Amazon Facts and Figures: This is what you should know about the online giant!

Learn facts about Amazon you’ve never heard before! From finding the name to the recipe for success.

Jeff Bezo’s “It’s always day one” is deeply rooted in Amazon’s corporate philosophy, and there is probably no quote that Amazon would describe better. After more than a 25-year success story, Amazon is still day one, despite sales of over 280 billion US dollars per year. Almost everyone knows and uses Amazon. Many people don’t know that the considerable product selection doesn’t come from Amazon itself. The company has long outgrown the infancy of a pure online shop and offers its platform to online retailers to distribute its products. The so-called FBA program, short for “Fulfillment By Amazon,” already accounted for approximately 58% of the online giant’s total goods turnover in 2019.

But where does the name Amazon come from anyway? How many customers does Amazon have in Germany, how many products are there, and how many employees does the company have in Germany alone?

We take a look behind the scenes, and you will learn what the Amazon Leadership Principles and the Amazon Flywheel are all about. Whether customer or FBA seller: You should know these Amazon data and facts!

1.) Beginnings – When was Amazon founded?

In 1994, computer scientist Jeff Bezos founded Amazon in Seattle with nothing more than a vision and belief in the long-term success of the Internet. Although the idea of an “Everything Store” was already present, the company initially specialized in a single category: online bookstores.

The first book, “Fluid Concepts and Creative Analogies” by Doug Hofstadter, went on the virtual shop counter in April 1995.

After dominating the book market, Amazon gradually expanded into different categories and countries. In October 1998, it was time for Germany, and the first books could be ordered via the Internet with just a few clicks. At the time, only about 10% of Germans had Internet access. This fact alone reflects Jeff Bezo’s long-term thinking.

Amazon was so focused on investing that the company did not make its first profits until 2001. But since then, things have changed, and the company has become one of the most valuable companies globally!

2.) Company name

Amazon was not the first choice of founder Jeff Bezos at the time. Originally, Cadabra Inc. was named after the spell “abracadabra” to show how magical online shopping is.

However, after some misunderstood the name and said “cadaver,” it was decided to change the name, with various terms such as relentless.com, browse.com, or wake.com available.

Jeff Bezos was so enthusiastic about the names that he immediately bought the corresponding domains. If you type these domains into your browser today, you will become amazon. You were Redirected to com. Try it out!

The name Amazon was chosen for two reasons: First, it starts with an A. In the past, search engines displayed their results in alphabetical order. Therefore, it was an advantage to have a name that begins with the first letter of the alphabet.

On the other hand, the name is inspired by the Amazon River, the largest river in the world. This should show how big and strong the company will one day be. This is what the company was guided by for its first logo:

Amazon’s First Logo

3.) Amazon Logo

Amazon’s logo has evolved over the years, just like its own. The Amazon logo with the advertised name and the orange arrow, which extends from a to z, was introduced in 2000.

Amazon Logo

The arrow from A to Z should indicate the vast range of products and represent a friendly smile. It allows Amazon to use its cartons as a marketing tool and deliver a “smile at the door” to all customers.

4.) Facts and figures about Amazon Germany

When we listen to Amazon, the first thing we think about is online shopping. Of course, this is true because Amazon is the largest online retailer globally and the choice of products seems almost limitless. Amazon’s sales, however, consist of much more than just online retail. More specifically, four pillars contribute to Amazon’s annual revenue in 2019 of around 280 billion US dollars.

4.1 Online commerce

Amazon’s largest source of revenue is online commerce. This, in turn, consists of two areas. On the one hand, by selling Amazon’s products and on the other hand, through Amazon’s marketplace. There, third-party retailers can offer their goods via the platform and pay Amazon a sales commission and a monthly fee of 39€. If you also let Amazon handle the logistics and shipping (Amazon FBA), you will pay a corresponding cost to Amazon.

4.2 AWS

Amazon’s second primary source of revenue is cloud computing. Under the name AWS (Amazon Web Service), 175 offers various services around data storage and data processing. This division generated an annual turnover of around 35 billion US dollars in 2019. AWS is the world’s most widely used cloud platform and highlights Amazon as a technology company. Although Amazon’s cloud computing accounts for only about 12% of total revenue, it contributes to 70% of total profit.

4.3 Amazon Prime

Amazon’s Prime service is becoming increasingly popular. In 2019, Amazon enjoyed 150 million paying Prime members for the first time. In the US, more people hold Prime membership than their passports. In addition to lightning-fast shipping, Prime also offers its customers a streaming service for movies and series. The company thus earned 5.5 billion US dollars through Prime memberships alone in 2019, which corresponds to a 32% increase compared to the previous year.

4.4 Stationary trade

In Germany, Amazon generates almost all its sales through online services. In the United States, things are pretty different. Amazon has made its entry into stationary retail by acquiring the brand “Whole Foods” in 2017 for 13.4 billion US dollars. In addition to some bookstores, the company makes a large part of its offline sales of over 4 billion US dollars with approximately 475 supermarkets.

Amazon Facts and Figures 4

5.) Facts and figures about Amazon Germany

After Amazon dominated the American market, it was about to expand into other countries! Meanwhile, the online marketplace is represented in 14 countries, including China, India, and Australia.

Amazon’s parcels will be distributed to 13 logistics centers in Germany, and more are planned. If you are interested in a visit to a fulfillment warehouse, you can register here and get a free insight behind Amazon’s logistics backdrop.

In Germany alone, more than 20,000 employees ensure that over 44 million customers can choose from over 237 million products every day. More than 17 million German customers benefit from Prime shipping, with which delivery in 1–2 days is easily possible.

Amazon’s unique service also explains the company’s enormous growth: In 2010, sales in Germany were still 5.33 billion US dollars. In 2020, it was four times higher with over 22 billion US dollars.

Amazon is gaining increasing reach in Germany! In 2020, Amazon posted a sales share of 58% (Amazon Own Trade (Amazon Marketplace) in the entire online retail sector. With 8% of Amazon’s total sales, Germany is the most critical single marketplace after the USA (69%).

The extensive offer ensures that Amazon customers access the online marketplace 41 times a year. Forecasts also indicate an annual increase of approximately 13%.

Especially before Christmas or events like Prime Day, the sales figures for Amazon Sellers are skyrocketing once again. Amazon generated on Prime day 2019. the most significant daily turnover in its company history!

For FBA Sellers, this tremendous growth is, of course, extremely lucrative. As more customers arrive and order more and more, demand increases in each category. Sellers benefit from higher sales – and customers benefit from more choice! Amazon FBA has enormous potential when it comes to the right approach.

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