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> this rubbed me the wrong way when they’re making money hand-over-fist on top of recent Prime increases. Are they? AWS is very profitable, but the e-commerce
by mdasen 3y ago
> this rubbed me the wrong way when they’re making money hand-over-fist on top of recent Prime increases.
Are they? AWS is very profitable, but the e-commerce business isn't doing as well. In North America, their operating margin is 4.2% for the past 12 months. International operating margin is -2.0% so they're still losing money on their international retail business. Overall, their retail business net margin is probably around 1.8%.
They're making good money, but AWS is less than 5% of their revenue and accounts for 67% of their profits. The retail business does a ton of sales, but has very thin margins on those sales.
I definitely encourage people to do things like cancel Prime. Companies offer better deals when they know people will walk away. However, I wouldn't say that Amazon is making money hand-over-fist on their retail business. Their margins are pretty tight there.