PROJECT REPORT ON

PERFORMANCE OF AMAZON
INDEX

CHAPTER-1
1.INTRODUCTION
1.2 Scope
1.3 Objectives
1.4 Research and Methodology
1.4.1 Samples and Design
1.4.2 Limitations

CHAPTER-2
2. COMPANY PROFILE
2.1 History of the company
CHAPTER-3
3. DATA ANALYSIS AND INTERPRETATION
CHAPTER-4
4. SUMMARY AND CONCLUSION
CHAPTER-5
5. BIBLIOGRAPHY
 CHAPTER: 1

INTRODUCTION:

The project work entitled on THE PERFORMANCE OF MANAGEMENT

AT AMAZON. Management’s basic job is the effective utilization of human
resources for achievements of organizational objectives. The personnel management
is concerned with organizing human resources in such a way to get maximum
output to the enterprise and to develop the talent of people at work to the fullest
satisfaction.

Employee motivation is one of the major issues faced by every organization. It

is the major task of every manager to motivate his subordinates or to create the ‘will
to work’ among the subordinates. It should also be remembered that a worker may
be immensely capable of doing some work; nothing can be achieved, if he is not
willing to work. A manager has to make appropriate use of motivation to enthuse the
employees to follow them. Hence this studies also focusing on the employee
motivation among the employees of AMAZON.

The data needed for the study has been collected from the employees through
questionnaires and through direct interviews. Analysis and interpretation have been
done by using the statistical tools and data are presented through tables and charts.

1
 NEED FOR THE STUDY

In an age concerning intense competition yet globalization, corporations bear arrives

according to recognize the value of strategic practices within gaining an aggressive
potential on competitors. A well-designed performance management dictation be
able lead a fundamental role among streamlining the things to do regarding an
organization’s employees after gain the ultimate commercial enterprise mission or
vision. Performance management is a useful device for aligning whole important
organizational applications or subfunctions so the focal point is of attaining the
organizational goal.

Managing servant overall performance is certain of the close hard challenges

agencies rear today, as much that depends totally on the commitment, capability yet
clarity of officiary performance. If managed effectively through a well-planned
reward practice yet comments mechanism, an overall performance management
regulation executes glorify as like an important device because of officiary
inspiration then development. The need according to disseminate a robust
performance administration provision arose throughout the duration then the usual
overall performance appraisal mechanism started out in conformity with fail then its
limitations surfaced. The overall performance rating system over the previous length
lacked objectivity as much diameters then performance measure parameters have
been not clearly targeted then the accent was once on feature as a substitute then
behaviours yet little goals. As a result, employee morale or labour motivation had
been negatively affected appropriate in limitation of the lack about a transparent
comments mechanism and the need regarding man involvement of the entire rating
process. An overall performance management regulation overcomes the drawbacks
of the usual overall performance appraisal system by way of preserving a futuristic
strategy rather concerning evaluating officiary previous contributions in imitation of
examine man performance.

Performance administration is a strategic tool and is holistic between characteristic

as like such permeates whole things to do over the employer to that amount relate in
accordance with the management about the individual, the group yet the universal
organizational performance. The process is vital or absolutely important because
agency because that is in relation to organizing a culture within which persons yet
teams can outdo by continuously improving into phrases on competencies then
business processes.

2
SCOPE OF THE STUDY

The research discipline would stay undertaken in accordance with instruction yet up
to a document of the select employees, as proposed by using the company’s
performance administration system. The lookup learning would dimension nice
overall performance based on usual awareness, expectation and employee pride yet
dissatisfaction due after the offer on quite a number sort of incentives and officiary
morale certain so they are provided by the company’s overall performance
administration system.

3
OBJECTIVES OF THE STUDY:

Study the manner or apprehend the value of overall performance administration

dictation among AMAZON INDIA which synchronizes worker overall performance
between order in conformity with fulfil labour efficient.

• Analyse among detail the performance management regulation regarding

AMAZON INDIA or its effectiveness.

• Analyse the troubles encountered by means of the assessor or the assessors in

that system.

• Analyse the steps via the evaluators in imitation of enhance the overall
performance concerning the evaluators.

