Amazon is the largest and most popular eCommerce platform in the world. Basically, Amazon.Com is an online eCommerce platform that sells various products including electronic items, books, cosmetics items, and household items, directly or works as a middle man between the retailers and Amazon.com’s millions of customers. In fact, Amazon.Com is an online retailer, B2B, as well as a C2C.
Key Takeaways
- Initially, Amazon.Com was an online book store but with years, it has become the world’s largest eCommerce platform
- Amazon sells all types of consumer products in North America, Asia, and Europe
- The current market value of Amazon is more than $1.5 trillion
- Amazon.Com is the world’s 5th most valuable company by market cap.
- In Amazon, you can sell products directly to a customer or another business
What Type Of Business Is Amazon?
Amazon is a multinational company that was founded on July 5, 1994, by Jeff Bezos. Initially, Amazon was an online book store but since its establishment, it has come a long way. Now Amazon has expanded and businesses, individual sellers, and manufacturers can sell almost everything including products, goods, services, etc. Moreover, from a retail company, Amazon has turned into a technology company because now Amazon deals with e-commerce as well as cloud computing, retail, and artificial intelligence.
Currently, Amazon is one of the largest retail companies with a value of more than $1.5 trillion. Moreover, it is also the world’s one of the most valuable public companies with shares trading around $3,150. Now Amazon sells all types of consumer products in North America, Asia, and Europe. Amazon is also involved in the field of consumer electronics and computer technology with Amazon Web Services. Amazon Web Services is a subsidiary of Amazon.Com. With all these, the important part of Amazon’s business is its retail website.
What Type Of Business Is Amazon Warehouse?
Amazon warehouse is a type of business that stores and ships products that people order through Amazon.Com. Amazon is an online eCommerce platform so it doesn’t have any physical stores. Therefore it requires the storehouse to process the online orders. Amazon has storehouses in many locations around the world and also in various states in the USA including New Jersey, Indiana, Kentucky, Tennessee, Texas, and California. So, Amazon warehouses are distribution centers that work as an intermediary between sellers and customers. When customers order a product from Amazon, Warehouse receives the product from the retailer and then packs and ships the product to the buyers.
Is Amazon A Retailer, B2B Or C2C?
Amazon is a multipurpose eCommerce business platform. It works as a retailer, B2B as well as a C2C. Amazon is a huge retailer company with massive value. This company has a market capitalization in excess of $1.620 Trillion U.S. which makes Amazon the world’s 5th most valuable company by market cap. Initially, Amazon was an online bookstore then it turned into an international retailer.
Amazon also works as a competitive B2B marketplace for businesses. In Amazon, businesses can sell various products and services to other companies. Currently, Amazon has more than one million customers therefore selling on business is a large source of income for various businesses including sellers, manufacturers, and distributors. Amazon also has various features like pricing, selection, and convenience that are designed for businesses of all sizes.
Amazon also works as a C2C business. In Amazon, people can sell goods directly to customers and allows users to sell goods themselves too. C2C stands for consumer-to-consumer commerce and in Amazon, one customer can sell products or services online to another customer. C2C is a very straightforward procedure to buy and sell products.
FAQs About What Type Of Business Is Amazon?
1. What Is Amazon’s Main Business?
There are many ways Amazon makes money. Usually, Amazon makes money through retail, subscriptions, and web services, etc. In fact, retail is Amazon’s main source of income. In recent years, Amazon Web Service (AWS) has become very popular and it is also contributing a lot to the revenue of Amazon.
2. What Is Amazon Considered?
Amazon is considered a large internet-based retail company that sells books, music, movies, housewares, electronics, toys, cosmetics, etc. Here, Amazon sells some of these products directly and sometimes works as a middleman between other retailers and customers.
3. Who Is Amazon’s Competitor?
Though Amazon is a huge retail company it also has some big competition. Some of the competitors of Amazon are Target, Walmart, Best Buy, and Costco. Amazon also provides subscription services and for subscription service, Amazon’s competitors are Netflix, Apple, and Google.
4. What Is The Main Purpose Of Amazon?
Amazon’s mission statement is to “serve consumers through online and physical stores and focus on selection, price, and convenience.” So, it is quite clear that Amazon wants to provide a hassle-free shopping experience for its consumers.
5. Who Is The Boss Of Amazon?
The current CEO of Amazon is Andy Jassy. He took over the position from Jeff Bezos on July 5, 2021.
6. Who Is Bigger Alibaba Or Amazon?
In terms of Share size, Amazon is bigger than Alibaba. Amazon has a market cap of $1.5 Trillion while Alibaba has only $640+ Billion. In terms of revenue, Amazon also outclasses Alibaba. Amazon had revenues of $126B from its last quarter while Alibaba had only $34B. So, it is quite clear that Amazon is bigger than Alibaba.
7. Does Jeff Bezos Own Amazon?
Jeff Bezos is the founder of Amazon and he is the biggest shareholder of Amazon. Currently, he owns a 10.3% stake in Amazon.
8. What Is Amazon’s Slogan?
Amazon’s slogan is “Work hard. Have fun”
9. What Are The Top 10 Stockholders Of Amazon?
The top 10 stockholders of Amazon are –
1. The Vanguard Group, Inc.
2. BlackRock Fund Advisors
3. SSgA Funds Management, Inc.
4. T. Rowe Price Associates, Inc.
5. Fidelity Management & Research Co.
6. Geode Capital Management LLC
7. Northern Trust Investments, Inc.
8. Norges Bank Investment Management
9. Capital Research & Management Co.
10. BlackRock Investment Management
10. Is Amazon A Retailer Or Distributor?
Amazon is a retailer, not a distributor. Initially, it was the largest bookstore in terms of sales and now it is the world’s one of the largest retail shops for various products and services.
11. What Type Of Business Is Amazon Involved In?
Amazon is involved in various types of businesses that include warehouses, packaging, shipping, and advertising, checkout services, etc. Moreover, Amazon is also involved in Cloud computing, digital distribution, self-driving cars, artificial intelligence, electronics entertainment, and many more.
References: 1 https://en.wikipedia.org/wiki/Amazon_(company)
References: 2 https://smallbusiness.chron.com/kind-commerce-amazon-63773.html
Last Updated on October 3, 2022 by Magalie D.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.
