Amazon (company)

Last updated

Amazon.com, Inc.
Amazon
Formerly
Cadabra, Inc. (1994–95)
Public
Traded as
ISIN US0231351067
Industry
FoundedJuly 5, 1994;25 years ago (1994-07-05) in Bellevue, Washington, United States
Founder Jeff Bezos
Headquarters,
Area served
Worldwide
Key people
Products
Services
RevenueIncrease2.svg US$232.887 billion (2018)
Increase2.svgUS$12.421 billion (2018)
Increase2.svgUS$10.073 billion (2018)
Total assets Decrease2.svgUS$162.648 billion (2018)
Total equity Decrease2.svgUS$43.549 billion (2018)
Number of employees
Increase2.svg 647,500 (2018)
Subsidiaries
Website www.amazon.com
Footnotes /references
[1] [2] [3] [4] [5]

Amazon.com, Inc. [6] ( /ˈæməzɒn/ ), is an American multinational technology company based in Seattle, Washington, that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is considered one of the Big Four technology companies along with Google, Apple, and Facebook. [7] [8] [9]

Seattle City in Washington, United States

Seattle is a seaport city on the West Coast of the United States. It is the seat of King County, Washington. With an estimated 744,955 residents as of 2018, Seattle is the largest city in both the state of Washington and the Pacific Northwest region of North America. According to U.S. Census data released in 2018, the Seattle metropolitan area's population stands at 3.94 million, and ranks as the 15th largest in the United States. In July 2013, it was the fastest-growing major city in the United States and remained in the top 5 in May 2015 with an annual growth rate of 2.1%. In July 2016, Seattle was again the fastest-growing major U.S. city, with a 3.1% annual growth rate. Seattle is the northernmost large city in the United States.

E-commerce is the activity of buying or selling of products on online services or over the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.

Cloud computing Form of Internet-based computing that provides shared computer processing resources and data to computers and other devices on demand

Cloud computing is the on-demand availability of computer system resources, especially data storage and computing power, without direct active management by the user. The term is generally used to describe data centers available to many users over the Internet. Large clouds, predominant today, often have functions distributed over multiple locations from central servers. If the connection to the user is relatively close, it may be designated an edge server.

Contents

Amazon is known for its disruption of well-established industries through technological innovation and mass scale. [10] [11] [12] It is the world's largest e-commerce marketplace, AI assistant provider, and cloud computing platform [13] as measured by revenue and market capitalization. [14] Amazon is the largest Internet company by revenue in the world. [15] It is the second largest private employer in the United States [16] and one of the world's most valuable companies. Amazon is the second largest technology company by revenue.

An online marketplace is a type of e-commerce site where product or service information is provided by multiple third parties, whereas transactions are processed by the marketplace operator. Online marketplaces are the primary type of multichannel ecommerce and can be a way to streamline the production process.

Revenue income that a business has from its normal business activities

In accounting, revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover. Some companies receive revenue from interest, royalties, or other fees. Revenue may refer to business income in general, or it may refer to the amount, in a monetary unit, earned during a period of time, as in "Last year, Company X had revenue of $42 million". Profits or net income generally imply total revenue minus total expenses in a given period. In accounting, in the balance statement it is a subsection of the Equity section and revenue increases equity, it is often referred to as the "top line" due to its position on the income statement at the very top. This is to be contrasted with the "bottom line" which denotes net income.

Market capitalization Total value of a public companys outstanding shares

Market capitalization, commonly called market cap, is the market value of a publicly traded company's outstanding shares.

Amazon was founded by Jeff Bezos on July 5, 1994, in Bellevue, Washington. The company initially started as an online marketplace for books but later expanded to sell electronics, software, video games, apparel, furniture, food, toys, and jewelry. In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalization. [17] In 2017, Amazon acquired Whole Foods Market for $13.4 billion, which vastly increased Amazon's presence as a brick-and-mortar retailer. [18] In 2018, Bezos announced that its two-day delivery service, Amazon Prime, had surpassed 100 million subscribers worldwide. [19] [20]

Jeff Bezos American entrepreneur, founder and CEO of Amazon.com, Inc.

Jeffrey Preston Bezos is an American technology entrepreneur, investor, and charity donor. He is the founder, CEO, and president of Amazon.com, Inc.

Bellevue, Washington City in Washington, United States

Bellevue is a city in the Eastside region of King County, Washington, United States, across Lake Washington from Seattle. As the third-largest city in the Seattle metropolitan area, Bellevue has variously been characterized as an edge city, a suburb, boomburb, or satellite city. Its population was 122,363 at the 2010 census and 147,599 in a 2018 census estimate.

Walmart U.S.-based multinational discount retailer based in Arkansas

Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, headquartered in Bentonville, Arkansas. The company was founded by Sam Walton in 1962 and incorporated on October 31, 1969. It also owns and operates Sam's Club retail warehouses. As of July 31, 2019, Walmart has 11,389 stores and clubs in 27 countries, operating under 55 different names. The company operates under the name Walmart in the United States and Canada, as Walmart de México y Centroamérica in Mexico and Central America, as Asda in the United Kingdom, as the Seiyu Group in Japan, and as Best Price in India. It has wholly owned operations in Argentina, Chile, Canada, and South Africa. Since August 2018, Walmart only holds a minority stake in Walmart Brasil, which was renamed Grupo Big in August 2019, with 20 percent of the company's shares, and private equity firm Advent International holding 80 percent ownership of the company.