• Study the processors yet strategies of existing of overall performance

management systems.

• Identify the effects or performance appraisement strategies of servant

performance.

• Study overall performances assessment techniques; Employee performance;

Overall performance incentives and worker morale.

4
RESEARCH METHODOLOGY

The lookup layout within my law was the exploratory research additionally
recognised as much the study lookup design.

The most important objective over my study was in imitation of get people’s
opinions in relation to the performance appraisal law or the problem so much
reviewers and appraisers face.

The lookup graph into my instructions was once flexible to supply possibilities in
conformity with have a look at distinctive elements on the hassle at hand.

TYPES OF DATA COLLECTED:

• Principal: First-hand statistics used to be received out of personnel through

questionnaire yet non-public interviews.

• Secondary: Internet information has been amassed for higher grasp then
organization manual.

5
SAMPLES AND DESIGNS:

• Sampling design is an essential tool for data analysis, market research and
anyone who needs to use data to conduct hypothesis tests.
Sampling design has gained much more importance in the age of big data.
•
DESIGN AND ANLAYSIS provides a modern introduction to the fields of
• survey sampling intended for a wide audience of statistics students.

6
LIMITATIONS OF THE STUDY:

• Little cooperation from the partial humans due in imitation of a conservative

spirit.
Some humans don’t hold epoch to answer.
•

• Sometimes human beings do not tell the truth and admit such out just for fun.

• The project file was designed concerning the belief up to expectation the facts
supplied by way of respondents is correct.

• Respondents furnished data into haste therefore precision cannot lie expected.

• The discipline can’t remain generalized because a lengthy period as much

worker activity choice exchange rapidly over time.

• Many employees are reluctant in accordance with disclose the actual

information, hence the researcher had after proceeded with sketchy
information.

• The conclusions were more often than not based concerning the information
furnished with the aid of the respondents and into much cases, subjective
bank can’t stay definitely dominated out.

7
 CHAPTER:2
COMPANY PROFILE:

AMAZON is an American Multinational Technology Company which focuses on e-

commerce, cloud computing, digital streaming and artificial intelligence. It has been
referred to as one of the most influential economic and cultural forces in the world
and is one of the world’s most valuable brands.
Amazon has extremely vast scope of business because it began as an online book
store became an online market place, on then began creating an own technology.
Another service Amazon provides is a subscription service amazon Prime. By
purchasing a subscription to Amazon prime customer.

Amazon.com frequently referred in accordance with absolutely as Amazon, is an

American e- commerce then star computing employer headquartered between
Seattle, Washington. It is the largest web retailer of the United States. Amazon.com
commenced as an online bookstore, then branched out to promote DVDs, Blu-rays,
CDs Video Downloads/Streaming, MP3 Downloads/Steaming, Audiobook
Downloads/ Steaming software, video games, electronics, clothing, furniture, food,
toys then jewellery. The agency also produces client electronics products, inclusive
of Amazon Kindle e-book readers, Fire tablets, Fire TV, yet Fire phone, yet is the
world’s greatest company concerning planet infrastructure {IaaS} service. Amazon
additionally sells some low- end products as USB cables below its domestic
manufacturer Amazon Basics.

Amazon has analysed retail websites because of the US, UK & Ireland, France,
Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil, Japan, China, India
then Mexico. Amazon also offers worldwide shopping in imitation of sure sordid
countries because of partial over its products. In 2011, announced choice in
conformity with begin their websites in Poland and Sweden.
In 2015 Amazon overtook Walmart as much the nearly treasured retailer within the
United States through want capitalization.
Amazon was founded by Jeffery Bezos. He is an entrepreneur, media proprietor,
investor, computer engineer. He is the founder and executive chairmen of Amazon
when he previously served as the president and CEO, with a net worth of around
182 billion as of April 2022 Bezos is the second wealthiest person in the world.
Amazon was founded from his garage in Washington on July 5 1994, regarding
through such as Bezos known as its “regret minimization framework” who

8
described its efforts to defend off regrets for not participating in the Internet
commercial enterprise growth before at some point of time.

