomery, AL
Mountain Brk, AL
Little Rock, AR
Chandler, AZ
Flagstaff, AZ
Goodyear, AZ
Phoenix, AZ
Tempe, AZ
Tucson, AZ
Berkeley, CA
Beverly Hills, CA
Brea, CA
Campbell, CA
Capitola, CA
Carlsbad, CA
Cupertino, CA
Del Mar, CA
El Segundo, CA
Folsom, CA
Fresno, CA
Glendale, CA
Hawthorne, CA
Irvine, CA
Laguna Beach, CA
Laguna Niguel, CA
La Jolla, CA
Long Beach, CA
Los Angeles, CA
Los Gatos, CA
Mill Valley, CA
Monterey, CA
Moreno Valley, CA
Mountain View, CA
Napa, CA
National City, CA
Newark, CA
Novato, CA
Oakland, CA
Oxnard, CA
Palm Desert, CA
Palo Alto, CA
Pasadena, CA
Patterson, CA
Petaluma, CA
Playa Vista, CA
Redlands, CA
Redondo Beach, CA
Redwood City, CA
Richmond, CA
Roseville, CA
Sacramento, CA
San Diego, CA
San Francisco, CA
San Jose, CA
San Leandro, CA
San Mateo, CA
San Rafael, CA
San Ramon, CA
Santa Barbara, CA
Santa Clara, CA
Santa Clarita, CA
Santa Cruz, CA
Santa Monica, CA
Santa Rosa, CA
Sebastopol, CA
Sherman Oaks, CA
Sonoma, CA
Sunnyvale, CA
Tarzana, CA
Thousand Oaks, CA
Torrance, CA
Tracy, CA
Tustin, CA
Venice, CA
Vernon, CA
Walnut Creek, CA
Watsonville, CA
West Hollywood, CA
Woodland Hills, CA
Boulder, CO
Colorado Springs, CO
Denver, CO
Fort Collins, CO
Highlands Ranch, CO
Lakewood, CO
Littleton, CO
Longmont, CO
Superior, CO
Westminster, CO
Cheshire, CT
Danbury, CT
Darien, CT
Fairfield, CT
Glastonbury, CT
Greenwich, CT
Milford, CT
Wallingford, CT
West Hartford, CT
Westport, CT
Windsor, CT
Washington, DC
Middletown, DE
Altamonte Springs, FL
Aventura, FL
Boca Raton, FL
Clearwater, FL
Coral Springs, FL
Destin, FL
Doral, FL
Fort Lauderdale, FL
Jacksonville, FL
Miami, FL
Miami Beach, FL
Naples, FL
North Miami, FL
Orlando, FL
Palm Beach Gardens, FL
Pembroke Pines, FL
Pompano Beach, FL
Ruskin, FL
Sarasota, FL
South Miami, FL
Tallahassee, FL
Tampa, FL
Wellington, FL
West Palm Beach, FL
Winter Park, FL
Alpharetta, GA
Atlanta, GA
Braselton, GA
Duluth, GA
Kennesaw, GA
Marietta, GA
Roswell, GA
Savannah, GA
Smyrna, GA
Honolulu, HI
Kahului, HI
Kailua, HI
Chicago, IL
Deerfield, IL
Edwardsville, IL
Elmhurst, IL
Evanston, IL
Hinsdale, IL
Itasca, IL
Joliet, IL
Lisle, IL
Monee, IL
Morton Grove, IL
Naperville, IL
Northbrook, IL
Palatine, IL
Park Ridge, IL
River Forest, IL
Romeoville, IL
Schaumburg, IL
Wheaton, IL
Willowbrook, IL
Carmel, IN
Indianapolis, IN
Jeffersonville, IN
Mishawaka, IN
Plainfield, IN
Schererville, IN
Whitestown, IN
Olathe, KS
Overland Park, KS
Wichita, KS
Hebron, KY
Lexington, KY
Louisville, KY
Shepherdsville, KY
Winchester, KY
Baton Rouge, LA
Lafayette, LA
Mandeville, LA
Metairie, LA
New Orleans, LA
Andover, MA
Bedford, MA
Bellingham, MA
Boston, MA
Braintree, MA
Brighton, MA
Brookline, MA
Cambridge, MA
Charlestown, MA
Dedham, MA
Everett, MA
Fall River, MA
Framingham, MA
Hadley, MA
Hingham, MA
Hyannis, MA
Jamaica Plain, MA
Lexington, MA
Lynnfield, MA
Marlborough, MA
Medford, MA
Newton, MA
Peabody, MA
Swampscott, MA
Wellesley, MA
Westford, MA
Woburn, MA
Annapolis, MD
Baltimore, MD
Bethesda, MD
Chevy Chase, MD
Columbia, MD
Gaithersburg, MD
Halethorpe, MD
Hyattsville, MD
Rockville, MD
Silver Spring, MD
Portland, ME
Ann Arbor, MI
Brownstown Township, MI
