How Much of Amazon's Sales Come From E-Commerce?

Core Business - Amazon has built an unmatched e-commerce business over the past two decades, while also experimenting with new business ideas like Amazon Web Services (AWS) [1] - E-commerce remains a significant part of Amazon's total business, accounting for $89.3 billion or 62% of total sales in Q1 2024 [2] E-commerce Segment - The e-commerce segment includes Amazon's online stores and third-party sales, with ancillary services like subscriptions raising the share of overall sales to 70% [2] - Despite the growth of AWS and other businesses, e-commerce is still the main business by a wide margin, although it is not the main source of profits [2] Profit Sources - AWS contributed over 60% of Amazon's operating income in Q1 2024, despite only accounting for 17% of total revenue [2] - Advertising is the fastest-growing segment for Amazon, representing 8% of sales in Q1 2024 and growing 24% year over year [2] Growth Model - Amazon's growth model involves generating revenue through e-commerce and investing in efficiency and profitability [3] - The company transitioned to a regional fulfillment network to improve delivery speed and reduce costs, fostering customer loyalty [3] Future Growth Areas - Proceeds from e-commerce are used to fund growth segments, with AWS currently serving as the profit-making machine and advertising taking the lead in growth [3] - The "other" category includes newer businesses, primarily in healthcare, which is seen as a breeding area for Amazon's next big initiative [3]