Founded in 1994, Amazon.com first started from selling books online and gradually became an e-commerce retail platform. And now Amazon.com's business includes: retail business (both online e-commerce and offline physical stores), hardware production, cloud computing services, content production and logistics services, cloud computing, the Internet of Things (IoT) synergistic development of the complete ecosystem. Amazon has become the United States and even the world's influential Internet technology enterprises, Amazon's market value of up to 1.6 trillion U.S. dollars , in addition to Apple it is the second company with a market value of more than one trillion dollars, Amazon's market value of why it can be more than one trillion U.S. dollars?

In order to give you a more intuitive understanding of why Amazon is so valuable, we analyze it from its 6 major business segments:

First, Amazon's e-commerce and logistics business

We all know that Amazon started out as an on-line seller of books. Through low prices, it acquired a large number of users and gradually grabbed market share in the U.S. retail market. Since then, Amazon has continued to expand its product categories to become an online e-commerce platform. At the same time, Amazon extended to create a third-party seller platform Marketplace, so that its product breadth is more abundant, in order to obtain a constant flow of users and traffic.

At the same time with the development of the business, Amazon has built its own logistics system to enhance the user experience. At present, Amazon has established 14 major sites around the world, with more than 100 global operation centers. From the point of view of the global distribution of Amazon's warehousing area and the number of warehouses, Amazon has entered 21 countries around the world.

Second, the private label business

Amazon's first own hardware products Kindle launched in 2007, opened up the road of development of Amazon's own brand. As a retailer to launch private label is to improve the repurchase rate and gross margin, and then launched a different category of private label, respectively, at present, Amazon mainstream several major private label brands include the following: AmazonBasics, Echo, Fire TV, Kindle, Amazon Elements, which are mainly distributed in the FMCG, electronics, personal care and other areas. The development of private labels contributes to the profits of Amazon.com's e-commerce business and builds a competitive advantage.

Third, Amazon layout of new retail, and actively promote the integration of online and offline

We all know that the new retail is our China's Alibaba's Jack Ma put forward in 2016, and then Alibaba, Tencent and other Internet giants have begun to lay out the new retail, and at the same time, the offline retail industry and various brands have begun to pay attention to the new retail business. And the U.S. Amazon.com is actually also laying out the new retail business, promoting the integration of online and offline.

1. Amazon launched Amazon Go to start the unmanned retail mode

First of all, Amazon opened several Amazon Go offline unmanned retail stores, using technology to change the retail industry. Amazon Go confirms the customer's identity through face recognition technology, and these data will eventually be transmitted to the settlement system. Amazon Go confirms the identity of the customer through face recognition technology, and the data will eventually be transferred to the settlement system, and the customer will leave the store directly after shopping, and the system will deduct the fee directly from the user's Amazon account, so as to realize that it can be taken away. Through the technical way to solve the problem of offline cashier queuing, enhance the customer shopping experience. This enhancement of the user experience relies on Amazon's powerful AI technology, as well as the support provided by Amazon cloud technology for data transmission.

2. Amazon's acquisition of offline physical retail

In 2017, Amazon.com acquired the supermarket chain Whole Foods, and began to move towards offline physical retail. Amazon put the private brands of the acquired Whole Foods online, and online users can learn about them through the online platform and then buy them in offline physical stores. At the same time from 2018, Amazon.com began to Whole Foods offline physical stores as warehouses, trying to promote two-hour delivery service, users can order online to receive their own purchase of fresh products within two hours. 2020 during the epidemic, Amazon is also through the offline outlets to carry out the delivery business.

Fourth, Amazon's financial business

Amazon.com began to layout the financial services business in 2007, Amazon's financial development is mainly centered on its e-commerce business, focusing on further increasing user stickiness and activity, reduce user transaction costs . In addition to focusing on deepening in the payment field, Amazon is also widely involved in the cash, credit, insurance and mortgage field, and has formed a payment, cash and credit three pillars of the business is the main, and constantly expanding the system of new business, while the financial services has become an important part of the Amazon ecosystem.

Fifth, Amazon's cloud computing business AWS

Amazon officially launched the Amazon Cloud Computing Services (AWS) in 2006, and is also one of the first companies to provide cloud computing services. Initially AWS was used for storage and computing resources for Amazon's own online shopping platform, and then gradually packaged and sold the system's unused resources to businesses as the business developed.AWS revenue has grown rapidly since 2010, and with the steady increase in the proportion of AWS revenue, contributing more than half of operating profit, it has become Amazon's star business.

Currently, Amazon's AWS business spans 18 regions around the world, with 55 availability zones, and Amazon's AWS global cloud server market share has reached 51% to become the world's largest cloud server operator.

VI. Amazon.com's Internet of Things business

Amazon.com, as the world's largest cloud service provider, launched an AWS-based IoT platform named AWS IoT in October 2015, while maintaining a distant lead in cloud market share. AWS IoT is a service platform that is Amazon is opening up new business growth points outside of the cloud market, and Amazon's inherent strengths in the cloud market will be a booster for the booming AWS IoT industry in the future.

Through Amazon's six business segments can be seen, Amazon.com has become the largest digital business empire in the United States, in a way very similar to our Chinese Alibaba and Jingdong's aggregation, in fact, at present, Alibaba plus Jingdong's market capitalization can not catch up with Amazon.com. At the same time, Amazon's flywheel effect makes it from the e-commerce business to the logistics business to the cloud computing and the future layout of the Internet of Things, and constantly build their own company's moat so as to form a huge digital business empire, but also become a business ecological company, so the market value of such a company more than one trillion U.S. dollars is also no excuse.