East Lansing, MI
Rochester Hills, MI
West Bloomfield, MI
Eagan, MN
Edina, MN
Maple Grove, MN
Minneapolis, MN
Minnetonka, MN
Saint Paul, MN
Shakopee, MN
Kansas City, MO
Saint Louis, MO
Town And Country, MO
Jackson, MS
Magee, MS
Asheville, NC
Carolina Beach, NC
Cary, NC
Chapel Hill, NC
Charlotte, NC
Durham, NC
Greensboro, NC
Huntersville, NC
Morrisville, NC
Raleigh, NC
Wilmington, NC
Winston Salem, NC
Lincoln, NE
Omaha, NE
Bedford, NH
Nashua, NH
Avenel, NJ
Bound Brook, NJ
Carteret, NJ
Closter, NJ
Edgewater, NJ
Englewood Cliffs, NJ
Englishtown, NJ
Florence, NJ
Madison, NJ
Marlton, NJ
Metuchen, NJ
Montclair, NJ
Newark, NJ
Northvale, NJ
Paramus, NJ
Princeton, NJ
Red Bank, NJ
Ridgewood, NJ
Robbinsville, NJ
Vauxhall, NJ
Wall Township, NJ
West Orange, NJ
Albuquerque, NM
Santa Fe, NM
Henderson, NV
Las Vegas, NV
Reno, NV
Albany, NY
Amherst, NY
Bethpage, NY
Brooklyn, NY
Jericho, NY
Lake Grove, NY
Manhasset, NY
New York, NY
White Plains, NY
Yonkers, NY
Cincinnati, OH
Cleveland, OH
Columbus, OH
Dayton, OH
Mason, OH
Rocky River, OH
Oklahoma City, OK
Tulsa, OK
Bend, OR
Hillsboro, OR
Portland, OR
Tigard, OR
Allentown, PA
Breinigsville, PA
Carlisle, PA
Glen Mills, PA
Hazle Township, PA
Jenkintown, PA
Lewisberry, PA
Malvern, PA
North Wales, PA
Philadelphia, PA
Pittsburgh, PA
Plymouth Meeting, PA
Wayne, PA
Wexford, PA
Wynnewood, PA
Providence, RI
Columbia, SC
Greenville, SC
Hilton Head Island, SC
Mount Pleasant, SC
North Charleston, SC
Spartanburg, SC
Chattanooga, TN
Franklin, TN
Germantown, TN
Memphis, TN
Murfreesboro, TN
Nashville, TN
Arlington, TX
Austin, TX
Cedar Park, TX
Colleyville, TX
Coppell, TX
Dallas, TX
El Paso, TX
Fort Worth, TX
Grapevine, TX
Highland Village, TX
Houston, TX
Irving, TX
Lockhart, TX
Mc Kinney, TX
Plano, TX
Richardson, TX
San Antonio, TX
Spring, TX
Sugar Land, TX
Cottonwood Heights, UT
Park City, UT
Salt Lake City, UT
Alexandria, VA
Arlington, VA
Ashburn, VA
Charlottesville, VA
Chesapeake, VA
Fairfax, VA
Falls Church, VA
Glen Allen, VA
Newport News, VA
North Dinwiddie, VA
Reston, VA
Richmond, VA
Springfield, VA
Vienna, VA
Virginia Beach, VA
Austin, WA
Bellevue, WA
Brooklyn, WA
Chicago, WA
Dupont, WA
Englewood Cliffs, WA
Kirkland, WA
Phoenix, WA
Redmond, WA
Riverdale, WA
Saint Paul, WA
Seattle, WA
Shreveport, WA
Shrewsbury, WA
Sumner, WA
Vancouver, WA
Madison, WI
Milwaukee, WI
Bengaluru, India
Chennai, India
Hyderabad, India
Karnataka, India
Avigliana, Italy
Buccinasco, Italy
Burago Di Molgora, Italy
Calenzano, Italy
Castel San Giovanni, Italy
Fiano Romano, Italy
Marene, Italy
Milano, Italy
Origgio, Italy
Pomezia, Italy
Roma, Italy
Valsamoggia, Italy
Vigonza, Italy
Daito, Japan
Hiki-Gun, Japan
Ichikawa, Japan
Kawagoe, Japan
Odawara, Japan
Osaka, Japan
Sakai, Japan
Sapporo, Japan
Sayama, Japan
Sendai, Japan
Tosu, Japan
Yachiyo, Japan
Brampton, Canada
Burnaby, Canada
Markham, Canada
Milton, Canada
Mississauga, Canada
New Westminster, Canada
North York, Canada
Oakville, Canada
Ottawa, Canada
Toronto, Canada
Vancouver, Canada
Victoria, Canada
Bruxelles, Belgium
London, England
Jorvas, Finland
Bad Hersfeld, Germany
München, Germany
Zürich, Switzerland