A Brief History of Amazon.com, Inc. (AMZN)

Amazon.com, Inc. was founded by Jeff Bezos in July 1994. Initially, the company began as an online marketplace for books but soon diversified to sell a wide range of products and services.

Key events in Amazon's history include:

• 1994: Jeff Bezos incorporates Cadabra, Inc. in Washington state. The name is later changed to Amazon.com, Inc.
• 1995: Amazon officially launches its website as an online bookstore.
• 1997: Amazon goes public with its initial public offering (IPO) under the ticker symbol AMZN.
• 2000: Amazon introduces its logo with a curved arrow leading from A to Z, symbolizing its aim to sell everything from A to Z.
• 2002: The company launches Amazon Web Services (AWS), initially offering simple storage services.
• 2005: Amazon Prime is introduced, offering members free two-day shipping for an annual fee.
• 2006: AWS expands to include cloud computing services, revolutionizing the industry.
• 2007: Launch of the Amazon Kindle, a revolutionary e-reader.
• 2014: Amazon enters the smart home market with the launch of the Amazon Echo and the Alexa voice assistant.
• 2017: Acquisition of Whole Foods Market for $13.7 billion, marking a significant move into the grocery sector.
• 2021: Jeff Bezos steps down as CEO, handing over the reins to Andy Jassy, former head of AWS.

Who Owns Amazon.com, Inc. (AMZN)

Amazon.com, Inc. (AMZN) is one of the largest and most influential companies in the world, with a wide and diverse shareholder base. The ownership structure of Amazon comprises institutional investors, mutual funds, individual shareholders, and insiders within the company.

Here are the key components of Amazon's ownership:

• Institutional Investors: A significant portion of Amazon's shares is owned by institutional investors. These are entities like investment firms, pension funds, and insurance companies. Some of the largest institutional investors include The Vanguard Group, BlackRock, and State Street Corporation.
• Mutual Funds: Mutual funds are another major shareholder category. These funds pool money from many investors to purchase a diversified portfolio of stocks, including Amazon.
• Individual Shareholders: Individual investors, including retail investors, also own shares of Amazon. These could be through direct stock purchases or through retirement and brokerage accounts.
• Insiders: This includes individuals within the company who hold significant shares. Jeff Bezos, the founder and former CEO, remains one of the largest individual shareholders. Other company executives and board members also hold shares in the company.

Amazon's ownership is spread across a broad spectrum of investors, which provides stability and diverse input into the company’s governance and strategic direction.

Amazon.com, Inc. (AMZN) Mission Statement

Amazon.com, Inc. (AMZN) is driven by a powerful mission statement that guides its business strategy and operational ethos. The company's mission statement is:

"To be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices."

This mission statement highlights several key elements that are crucial to Amazon's business model and corporate philosophy:

• Customer-Centric Focus: Amazon places the customer at the center of everything it does, striving to provide an exceptional shopping experience through a user-friendly platform and top-notch customer service.
• Vast Product Selection: The company aims to offer an extensive range of products, allowing customers to find and discover anything they might want to buy online.
• Competitive Pricing: Amazon is committed to offering its customers the lowest possible prices, making its products affordable and accessible to a broader audience.

This mission statement reflects Amazon's dedication to continuously innovating and enhancing the customer experience, while maintaining a broad selection and competitive pricing.

How Amazon.com, Inc. (AMZN) Works

Amazon.com, Inc. (AMZN) is a global e-commerce and technology company headquartered in Seattle, Washington. Founded by Jeff Bezos in 1994, Amazon has grown to become one of the most influential and valuable companies in the world. Here’s an insight into how Amazon operates:

Amazon's primary business is its e-commerce platform, where it offers a vast range of products, including books, electronics, apparel, and more. The platform also allows third-party sellers to list and sell their products, significantly expanding the range of items available to customers.

• Amazon Marketplace: Third-party sellers can list products on Amazon, gaining access to Amazon's vast customer base.
• Fulfillment by Amazon (FBA): Sellers can store their products in Amazon’s fulfillment centers, and Amazon takes care of storage, packaging, and shipping.
• Amazon Prime: A subscription service offering benefits like free two-day shipping, streaming of movies and TV shows, and other exclusive deals.

