This statistics highlight Amazon’s Revenue by Product Category from Q1 2016 onwards, split between AWS, online stores, Physical stores, subscription services, third-party services, and other product/services.
Amazon’s Revenue by Product Category
Amazon Inc. generated total revenue of $108.52 billion in 2021 Q1, from the following products and services:
- Amazon Web Services (or AWS)
- Online Stores
- Physical Stores
- Subscription Services
- Third-party seller services
This article gives a bifurcation of total revenue based on different products and services.
||YoY Growth in %
||Revenue Share in 2021 Q1
|Third-party seller services
(All figures in billions, except percentages)
- Amazon Web Services: Amazon Web Services (AWS) offers reliable, and cost-effective cloud computing services. It serves various start-ups, government agencies, and academic enterprises by providing on-demand technological services like compute, machine learning, database, analytics, storage, networking, mobile, development tools, enterprise applications, etc. Some of the major companies using AWS are Instagram, Zoopla, Pinterest, Netflix, Dropbox, Etsy, Talkbox, and Playfish. AWS contributed $13.5 billion that is 12% of total revenue in 2021 Q1. It grew by 32% year-over-year from $10.23 billion in 2020 Q1.
- Online Stores: Online Stores is an infrastructure created that offers a variety of durable as well as consumer goods. It also offers media products in physical as well as digital forms like books, video, games, music, and software. Revenue contribution from online Stores is the maximum of around 49% amounting to $52.9 billion in 2021 Q1. Revenue grew by 44% year-over-year from $36.65 billion in 2020 Q1.
- Physical stores: A physical store is a location where customers physically select the items. The customer has the option to order good online and get them delivered or can pick up directly from physical stores. Revenue from physical stores accounted for 4% (the least) in 2021 Q1. There has been a decline in year-over-year growth by 16% from $4.64 billion in 2020 Q1.
- Subscription services: Subscription services include monthly and annual fees charged on Amazon Prime memberships, digital videos, digital music, audiobook, e-books, and other non-AWS subscription services. Subscription fees are either paid at the time of delivery of service or paid as an advance by the customer. Such revenue is recognized by Amazon over the subscription period. Subscription services contributed around 7% of revenue amounting to $7.58 billion in 2021 Q1. It grew by 36% year-over-year from $5.56 billion in 2020 Q1.
- Third-party seller services: Third-party seller services is an arrangement where the seller sells their products using Amazon stores. Here amazon is not the seller of the product, it acts as a medium for sales. Here the items are shown as “sold by merchant” and fulfilled by either by merchant or Amazon. This helps merchants to keep control of price and payment terms. In third-party seller services, Amazon receives a commission as soon as the product is delivered to the customer. Third-party seller services contributed $23.71 billion that is 22% of revenue in 2021 Q1. It grew by 64% year-over-year from $14.48 billion in 2020 Q1.
- Other: Revenue from products or services which are not included in the above categories is included, for example, revenue from the sale of advertising services where the ads are shown based on the number of clicks or frequently visited items by users, revenue from sales of Alexa-enabled Echo devices, Kindle tablets, e-readers, etc. Revenue from other products or services accounted for 6% of total revenue in 2021 Q1 and has witnessed maximum growth by 77% from $3.91 billion in 2020 Q1.
Amazon.com, Inc. is a US-based company established in July 1994. Its corporate offices are located in Seattle, Washington. The founder of Amazon Inc. is Jeffrey P. Bezos. He is also the President, Chief Executive Officer, and Chairman of the Board of Amazon.
Amazon is regarded as a customer-centric company that works on 4 main principles of customer obsession, passion for invention, long-term vision, and operational excellence.
It started as an online bookshop and over the years has developed as an e-commerce giant that caters to the need of a wider segment which includes customers, sellers, content creators, developers, and enterprises. Customers can buy millions of unique products from dozens of category which include third-party products as well as products manufactured by Amazon like Kindle, Fire tablet, Fire TV, Echo, Ring, and other devices. In addition, Amazon also gives Amazon Prime membership which offers free shipping and access to unlimited streaming movies and TV episodes, including Amazon Original content. Its competitors include Walmart, Alibaba, eBay, Flipkart, The Home Depot, etc.
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