If my Twitter and LinkedIn feeds reflect the world in any way, it's widely believed that Amazon is still making little or no profit in "retail." It seems. It seems believed that the lucrative Amazon Web Services (AWS) division continues to support the company's remarkable e-commerce growth. For many years it was a fact. But there is no doubt that this is no longer the case. That theory, however, also points to the broader issue of "assessing Amazon's retail business against traditional retailer indicators." It's time to radically change your mind about Amazon. Unfortunately, due to the financial results reporting method used by Amazon, it is difficult to find out the relative profit contribution of each business area. But while AWS is certainly a huge, upbeat earner, it's highly likely that the North American retail sector is making a fair amount of money, based on a relatively simple segment analysis. As analysts such as Benedict Evans and Jason Goldberg have pointed out, it's the largest, fastest-growing, and most profitable Amazon retail business. The high price is the marketplace. In this business, Amazon has no inventory and is charged a huge commission for the nearly $ 400 billion in total distribution transaction (GMV) that the company helped sell. Third-party sales in the marketplace primarily use the same fulfillment network as first-party sales (that is, Amazon's sales that are closer to traditional retailers). Therefore, there is no way for an outsider to accurately identify what each rate of return is. However, sales commissions are increasing rapidly. And if it doesn't make a profit, it's unlikely that Amazon will leave this business area alone. The fact that there is no need to invest in inventories also has a significant positive effect on the return on investment.
