To give you a more intuitive understanding of why Amazon is so valuable, we will analyze it from its six business segments:
First, Amazon's e-commerce and logistics business.
Everyone knows that Amazon started by selling books online, and gained a large number of users through low prices, and gradually seized the market share of the US retail market. Since then, Amazon has continuously expanded its product categories and become an online e-commerce platform. At the same time, Amazon extended to build a third-party seller platform Marketplace, making its product breadth richer, so as to obtain a steady stream of users and traffic.
At the same time, with the development of business, Amazon has established its own logistics system to enhance the user experience. At present, Amazon has established 14 sites around the world, and there are more than 100 global operation centers. Judging from the global distribution of Amazon's storage area and storage quantity, Amazon has now entered 2 1 country in the world.
Second, private brand business.
The Kindle, Amazon's first self-owned hardware product, was launched in 2007, which opened the way for the development of Amazon's own brand. As a retailer, the purpose of launching private brands is to improve the repurchase rate and gross profit margin, so different categories of private brands are launched. At present, the mainstream private brands of Amazon are as follows: AmazonBasics, Echo, Fire TV, Kindle and Amazon Elements, which are mainly distributed in the fields of fast-moving consumer goods, electronic products and personal care. The development of its own brand has contributed profits to Amazon's e-commerce business and built a competitive advantage.
Third, Amazon has laid out new retail and actively promoted online and offline integration.
As we all know, the new retail was put forward by Ma Yun of China Alibaba Company in 20 16. Later, Internet giants such as Alibaba and Tencent began to lay out new retail, and offline retailers and brands began to pay attention to new retail business. Amazon is actually laying out new retail business and promoting online and offline integration.
1, Amazon launched Amazon Go to open the unmanned retail mode.
First of all, Amazon has opened several unmanned retail stores under Amazon Go and changed the retail industry with technology. Amazon Go confirms the identity of customers through face recognition technology, and the data will eventually be transmitted to the settlement system. Customers will leave the store directly after purchasing, and the system will directly deduct the cost from the user's Amazon account and let them take it away immediately. Solve the problem of offline cashier queuing through technical means to enhance customer shopping experience. This improvement of user experience depends on Amazon's powerful AI technology and the support provided by Amazon cloud technology for data transmission.
2. Amazon acquires offline physical retail.
In 20 17, Amazon acquired the supermarket chain Whole Foods and began to move towards offline physical retail. Amazon puts its own brand of Whole Foods Supermarket on the Internet. Online users can learn about it through the online platform, and then buy it in the store online. At the same time, starting from 20 18, Amazon began to use the offline stores of Whole Foods Supermarket as warehouses, trying to promote the two-hour delivery service, so that users can receive their own fresh products within two hours after placing an order online. During the epidemic in 2020, Amazon also carried out distribution business through offline outlets.
Fourth, Amazon's financial business.
Amazon has laid out its financial services business since 2007. Amazon's financial development mainly focuses on its e-commerce business, focusing on further increasing user stickiness and activity and reducing user transaction costs. In addition to focusing on the payment field, Amazon is also widely involved in cash, credit, insurance and mortgage loans. At present, it has formed three pillar businesses: payment, cash and credit, and has continuously expanded its new business system. At the same time, financial services have become an important part of the Amazon ecosystem.
Fifth, Amazon's cloud computing business AWS.
Amazon officially launched Amazon Cloud Computing Service (AWS) in 2006, and it was also one of the first enterprises to provide cloud computing services. At first, AWS was used for the storage and computing resources of Amazon's own online shopping platform, and then with the development of business, the idle resources of the system were gradually packaged and sold to enterprises. AWS revenue grew rapidly from 20 10. With the steady growth of AWS revenue, it contributed more than half of its operating profit and became the star business of Amazon.
At present, Amazon AWS business covers 18 regions around the world, with 55 usable regions. Amazon's AWS global cloud server market share has reached 5 1%, making it the largest cloud server operator in the world.
Sixth, Amazon's Internet of Things business.
As the world's largest cloud service provider, Amazon launched an AWS-based IoT platform on 20 15 and 10, named AWS IoT. AWS IoT is a service platform and a new business growth point for Amazon outside the cloud market. Amazon's innate advantages in the cloud market will become a booster for the vigorous development of AWS Internet of Things industry in the future.
Through Amazon's six business segments, we can see that Amazon has become the largest digital business empire in the United States, which is similar to the collection of Alibaba and JD.COM in China to some extent. In fact, the market value of Alibaba and JD.COM is not as good as that of Amazon. At the same time, Amazon's flywheel effect makes it build its own moat from e-commerce business to logistics business to cloud computing and the layout of the future Internet of Things, thus forming a huge digital business empire and becoming a business eco-company, so it is understandable that the market value of such a company exceeds one trillion dollars.