Amazon distributes downloads and streaming of video, music, audiobook through its Amazon Prime Video, Amazon Music, and Audible subsidiaries. Amazon also has a publishing arm, Amazon Publishing, a film and television studio, Amazon Studios, and a cloud computing subsidiary, Amazon Web Services. It produces consumer electronics including Kindle e-readers, Fire tablets, Fire TV, and Echo devices. In addition, Amazon subsidiaries include Ring, Twitch.tv, Whole Foods Market, and IMDb. Among various controversies, the company has been criticized for technological surveillance overreach, [21] a hyper-competitive and demanding work culture, [22] tax avoidance, [23] and anti-competitive practices. [24]

Prime Video, also marketed as Amazon Prime Video, is an American Internet video on demand service that is developed, owned, and operated by Amazon. It offers television shows and films for rent or purchase and Prime Video, a selection of Amazon Studios original content and licensed acquisitions included in the Amazon's Prime subscription. In the UK, US, Germany, Sweden, and Austria, access to Prime Video is also available through a video-only membership, which does not require a full Prime subscription. In France and Italy, Rent or Buy and Prime Video are not available on the Amazon website and Prime Video content is only accessible through a dedicated website. In some countries Prime Video additionally offers Amazon Channels, which allows viewers to subscribe to other suppliers' content, including HBO in the United States.

Amazon Music Amazon.coms online music store

Amazon Music is a music streaming platform and online music store operated by Amazon.com. Launched in public beta on September 25, 2007, in January 2008 it became the first music store to sell music without digital rights management (DRM) from the four major music labels, as well as many independents. All tracks were originally sold in 256 kilobits-per-second variable bitrate MP3 format without per-customer watermarking or DRM; however, some tracks are now watermarked. Licensing agreements with recording companies restrict the countries in which the music can be sold.

Audible (store) Amazon-owned seller and producer of spoken online audio content

Audible is a seller and producer of spoken audio entertainment, information, and educational programming on the Internet. Audible sells digital audiobooks, radio and TV programs, and audio versions of magazines and newspapers. Through its production arm, Audible Studios, Audible has also become the world's largest producer of downloadable audiobooks. Audible's content is only accessible through special proprietary closed software, including unauthorized-playback prevention by means of an Amazon account.

History

In 1994, Jeff Bezos incorporated Amazon. He chose the location Seattle because of technical talent as Microsoft is located there. [25] In May 1997, the organization went public. The company began selling music and videos in 1998, at which time it began operations internationally by acquiring online sellers of books in United Kingdom and Germany. The following year, the organization also sold video games, consumer electronics, home-improvement items, software, games, and toys in addition to other items.

Public company Company that offers its securities for sale to the general public

A public company, publicly traded company, publicly held company, publicly listed company, or public limited company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public company can be listed on a stock exchange, which facilitates the trade of shares, or not. In some jurisdictions, public companies over a certain size must be listed on an exchange.

United Kingdom Country in Europe

The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a sovereign country located off the north-western coast of the European mainland. The United Kingdom includes the island of Great Britain, the north-eastern part of the island of Ireland, and many smaller islands. Northern Ireland is the only part of the United Kingdom that shares a land border with another sovereign state, the Republic of Ireland. Apart from this land border, the United Kingdom is surrounded by the Atlantic Ocean, with the North Sea to the east, the English Channel to the south and the Celtic Sea to the south-west, giving it the 12th-longest coastline in the world. The Irish Sea separates Great Britain and Ireland. The United Kingdom's 242,500 square kilometres (93,600 sq mi) were home to an estimated 66.0 million inhabitants in 2017.

Germany Federal parliamentary republic in central-western Europe

Germany, officially the Federal Republic of Germany, is a country in Central and Western Europe, lying between the Baltic and North Seas to the north and the Alps, Lake Constance and the High Rhine to the south. It borders Denmark to the north, Poland and the Czech Republic to the east, Austria and Switzerland to the south, France to the southwest, and Luxembourg, Belgium and the Netherlands to the west.

In 2002, the corporation started Amazon Web Services (AWS), which provided data on Web site popularity, Internet traffic patterns and other statistics for marketers and developers. In 2006, the organization grew its AWS portfolio when Elastic Compute Cloud (EC2), which rents computer processing power as well as Simple Storage Service (S3), that rents data storage via the Internet, were made available. That same year, the company started Fulfillment by Amazon which managed the inventory of individuals and small companies selling their belongings through the company internet site. In 2012, Amazon bought Kiva Systems to automate its inventory-management business, purchasing Whole Foods Market supermarket chain five years later in 2017. [26]

Amazon Web Services On-demand cloud computing company

Amazon Web Services (AWS) is a subsidiary of Amazon that provides on-demand cloud computing platforms to individuals, companies, and governments, on a metered pay-as-you-go basis. In aggregate, these cloud computing web services provide a set of primitive abstract technical infrastructure and distributed computing building blocks and tools. One of these services is Amazon Elastic Compute Cloud, which allows users to have at their disposal a virtual cluster of computers, available all the time, through the Internet. AWS's version of virtual computers emulate most of the attributes of a real computer including, hardware central processing units (CPUs) and graphics processing units (GPUs) for processing, local/RAM memory, hard-disk/SSD storage; a choice of operating systems; networking; and pre-loaded application software such as web servers, databases, customer relationship management (CRM), etc.

Amazon Elastic Compute Cloud software

Amazon Elastic Compute Cloud (EC2) forms a central part of Amazon.com's cloud-computing platform, Amazon Web Services (AWS), by allowing users to rent virtual computers on which to run their own computer applications. EC2 encourages scalable deployment of applications by providing a web service through which a user can boot an Amazon Machine Image (AMI) to configure a virtual machine, which Amazon calls an "instance", containing any software desired. A user can create, launch, and terminate server-instances as needed, paying by the second for active servers – hence the term "elastic". EC2 provides users with control over the geographical location of instances that allows for latency optimization and high levels of redundancy.

