Amazon story of success.

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As we all know that Amazon, who have perfectly dominated the US e-comers market as well as spread almost all over the world, have jumped with a large growth rate In 2018 from almost 5 billion to 10 billion. What is the reason behind it?

Amazon has the largest market share in e-comers platform but in the first half of 2016 it started a new kind of service and that is Amazon AWS, What is a new kind of cloud solution division which is the comprised of a huge networking of servers to process, and store the large data that helps companies to work online efficiently.

Amazon AWS service

The cloud service used to give the full air space to different companies like Netflix, help. Amazon AWS charges on the basis of the volume, features, services they use.

This makes Amazon a combination of e-comers and the cloud service providing company. In the first quarter of 2018, it grows over 49% and it generated revenue of $1.4b. It also started giving services like SAP and all so we can see it has diversified its service from time to time.

In 2018 it gets more over $5 billion of operating income and $25billion of revenue which was more than Macdonald’s. Now 58% of the revenue is generated from Amazon AWS.


But there is Amazon AWS also affect many other growths of Amazon product now the revenue generated from the other activity like amazon add have shown a growth of 95%. That shows a profit of $10.1 billion.

If advertising goes like this some predictors say that it will be more profitable than Amazon AWS.
Now the most important thing we have seen they have generated policies to sell your products. Now the big companies offering more money to sell their product on Amazon. The profit margin is 14 to 20% according to the sale of the products excluding the packaging and delivery charges. Its revenues are increasing day by day.

Now the situation is that if you are a good company then you really have to be on Amazon. Now the 3rd party is taking 34% growth in the market. That is a huge market where Amazon has become a crocodile of the lake.

But wait you have already forgotten the margin of Amazon's own products like Amazon firestick, Alexa, and many more.

Conclusion 

We have seen the broad ways that Amazon acquired and intend to grow, it is the company growing at a huge rate. We are expecting that this is just the beginning of their blue ocean strategy.



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