Amazon was established in 1994. It started from selling books online and gradually became an e-commerce retail platform. The current business of Amazon includes:retail business (both online e-commerce and offline physical stores), hardware production, A complete ecosystem of coordinated development of cloud computing services, content production and logistics services, cloud computing, and the Internet of Things. Amazon has become an influential Internet technology company in the United States and the world. Currently Amazon’s market value is as high as $1.6 trillion, besides Apple, it is the second company with a market value of more than one trillion dollars. Why can the market value of Amazon exceed one trillion US dollars?

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In order to Everyone has a more intuitive understanding of why Amazon is so valuable. We start from its 6 major business segments Let’s analyze it for everyone:

1. Amazon’s e-commerce and logistics business

Everyone knows that Amazon sells online The book started and acquired a large number of users through low prices, and gradually gained market share in the US retail market. Since then, Amazon has continuously expanded its product categories to become an online e-commerce platform. At the same time, Amazon extended the creation of a third-party seller’s platform Marketplace, which made its products richer to gain a steady stream of users and traffic.

At the same time as the business develops, Amazon has created a There is a logistics system to improve user experience. At present, Amazon has established 14 major sites around the world and more than 100 global operation centers. From the global distribution of Amazon storage area and number of storage, the current Amazon has entered 21 countries around the world.

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Second, private brand business

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Amazon’s first own hardware product Kindle was launched in 2007 and opened AmazonThe development path of the company’s own brand. As a retailer, the purpose of launching its own brand is to increase the repurchase rate and gross profit margin, and subsequently launched its own brands of different categories. Currently Amazon‘s mainstream private brands include the following:AmazonBasics, Echo, Fire TV, Kindle, Amazon Elements, which are mainly distributed in fast-moving consumer goods, electronic products, personal care and other fields. The development of its own brand has contributed profits to the e-commerce business of Amazon and has also built a competitive advantage.

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3. Amazon lays out new retail, actively Promote online and offline integration

As you all know, new retail is our ChinaAlibaba’s Jack Ma proposed in 2016, and then Internet giants such as Alibaba and Tencent Started to lay out new retail. At the same time, offline retail and various brands began to pay attention to new retail business. In the United States, Amazon is actually deploying new retail business and promoting online and offline integration.

1, Amazon launches Amazon Go Open without Human retail model

First Amazon is established Several Amazon Go offline unmanned retail stores have used technology to change the retail industry. Amazon Go uses facial recognition technology to confirm the identity of the customer, and finally transmits the data to the settlement system. The customer leaves the store after purchasing, and the system directly obtains the user’s Amazon account deduction, realizing immediate withdrawal. The problem of offline cashier queuing is solved through technical means, and the customer’s shopping experience is improved. The improvement of this way of user experience relies on the powerful AI technology of Amazon and Amazon cloud technology provides support for data transmission.

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2, Amazonacquires offline physical retail


2017Amazon acquired the supermarket chain Whole Foods and began to move towards offline physical retail. Amazon puts the acquired Whole Foods’ own brand online. After online users can learn about it through the online platform, Then go to the offline physical store to buy. At the same time, starting in 2018, Amazon began to use Whole Foods offline physical stores as warehouses, trying to promote the two-hour delivery service. Place an online order and receive the fresh products you purchase within two hours. During the 2020 epidemic, Amazon also carried out its delivery business through offline outlets.

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Four. Amazon‘s financial business


Amazon started to deploy financial services business in 2007, Amazon’s financial development mainly revolves around its e-commerce business, focusing on further increasing user stickiness and activity, and reducing user transaction costs. In addition to its in-depth focus in the payment field, Amazon is also involved in cash, credit, insurance, and mortgage loans. At present, payment, The three pillars of cash and credit businesses are the main business, and the system is constantly expanding new businesses. At the same time, financial services have become an important part of the Amazon ecosystem Link.

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5. Amazon‘s cloud computing business AWS

Amazon officially launched the Amazon cloud computing service in 2006 ( AWS) is also one of the earliest companies to provide cloud computing services. Initially AWS was used for storage and computing resources of Amazon’s own online shopping platform, and then gradually put the system idle as the business developed Resources are packaged and sold to enterprises. AWS revenue has grown rapidly since 2010. With the steady increase in the proportion of AWS revenue, it contributed more than half of the operating profit, becoming Amazon Star business.

Currently Amazon’s AWS business covers 18 regions around the world , The number of available zones has reached 55. Amazon‘s AWS global cloud server market share has reached 51%, becoming the world’s largest cloud server operation Quotient.

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VI. Amazon’s Internet of Things business

Amazon as the world’s largest cloud The service provider, while keeping the cloud market share far ahead, launched an AWS-based IoT platform in October 2015, named AWS IoT. AWS IoT is a service platform, which is Amazon opens up new business growth points outside the cloud market, Amazon‘s inherent advantages in the cloud market will become a booster for the vigorous development of the AWS IoT industry in the future.

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via AmazonIt can be seen from the six major business sectors that Amazon has become the largest digital business empire in the United States. Like our China Alibaba and Jingdong, actually currently Alibaba plus JD’s market capitalization is not as good as Amazon. At the same time, the flywheel effect of Amazon allows it to continuously expand from e-commerce business to logistics business to cloud computing and the future Internet of Things. To build a moat of their own company to form a huge digital business empire, and at the same time become a business ecological company, so it is understandable that such a company has a market value of more than one trillion US dollars.

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