Amazon Robotics, formerly Kiva Systems, is a Massachusetts-based company that manufactures mobile robotic fulfilment systems. It is a subsidiary company of Amazon.com and its automated storage and retrieval systems were previously used by companies including: The Gap, Walgreens, Staples, Gilt Groupe, Office Depot, Crate & Barrel, and Saks 5th Avenue. After those contracts ran out, Amazon did not renew them and Kiva's assets now work only for Amazon's warehouses.

Board of directors

Amazon founder Jeff Bezos in 2016 Jeff Bezos 2016.jpg
Amazon founder Jeff Bezos in 2016

As of March 2019, the board of directors is: [27]

Merchant partnerships

In 2000, U.S. toy retailer Toys "R" Us entered into a 10-year agreement with Amazon, valued at $50 million per year plus a cut of sales, under which Toys "R" Us would be the exclusive supplier of toys and baby products on the service, and the chain's website would redirect to Amazon's Toys & Games category. In 2004, Toys "R" Us sued Amazon, claiming that because of a perceived lack of variety in Toys "R" Us stock, Amazon had knowingly allowed third-party sellers to offer items on the service in categories that Toys "R" Us had been granted exclusivity. In 2006, a court ruled in favor of Toys "R" Us, giving it the right to unwind its agreement with Amazon and establish its own independent e-commerce website. The company was later awarded $51 million in damages. [28] [29] [30]

In 2001, Amazon entered into a similar agreement with Borders Group, under which Amazon would co-manage Borders.com as a co-branded service, [31] Borders pulled out of the arrangement in 2007, with plans to also launch its own online store. [32]

On October 18, 2011, Amazon.com announced a partnership with DC Comics for the exclusive digital rights to many popular comics, including Superman , Batman , Green Lantern , The Sandman, and Watchmen . The partnership has caused well-known bookstores like Barnes & Noble to remove these titles from their shelves. [33]

In November 2013, Amazon announced a partnership with the United States Postal Service to begin delivering orders on Sundays. The service, included in Amazon's standard shipping rates, initiated in metropolitan areas of Los Angeles and New York because of the high-volume and inability to deliver in a timely way, with plans to expand into Dallas, Houston, New Orleans and Phoenix by 2014. [34]

In June 2017, Nike confirmed a "pilot" partnership with Amazon to sell goods directly on the platform. [35] [36] [37]

As of October 11,2017, AmazonFresh sold a range of Booths branded products for home delivery in selected areas. [38]

In September 2017, Amazon ventured with one of its sellers JV Appario Retail owned by Patni Group which has recorded a total income of US$104.44million ( 759 crore) in financial year 2017–18. [39]

In November 2018, Amazon reached an agreement with Apple Inc. to sell selected products through the service, via the company and selected Apple Authorized Resellers. As a result of this partnership, only Apple Authorized Resellers may sell Apple products on Amazon effective January 4, 2019. [40] [41]

Products and services

Amazon.com's product lines available at its website include several media (books, DVDs, music CDs, videotapes and software), apparel, baby products, consumer electronics, beauty products, gourmet food, groceries, health and personal-care items, industrial & scientific supplies, kitchen items, jewelry, watches, lawn and garden items, musical instruments, sporting goods, tools, automotive items and toys & games.[ citation needed ] In August 2019, Amazon applied to have a liquor store in San Francisco, CA as a means to ship beer and alcohol within the city. [42] Amazon has separate retail websites for some countries and also offers international shipping of some of its products to certain other countries. [43]

Amazon.com has a number of products and services available, including:

Subsidiaries

Amazon owns over 40 subsidiaries, including Zappos, Shopbop, Diapers.com, Kiva Systems (now Amazon Robotics), Audible, Goodreads, Teachstreet, Twitch and IMDb. [44]

A9.com

A9.com, a company focused on researching and building innovative technology, has been a subsidiary since 2003. [45]

Amazon Maritime

Amazon Maritime, Inc. holds a Federal Maritime Commission license to operate as a non-vessel-owning common carrier (NVOCC), which enables the company to manage its own shipments from China into the United States. [46]

Audible.com

Audible.com is a seller and producer of spoken audio entertainment, information and educational programming on the Internet. Audible sells digital audiobooks, radio and TV programs and audio versions of magazines and newspapers. Through its production arm, Audible Studios, Audible has also become the world's largest producer of downloadable audiobooks. On January 31, 2008, Amazon announced it would buy Audible for about $300 million. The deal closed in March 2008 and Audible became a subsidiary of Amazon. [47]

Beijing Century Joyo Courier Services

Amazon 40' container turnpike double, a long combination vehicle Amazon container trucks.jpeg
Amazon 40' container turnpike double, a long combination vehicle

Beijing Century Joyo Courier Services is a subsidiary of Amazon and it applied for a freight forwarding license with the US Maritime Commission. Amazon is also building out its logistics in trucking and air freight to potentially compete with UPS and FedEx. [48] [49]

Brilliance Audio

Brilliance Audio is an audiobook publisher founded in 1984 by Michael Snodgrass in Grand Haven, Michigan. [50] The company produced its first 8 audio titles in 1985. [50] The company was purchased by Amazon in 2007 for an undisclosed amount. [51] [52] At the time of the acquisition, Brilliance was producing 12–15 new titles a month. [52] It operates as an independent company within Amazon.

In 1984, Brilliance Audio invented a technique for recording twice as much on the same cassette. [53] The technique involved recording on each of the two channels of each stereo track. [53] It has been credited with revolutionizing the burgeoning audiobook market in the mid-1980s since it made unabridged books affordable. [53]

ComiXology

ComiXology is a cloud-based digital comics platform with over 200 million comic downloads as of September 2013. It offers a selection of more than 40,000 comic books and graphic novels across Android, iOS, Fire OS and Windows 8 devices and over a web browser. Amazon bought the company in April 2014. [54]

CreateSpace

CreateSpace, which offers self-publishing services for independent content creators, publishers, film studios, and music labels, became a subsidiary in 2009. [55] [56]

Eero

Eero is a company that manufactures mesh-capable routers. The company was founded in 2015 and is based in San Francisco. Amazon announced it would buy Eero in 2019.

