Low margin revenue from retail e-commerce sales and fulfillment
E-commerce and fulfillment are low-margin due to costs related to warehousing and upkeeping fulfillment centers
2
Amazon Web Services
To provide cloud services, infrastructure, and data storage to business clients in an agile, flexible, scalable, and secure form.
Household Consumer Clients
Household consumer
Require cloud services and infrastructure
Advertise on Amazon
High margin revenue streams from AWS, advertising, and subscription services
Low upkeep and variable costs allow AWS, advertising, and subscription services to be the primary profit driver for Amazon, despite being a significantly smaller revenue stream