Business Model Canvas

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Customer Segments

Household Consumer Clients
Household consumer
Require cloud services and infrastructure
Advertise on Amazon
Retail Clients
Purchase products listed on Amazon
Purchase Amazon’s subscriptions services (Prime)

Value Proposition

To provide an online shopping platform that quickly delivers any item, to any person, anywhere, at any time.
Amazon Web Services
To provide cloud services, infrastructure, and data storage to business clients in an agile, flexible, scalable, and secure form.

Revenue Streams

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
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


Global distribution channels through shipping partners and fully streamlined fulfillment centers
Enormous online marketing and advertising platforms

Customer Relationships

Best-in-class fulfillment systems allowing customers to receive their orders within 1-2 days
Online/phone communication channels and built-in support channels on Amazon hardware
“Customer-first” service mindset regardless of customer segment

Key Activities

Quick fulfillment processes
Just-in-time delivery and shipping systems allowing for Amazon Prime to deliver orders within 1-2 days
R&D to streamline and improve efficiency of fulfillment centers and other projects (e.g. Amazon Grab & Go store) to lower costs

Key Resources

Shipping services
Warehouses and fulfillment centers
Servers for AWS and cloud services

Key Partners

Shipping companies such as UPS, FedEx, and DHL which provide shipping services for Amazon’s fulfillment process to ensure timely arrival of products
Major retail companies such as Nike, Best Buy, and Calvin Klein who want to increase their sales by selling on Amazon, consequently increasing Amazon’s market presence as well

Cost Structure

Cost-optimization strategy
Comparatively lower costs for managing and upkeeping AWS servers
Large investment and fixed costs from expanding Amazon Prime to international markets and building new fulfillment centers
Well scaled and efficient fulfillment center and process allows for optimized costs
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