Goodreads

Goodreads is a "social cataloging" website founded in December 2006 and launched in January 2007 by Otis Chandler, a software engineer, and entrepreneur, and Elizabeth Chandler. The website allows individuals to freely search Goodreads' extensive user-populated database of books, annotations, and reviews. Users can sign up and register books to generate library catalogs and reading lists. They can also create their own groups of book suggestions and discussions. In December 2007, the site had over 650,000 members and over 10 million books had been added. Amazon bought the company in March 2013. [57]

Lab126

Lab126, developers of integrated consumer electronics such as the Kindle became a subsidiary in 2004. [58]

Kuiper Systems

Amazon announced that they would fund and deploy a large broadband satellite internet constellation called "Project Kuiper" in April 2019. [59] [60] It is expected to take up to a decade to fully deploy all 3,236 satellites planned for the full constellation in order to provide internet to "tens of millions of people who lack basic access to broadband internet." [59] Amazon has not announced if they intend to sell broadband service directly to consumers, but they will "offer broadband service through partnerships with other companies." [61]

The satellites will use an orbit with a height between 590 and 630 km (370 and 390 mi). [62] Kuiper will work in concert with Amazon's previously announced large network of 12 satellite ground station facilities (the "AWS Ground Station unit") announced in November 2018. [63] Amazon filed communications license documents with the U.S. regulatory authorities the FCC in July 2019, which included information that the wholly owned Amazon subsidiary that intended to deploy the satellite constellation was Kuiper Systems LLC, based in Seattle, Washington. [64] The Kuiper System will consist of 3,236 satellites operating in 98 orbital planes in three orbital shells, one each at 590 kilometers (370 mi), 610 km (380 mi), and 630 km (390 mi) orbital altitude. [65] The Kuiper System includes high-performance satellites, terrestrial gateways, internetworking technologies, and a range of customer terminals." [64]

The president of Kuiper Systems is Rajeev Badyal, a former vice president of SpaceX satellite internet constellation business unit. [61]

Ring

Ring is a home automation company founded by Jamie Siminoff in 2013. It is primarily known for its WiFi powered smart doorbells, but manufactures other devices such as security cameras. Amazon bought Ring for $1 billion USD in 2018. [66]

Shelfari

Shelfari was a social cataloging website for books. Shelfari users built virtual bookshelves of the titles which they owned or had read and they could rate, review, tag and discuss their books. Users could also create groups that other members could join, create discussions and talk about books, or other topics. Recommendations could be sent to friends on the site for what books to read. Amazon bought the company in August 2008. [57] Shelfari continued to function as an independent book social network within the Amazon until January 2016, when Amazon announced that it would be merging Shelfari with Goodreads and closing down Shelfari. [67] [68]

Souq

Souq.com is the largest e-commerce platform in the Middle East based in Dubai, United Arab Emirates. On March 28, 2017, Amazon confirmed it would be acquiring Souq.com for $580 million. [69] Souq.com is now a subsidiary of Amazon, and acts as Amazon's arm into the Middle East region.

Twitch

Twitch.tv at the Electronic Entertainment Expo. E3 - 2014 (23113432796).jpg
Twitch.tv at the Electronic Entertainment Expo.

Twitch is a live streaming platform for video, primarily oriented towards video gaming content. The service was first established as a spin-off of a general-interest streaming service known as Justin.tv. Its prominence was eclipsed by that of Twitch, and Justin.tv was eventually shut down by its parent company in August 2014 in order to focus exclusively on Twitch. [70] Later that month, Twitch was acquired by Amazon for $970 million. [71] Through Twitch, Amazon also owns Curse, Inc., an operator of video gaming communities and a provider of VoIP services for gaming. [72] Since the acquisition, Twitch began to sell games directly through the platform, [73] and began offering special features for Amazon Prime subscribers. [74]

The site's rapid growth had been boosted primarily by the prominence of major esports competitions on the service, leading GameSpot senior esports editor Rod Breslau to have described the service as "the ESPN of esports". [75] As of 2015, the service had over 1.5 million broadcasters and 100 million monthly viewers. [76]

Whole Foods Market

Whole Foods Market store in Ann Arbor, Michigan. Whole Foods Market Cranbrook Village Ann Arbor Michigan.JPG
Whole Foods Market store in Ann Arbor, Michigan.

Whole Foods Market is an American supermarket chain exclusively featuring foods without artificial preservatives, colors, flavors, sweeteners, and hydrogenated fats. [77]

On August 23, 2017, it was reported that the Federal Trade Commission approved the merger between Amazon.com and Whole Foods Market. [78] The following day it was announced that the deal would be closed on August 28, 2017. [79]

Junglee

Junglee is a former online shopping service provided by Amazon that enabled customers to search for products from online and offline retailers in India. Junglee started off as a virtual database that was used to extract information off the internet and deliver it to enterprise applications. As it progressed, Junglee started to use its database technology to create a single window marketplace on the internet by making every item from every supplier available for purchase. Web shoppers could locate, compare and transact millions of products from across the Internet shopping mall through one window. [80]

Amazon acquired Junglee in 1998, and the website Junglee.com was launched in India in February 2012 [81] as a comparison-shopping website. It curated and enabled searching for a diverse variety of products such as clothing, electronics, toys, jewelry and video games, among others, across thousands of online and offline sellers. Millions of products are browse-able, whereby the client selects a price, and then they are directed to a seller. In November 2017, Amazon closed down Junglee.com and the former domain currently redirects to Amazon India. [82]

Supply chain

Amazon first launched its distribution network in 1997 with two fulfillment centers in Seattle and New Castle, Delaware. Amazon has several types of distribution facilities consisting of crossdock centers, fulfillment centers, sortation centers, delivery stations, Prime now hubs, and Prime air hubs. There are 75 fulfillment centers and 25 sortation centers with over 125,000 employees. [83] [84] Employees are responsible for five basic tasks: unpacking and inspecting incoming goods; placing goods in storage and recording their location; picking goods from their computer recorded locations to make up an individual shipment; sorting and packing orders; and shipping. A computer that records the location of goods and maps out routes for pickers plays a key role: employees carry hand-held computers which communicate with the central computer and monitor their rate of progress.