Amazon has diversified into various technology and service segments, which have become significant revenue streams for the company.

• Amazon Web Services (AWS): One of the leading cloud computing platforms offering a wide range of services like computing power, storage options, and networking, catering to businesses of all sizes.
• Amazon Alexa: A voice-activated assistant integrated into smart speakers and other devices, enabling users to control smart home devices, play music, and more.
• Amazon Advertising: Provides advertising solutions that help businesses reach customers on Amazon’s platform and beyond.

Amazon has built an extensive logistics and distribution network which is a key component of its efficiency and customer satisfaction.

• Fulfillment Centers: State-of-the-art warehouses where products are stored, packaged, and shipped to customers.
• Delivery Network: Amazon utilizes its own delivery network (Amazon Logistics) along with third-party carriers to ensure timely delivery.
• Last-Mile Delivery: Enhancements such as Amazon Prime Air (drone delivery) and Amazon Key (in-home delivery) aim to streamline the delivery process.

Amazon has ventured into the manufacturing and sale of consumer electronics, contributing to its diverse portfolio.

• Kindle: A series of e-readers designed specifically for reading digital books and other written media.
• Fire Tablets and Fire TV: Affordable tablets and streaming devices that integrate with Amazon’s content services.
• Echo Devices: Smart speakers powered by Alexa, offering voice control capabilities for various tasks.

Amazon offers a variety of subscription services that provide recurring revenue streams and enhance customer loyalty.

• Amazon Prime: Membership that includes benefits like fast shipping, streaming services, exclusive deals, and more.
• Amazon Music Unlimited: A music streaming service providing access to millions of songs and playlists.
• Amazon Fresh: A grocery delivery service available to Prime members, offering fresh produce and other grocery items.

How Amazon.com, Inc. (AMZN) Makes Money

Amazon.com, Inc. (AMZN) is one of the world's largest and most diversified companies, generating revenue through various streams. Here’s an overview of the primary ways Amazon makes money:

1. E-commerce Sales

Amazon is primarily known as an e-commerce giant. The company sells a wide variety of products, including electronics, books, apparel, and household items. These sales are facilitated through its website and mobile app.

• Retail Products: Amazon sells both third-party and its own branded products.
• AWS Marketplace: It also provides a platform for other sellers, taking a commission on each transaction.

2. Amazon Web Services (AWS)

AWS is Amazon’s cloud computing division, offering a range of services such as storage, computing power, and databases. AWS has become a major revenue driver for Amazon, particularly through:

• Subscription Fees: Charges businesses and developers for cloud services.
• Enterprise Solutions: Provides large-scale solutions for businesses, including data analytics and machine learning.

3. Subscription Services

Amazon offers several subscription services that provide recurring revenue streams:

• Amazon Prime: This subscription offers benefits like free shipping, streaming services, and exclusive deals.
• Amazon Music and Kindle Unlimited: These services provide access to music and e-books for a monthly fee.
• Amazon Fresh: A grocery delivery service for Prime members.

4. Advertising

Amazon’s advertising services, known as Amazon Advertising, allow brands to promote their products on Amazon’s platform. The company charges businesses for:

• Sponsored Ads: Pay-per-click advertisements for higher visibility on search results.
• Display Ads: Banner advertisements shown on various Amazon-owned and partner sites.

5. Physical Stores

Amazon also operates physical retail stores, including Whole Foods Market, Amazon Go, and Amazon Books. These stores generate revenue through traditional in-store sales.

6. Devices and Electronics

Amazon sells its own line of electronic devices, such as Kindle e-readers, Fire tablets, Echo speakers, and Fire TV. These products not only generate direct sales revenue but also encourage the use of Amazon’s ecosystem and services.

7. Third-Party Seller Services

Amazon provides various services to third-party sellers, who use its platform to market their own products:

• Fulfillment by Amazon (FBA): Storage, packaging, and shipping services for sellers.
• Seller Fees: Charges for listing and selling items on the platform.