Website

Amazon.com
Amazon.com-Logo.svg
Screenshot
Amazon.com screenshot.jpeg
amazon.com homepage
Type of site
E-commerce
Available in
  • Arabic
  • English
  • French
  • German
  • Spanish
  • Italian
  • Chinese
  • Japanese
  • Portuguese
  • Dutch
  • Turkish
OwnerAmazon.com
Website amazon.com (original U.S. site)
Alexa rankDecrease Positive.svg 10 (Global, January 2018)
CommercialYes
RegistrationOptional
Launched1995
Current statusOnline
Written in C++ and Java
[85] [86]

The domain amazon.com attracted at least 615 million visitors annually by 2008. [87] Amazon attracts over 130 million customers to its US website per month by the start of 2016. [88] The company has also invested heavily on a massive amount of server capacity for its website, especially to handle the excessive traffic during the December Christmas holiday season. [89]

Results generated by Amazon's search engine are partly determined by promotional fees. [90]

Amazon's localized storefronts, which differ in selection and prices, are differentiated by top-level domain and country code:

RegionCountry Domain name Since
AsiaChinaamazon.cn September 2004
Indiaamazon.in June 2013
Japanamazon.co.jp November 2000
Singaporeamazon.com.sg July 2017
Turkeyamazon.com.tr September 2018
United Arab Emiratesamazon.ae May 2019
EuropeFranceamazon.fr August 2000
Germanyamazon.de October 1998
Italyamazon.it November 2010
Netherlandsamazon.nl November 2014
Spainamazon.es September 2011
United Kingdomamazon.co.uk October 1998
North AmericaCanadaamazon.ca June 2002
Mexicoamazon.com.mx August 2013
United Statesamazon.com July 1995
OceaniaAustraliaamazon.com.au November 2017
South AmericaBrazilamazon.com.br December 2012

Reviews

Amazon allows users to submit reviews to the web page of each product. Reviewers must rate the product on a rating scale from one to five stars. Amazon provides a badging option for reviewers which indicate the real name of the reviewer (based on confirmation of a credit card account) or which indicate that the reviewer is one of the top reviewers by popularity. Customers may comment or vote on the reviews, indicating whether they found a review helpful to them. If a review is given enough "helpful" hits, it appears on the front page of the product. In 2010, Amazon was reported as being the largest single source of Internet consumer reviews. [91]

When publishers asked Bezos why Amazon would publish negative reviews, he defended the practice by claiming that Amazon.com was "taking a different approach ... we want to make every book available—the good, the bad and the ugly ... to let truth loose". [92]

There have been cases of positive reviews being written and posted by public relations companies on behalf of their clients [93] and instances of writers using pseudonyms to leave negative reviews of their rivals' works.

"Search Inside the Book" is a feature which allows customers to search for keywords in the full text of many books in the catalog. [94] [95] The feature started with 120,000 titles (or 33 million pages of text) on October 23, 2003. [96] There are about 300,000 books in the program. Amazon has cooperated with around 130 publishers to allow users to perform these searches.[ citation needed ]

To avoid copyright violations, Amazon does not return the computer-readable text of the book. Instead, it returns a picture of the matching page, instructs the web browser to disable printing and puts limits on the number of pages in a book a single user can access. Additionally, customers can purchase online access to some of the same books via the "Amazon Upgrade" program.[ citation needed ]

Third-party sellers

Amazon derives many of its sales (around 40% in 2008) from third-party sellers who sell products on Amazon. [97] Associates receive a commission for referring customers to Amazon by placing links to Amazon on their websites if the referral results in a sale. Worldwide, Amazon has "over 900,000 members" in its affiliate programs. [98] In the middle of 2014, the Amazon Affiliate Program is used by 1.2% of all websites and it is the second most popular advertising network after Google Ads. [99] It is frequently used by websites and non-profits to provide a way for supporters to earn them a commission. [100] Amazon reported over 1.3 million sellers sold products through Amazon's websites in 2007. Unlike eBay, Amazon sellers do not have to maintain separate payment accounts; all payments are handled by Amazon.[ citation needed ]

Associates can access the Amazon catalog directly on their websites by using the Amazon Web Services (AWS) XML service. A new affiliate product, aStore, allows Associates to embed a subset of Amazon products within another website, or linked to another website. In June 2010, Amazon Seller Product Suggestions was launched (rumored to be internally called "Project Genesis") to provide more transparency to sellers by recommending specific products to third-party sellers to sell on Amazon. Products suggested are based on customers' browsing history. [101]

Amazon sales rank

The Amazon sales rank (ASR) provides an indication of the popularity of a product sold on any Amazon locale. It is a relative indicator of popularity that is updated hourly. Effectively, it is a "best sellers list" for the millions of products stocked by Amazon. [102] While the ASR has no direct effect on the sales of a product, it is used by Amazon to determine which products to include in its bestsellers lists. [102] Products that appear in these lists enjoy additional exposure on the Amazon website and this may lead to an increase in sales. In particular, products that experience large jumps (up or down) in their sales ranks may be included within Amazon's lists of "movers and shakers"; such a listing provides additional exposure that might lead to an increase in sales. [103] For competitive reasons, Amazon does not release actual sales figures to the public. However, Amazon has now begun to release point of sale data via the Nielsen BookScan service to verified authors. [104] While the ASR has been the source of much speculation by publishers, manufacturers, and marketers, Amazon itself does not release the details of its sales rank calculation algorithm. Some companies have analyzed Amazon sales data to generate sales estimates based on the ASR, [105] though Amazon states:

Please keep in mind that our sales rank figures are simply meant to be a guide of general interest for the customer and not definitive sales information for publishers—we assume you have this information regularly from your distribution sources

Amazon.com Help [106]

Multi-level sales strategy

Amazon employs a multi-level e-commerce strategy. Amazon started by focusing on business-to-consumer relationships between itself and its customers and business-to-business relationships between itself and its suppliers and then moved to facilitate customer-to-customer with the Amazon marketplace which acts as an intermediary to facilitate transactions. The company lets anyone sell nearly anything using its platform. In addition to an affiliate program that lets anyone post-Amazon links and earn a commission on click-through sales, there is now a program which lets those affiliates build entire websites based on Amazon's platform. [107]

Some other large e-commerce sellers use Amazon to sell their products in addition to selling them through their own websites. The sales are processed through Amazon.com and end up at individual sellers for processing and order fulfillment and Amazon leases space for these retailers. Small sellers of used and new goods go to Amazon Marketplace to offer goods at a fixed price. [108]

Amazon also employs the use of drop shippers or meta sellers. These are members or entities that advertise goods on Amazon who order these goods direct from other competing websites but usually from other Amazon members. These meta sellers may have millions of products listed, have large transaction numbers and are grouped alongside other less prolific members giving them credibility as just someone who has been in business for a long time. Markup is anywhere from 50% to 100% and sometimes more, these sellers maintain that items are in stock when the opposite is true. As Amazon increases their dominance in the marketplace these drop shippers have become more and more commonplace in recent years.[ citation needed ]

In November 2015, Amazon opened a physical Amazon Books store in University Village in Seattle. The store is 5,500 square feet and prices for all products match those on its website. [109] Amazon will open its tenth physical book store in 2017; [110] media speculation suggests Amazon plans to eventually roll out 300 to 400 bookstores around the country. [109]

Amazon plans to open brick and mortar bookstores in Germany. [111]

Finances

Amazon.com is primarily a retail site with a sales revenue model; Amazon takes a small percentage of the sale price of each item that is sold through its website while also allowing companies to advertise their products by paying to be listed as featured products. [112] As of 2018, Amazon.com is ranked 8th on the Fortune 500 rankings of the largest United States corporations by total revenue. [113]

For the fiscal year 2018, Amazon reported earnings of US$10.07 billion, with an annual revenue of US$232.887 billion, an increase of 30.9% over the previous fiscal cycle. Since 2007 sales increased from 14.835 billion to 232.887 billion, thanks to continued business expansion. [114] Amazon's market capitalization was valued at over US$803 billion in early November 2018. [115]

YearRevenue
in mil. USD$
Net income
in mil. USD$
Total Assets
in mil. USD$
Employees
2007 [116] 14,8354766,48517,000
2008 [117] 19,1666458,31420,700
2009 [118] 24,50990213,81324,300
2010 [119] 34,2041,15218,79733,700
2011 [120] 48,07763125,27856,200
2012 [121] 61,093−3932,55588,400
2013 [122] 74,45227440,159117,300
2014 [123] 88,988−24154,505154,100
2015 [124] 107,00659664,747230,800
2016 [125] 135,9872,37183,402341,400
2017 [126] 177,8663,033131,310566,000
2018 [127] 232,88710,073162,648647,500

Controversies

Since its founding, the company has attracted criticism and controversy for its actions, including: supplying law enforcement with facial recognition surveillance tools; [128] forming cloud computing partnerships with the CIA; [129] leading customers away from bookshops; [130] adversely impacting the environment; [131] placing a low priority on warehouse conditions for workers; actively opposing unionization efforts; [132] remotely deleting content purchased by Amazon Kindle users; taking public subsidies; seeking to patent its 1-Click technology; engaging in anti-competitive actions and price discrimination; [24] and reclassifying LGBT books as adult content. [133] [134] Criticism has also concerned various decisions over whether to censor or publish content such as the WikiLeaks website, works containing libel and material facilitating dogfight, cockfight, or pedophile activities. In December 2011, Amazon faced a backlash from small businesses for running a one-day deal to promote its new Price Check app. Shoppers who used the app to check prices in a brick-and-mortar store were offered a 5% discount to purchase the same item from Amazon. [135] Companies like Groupon, eBay and Taap.it countered Amazon's promotion by offering $10 off from their products. [136] [137] The company has also faced accusations of putting undue pressure on suppliers to maintain and extend its profitability. One effort to squeeze the most vulnerable book publishers was known within the company as the Gazelle Project, after Bezos suggested, according to Brad Stone, "that Amazon should approach these small publishers the way a cheetah would pursue a sickly gazelle." [90] In July 2014, the Federal Trade Commission launched a lawsuit against the company alleging it was promoting in-app purchases to children, which were being transacted without parental consent. [138]

Environmental impact

In November 2018, a community action group opposed the construction permit delivered to Goodman Group for the construction of a 160,000 square metres (1,700,000 sq ft) logisitics platform Amazon will operate at Lyon–Saint-Exupéry Airport. In February 2019, Étienne Tête filed a request on behalf of a second regional community action group asking the administrative court to decide whether the platform served a sufficiently important public interest to justify its environmental impact. Construction has been suspended while these matters are decided. [131]

Selling counterfeit items

On October 16, 2016, Apple filed a trademark infringement case against Mobile Star LLC for selling counterfeit Apple products to Amazon. In the suit, Apple provided evidence that Amazon was selling these counterfeit Apple products and advertising them as genuine. Through purchasing, Apple found that it was able to identify counterfeit products with a success rate of 90%. Amazon was sourcing and selling items without properly determining if they are genuine. Mobile Star LLC settled with Apple for an undisclosed amount on April 27, 2017. [139]

Sales and use taxes

Amazon's state sales tax collection policy has changed over the years since it did not collect any sales taxes in its early years. In the U.S., state and local sales taxes are levied by state and local governments, not at the federal level. In most countries where Amazon operates, a sales tax or value added tax is uniform throughout the country, and Amazon is obliged to collect it from all customers. Proponents of forcing Amazon.com to collect sales tax—at least in states where it maintains a physical presence—argue the corporation wields an anti-competitive advantage over storefront businesses forced to collect sales tax. [140]

Many U.S. states in the 21st century have passed online shopping sales tax laws designed to compel Amazon.com and other e-commerce retailers to collect state and local sales taxes from its customers. Amazon.com originally collected sales tax only from five states as of 2011, but as of April 2017, Amazon collects sales taxes from customers in all 45 states that have a state sales tax and in Washington, D.C. [141]

Income taxes

Amazon paid no federal income taxes in the U.S. in 2017 and 2018, and actually received tax refunds worth millions of dollars, despite recording several billion dollars in profits each year. [23] CNN reported that Amazon's tax bill was zero because they took advantage of provisions in years when they were losing money that allowed them to offset future taxes on profits, as well as various other tax credits. [142] Amazon was criticized by political figures for not paying federal income taxes. [143]

Comments by Donald Trump and Bernie Sanders

In early 2018, President Donald Trump repeatedly criticized Amazon's use of the United States Postal Service and its prices for the delivery of packages, stating, "I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy," Trump tweeted. "Amazon should pay these costs (plus) and not have them bourne [sic] by the American Taxpayer." [144] Amazon's shares fell by 6 percent as a result of Trump's comments. Shepard Smith of Fox News disputed Trump's claims and pointed to evidence that the USPS was offering below-market prices to all customers with no advantage to Amazon. However, analyst Tom Forte pointed to the fact that Amazon's payments to the USPS are not made public and that their contract has a reputation for being "a sweetheart deal". [145] [146]

Throughout the summer of 2018, Vermont Senator Bernie Sanders criticized Amazon's wages and working conditions in a series of YouTube videos and media appearances. He also pointed to the fact that Amazon had paid no federal income tax in the previous year. [147] Sanders solicited stories from Amazon warehouse workers who felt exploited by the company. [148] One such story, by James Bloodworth, described the environment as akin to "a low-security prison" and stated that the company's culture used an Orwellian newspeak. [149] These reports cited a finding by New Food Economy that one third of fulfilment center workers in Arizona were on the Supplemental Nutrition Assistance Program (SNAP). [150] Responses by Amazon included incentives for employees to tweet positive stories and a statement which called the salary figures used by Sanders "inaccurate and misleading". The statement also charged that it was inappropriate for him to refer to SNAP as "food stamps". [148] On September 5, 2018, Sanders along with Ro Khanna introduced the Stop Bad Employers by Zeroing Out Subsidies (Stop BEZOS) Act aimed at Amazon and other alleged beneficiaries of corporate welfare such as Walmart, McDonald's and Uber. [151] Among the bill's supporters were Tucker Carlson of Fox News and Matt Taibbi who criticized himself and other journalists for not covering Amazon's contribution to wealth inequality earlier. [152] [153]

On October 2, Amazon announced that its minimum wage for all American employees would be raised to $15 per hour. Sanders congratulated the company for making this decision. [154]

Working conditions

Former employees, current employees, the media, and politicians have criticized Amazon for poor working conditions at the company. [22] [155] [156] In 2011, it was publicized that workers had to carry out tasks in 100 °F (38 °C) heat at the Breinigsville, Pennsylvania warehouse. As a result of these inhumane conditions, employees became extremely uncomfortable and suffered from dehydration and collapse. Loading-bay doors were not opened to allow in fresh air because of concerns over theft. [157] Amazon's initial response was to pay for an ambulance to sit outside on call to cart away overheated employees. [157] The company eventually installed air conditioning at the warehouse. [158]

Some workers, "pickers", who travel the building with a trolley and a handheld scanner "picking" customer orders can walk up to 15 miles during their workday and if they fall behind on their targets, they can be reprimanded. The handheld scanners give real-time information to the employee on how quickly or slowly they are working; the scanners also serve to allow Team Leads and Area Managers to track the specific locations of employees and how much "idle time" they gain when not working. [159] [160]

In a German television report broadcast in February 2013, journalists Diana Löbl and Peter Onneken conducted a covert investigation at the distribution center of Amazon in the town of Bad Hersfeld in the German state of Hessen. The report highlights the behavior of some of the security guards, themselves being employed by a third party company, who apparently either had a neo-Nazi background or deliberately dressed in neo-Nazi apparel and who were intimidating foreign and temporary female workers at its distribution centers. The third party security company involved was delisted by Amazon as a business contact shortly after that report. [161] [162] [163] [164] [165]

In March 2015, it was reported in The Verge that Amazon will be removing non-compete clauses of 18 months in length from its US employment contracts for hourly-paid workers, after criticism that it was acting unreasonably in preventing such employees from finding other work. Even short-term temporary workers have to sign contracts that prohibit them from working at any company where they would "directly or indirectly" support any good or service that competes with those they helped support at Amazon, for 18 months after leaving Amazon, even if they are fired or made redundant. [166] [167]

A 2015 front-page article in The New York Times profiled several former Amazon employees [168] who together described a "bruising" workplace culture in which workers with illness or other personal crises were pushed out or unfairly evaluated. [17] Bezos responded by writing a Sunday memo to employees, [169] in which he disputed the Times's account of "shockingly callous management practices" that he said would never be tolerated at the company. [17]

In an effort to boost employee morale, on November 2, 2015, Amazon announced that it would be extending six weeks of paid leave for new mothers and fathers. This change includes birth parents and adoptive parents and can be applied in conjunction with existing maternity leave and medical leave for new mothers. [170]

In mid-2018, investigations by journalists and media outlets such as The Guardian reported poor working conditions at Amazon's fulfillment centers. [171] [172] Later in 2018, another article exposed poor working conditions for Amazon's delivery drivers. [173]

In response to criticism that Amazon doesn't pay its workers a livable wage, Jeff Bezos announced beginning November 1, 2018, all US and UK Amazon employees will earn a $15 an hour minimum wage. [174] Amazon will also lobby to make $15 an hour the federal minimum wage. [175] At the same time, Amazon also eliminated stock awards and bonuses for hourly employees. [176]

On Black Friday 2018, Amazon warehouse workers in several European countries, including Italy, Germany, Spain and the United Kingdom, went on strike to protest inhumane working conditions and low pay. [177]

The Daily Beast reported in March 2019 that emergency services responded to 189 calls from 46 Amazon warehouses in 17 states between the years 2013 and 2018, all relating to suicidal employees. The workers attributed their mental breakdowns to employer-imposed social isolation, aggressive surveillance, and the hurried and dangerous working conditions at these fulfillment centers. One former employee told The Daily Beast "It's this isolating colony of hell where people having breakdowns is a regular occurrence." [178]

On July 15, 2019, during the onset of Amazon's "Prime Day" sale event, Amazon employees working in the United States and Germany went on strike in protest of unfair wages and poor working conditions. [179] [180]

Conflict of interest with the CIA and DOD

In 2013, Amazon secured a US$600 million contract with the CIA, which poses a potential conflict of interest involving the Bezos-owned The Washington Post and his newspaper's coverage of the CIA. [181] Kate Martin, director of the Center for National Security Studies, said, "It's a serious potential conflict of interest for a major newspaper like The Washington Post to have a contractual relationship with the government and the most secret part of the government." [182] This was later followed by a US$10 billion contract with the Department of Defence. [129]

Seattle head tax and houselessness services

In May 2018, Amazon threatened the Seattle City Council over an employee head tax proposal that would have funded houselessness services and low-income housing. The tax would have cost Amazon about $800 per employee, or 0.7% of their average salary. [183] In retaliation, Amazon paused construction on a new building, threatened to limit further investment in the city, and funded a repeal campaign. Although originally passed, the measure was soon repealed after an expensive repeal campaign spearheaded by Amazon. [184]

Nashville Operations Center of Excellence

The incentives given by the Metropolitan Council of Nashville and Davidson County to Amazon for their new Operations Center of Excellence in Nashville Yards, a site owned by developer Southwest Value Partners, have been controversial, including the decision by the Tennessee Department of Economic and Community Development to keep the full extent of the agreement secret. [185] The incentives include "$102 million in combined grants and tax credits for a scaled-down Amazon office building" as well as "a $65 million cash grant for capital expenditures" in exchange for the creation of 5,000 jobs over seven years. [185]

The Tennessee Coalition for Open Government called for more transparency. [185] Another local organization known as the People's Alliance for Transit, Housing, and Employment (PATHE) suggested no public money should be given to Amazon; instead, it should be spent on building more public housing for the working poor and the homeless and investing in more public transportation for Nashvillians. [186] Others suggested incentives to big corporations don't improve the local economy. [187]

In November 2018, the proposal to give Amazon $15 million in incentives was criticized by the Nashville Firefighters Union and the Nashville chapter of the Fraternal Order of Police, [188] who called it "corporate welfare." [189] In February 2019, another $15.2 million in infrastructure was approved by the council, although it was voted down by three council members, including Councilwoman Angie Henderson who dismissed it as "cronyism". [190]

Facial recognition technology and law enforcement

While Amazon has publicly opposed secret government surveillance, as revealed by Freedom of Information Act requests it has supplied facial recognition support to law enforcement in the form of the Rekognition technology and consulting services. Initial testing included the city of Orlando, Florida, and Washington County, Oregon. Amazon offered to connect Washington County with other Amazon government customers interested in Rekognition and a body camera manufacturer. These ventures are opposed by a coalition of civil rights groups with concern that they could lead to an expansion of surveillance and be prone to abuse. Specifically, it could automate the identification and tracking of anyone, particularly in the context of potential police body camera integration. [128] [191] [192] Because of the backlash, the city of Orlando has publicly stated it will no longer use the technology. [193]

Lobbying

Amazon lobbies the United States federal government and state governments on issues such as the enforcement of sales taxes on online sales, transportation safety, privacy and data protection and intellectual property. According to regulatory filings, Amazon.com focuses its lobbying on the United States Congress, the Federal Communications Commission and the Federal Reserve. Amazon.com spent roughly $3.5 million, $5 million and $9.5 million on lobbying, in 2013, 2014 and 2015, respectively. [194]

Amazon.com was a corporate member of the American Legislative Exchange Council (ALEC) until it dropped membership following protests at its shareholders' meeting on May 24, 2012. [195]

In 2014, Amazon expanded its lobbying practices as it prepared to lobby the Federal Aviation Administration to approve its drone delivery program, hiring the Akin Gump Strauss Hauer & Feld lobbying firm in June. [196] Amazon and its lobbyists have visited with Federal Aviation Administration officials and aviation committees in Washington, D.C. to explain its plans to deliver packages. [197]

See also

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Further reading