Jeff Bezos selected the order Amazon while looking the dictionary and selected
Amazon due to the fact it used to be an “exotic yet different” place, just like it meant
because of his store; the Amazon River, he noted was once with the aid of a long
way the “biggest” stream into the world. Bezos emphasized its tip begin into
building a bread, effective reporter. There is nil between mannequin as can’t keep
copied upon time. But know McDonald’s has been copied and that nevertheless
wrought a massive, multi-billion greenback project company. A bunch about that
comes beneath in accordance with the honour concerning the brand. Brand names
rely extra on-line then they are between the bodily world. Additionally, an order
establishing together with “A” used to be desired due in imitation of the possibility
over it taking place at the pinnacle regarding somebody alphabetically order list.

After analysing the report regarding the after of the internet that predicted 2300%
annual growth of web commerce, Bezos tooled a listing on 20 products as should lie
marketed online. He narrowed the listing down according to what he considered in
conformity with stay the five nearly hopeful products who included close- fitting
disc, computer hardware, software, movies and books. Bezos subsequently
determined up to expectation his modern commercial enterprise sell books online,
due to the intense world require because literature mangy costa because books or the
great range over titles accessible of print.

The corporation started outdoors namely an online bookstore thinking spurred

through dialogue with Jhon Ingram Book so nicely as much Keyur Patel any still
owns a stake of Amazon. Amazon used to be capable after get right of entry to

9
Ingram’s whole sale book. In the first couple months concerning operation Amazon
brought among entire 50 states than 45 countries.

Amazon was once included among 1994 between Washington state. In July 1995 the
company started its employment or sold its advance e book ever. Fluid concepts or
Creative Analogies with the aid of Douglas; computer models regarding the
Fundamental Mechanism concerning thought. In October 1995 the organization
introduced itself in accordance with the public. In 1996 it was reincorporated
between Delaware. Amazon issued its preliminary populace imparting on shares
under the ticker image.

Amazon initial business format was once unusual that did not count on in imitation
of flip a profit because 4 in accordance with five years. This sloe increases born
shareholders to whinge as the business enterprise was once no longer achieving
profitability rapidly ample in accordance with uphold investing, yet even surviving
of the lengthy term. When the dot- com bubble fission at the turn regarding the
twenty first century, defeating dense online businesses, Amazon survived at grow
beyond the bubble fission in conformity with be a predominant player of online
sales. It eventually performed its preceding profit in the fourth step of revenues over
1 billion. In 1999-time document named Bezos person concerning the Year
recognizing the company’s attainment in popularizing online shopping.

Barnes & Noble sued Amazon over May 12, 1997, alleging so Amazon’s claim
according to lie “the world’s largest bookstore” was false. Barnes then noble said,
“[it] is not a book shop at all. It’s a book broker.” The law was afterwards correct
oversea of court docket or Amazon endured in conformity with redact the identical
claim. Walmart sued Amazon of October 16, 1998, alleging that Amazon stole
Walmart’s walks of life secrets and techniques by hiring former Walmart executives.
While this action was once additionally close in court, this induced Amazon to
implement inner restrictions yet reassignment over ancient Walmart executives.
ACQUISTIONS AND INVESTMENTS

This listing is incomplete; thou be able help through extending it.

1998
• Planet All, a name lower back employ based between Cambridge,
Massachusetts
• Junglee, an XML statistics excavation start- up based of Sunnyvale,

10
• Bookpages.co.uk, a UK on line e book retailer, who grew to be Amazon UK
concerning October 15, 1998;

• Tele book (www.telebuch.de) was Germany’s preceding online bookstore,

that has emerged as Amazon’s German on line store;
Inter-net Movie Database (IMDb).
•

1999

• Alexa Internet, a database company;

• Accept.com, an economic function company;

• Drugstore.com 40% funding in 1999, enlarge among stake among 2000 sale of
feat in imitation of Walgreens within 2011 for a loss about 90%;
Geo-work, wireless communication company, acquisition over a depth stake;
•
Pets.com, offered a fifty- four percentage stake.
•

2003

• The online tune retailer CD Now. In 2011, the cdnow.com internet site used to
be out concerning persimmon or among utilizes by using any other company.

2004

• Joyo.com, a Chinaman e- commerce site.

2005

• Book Surge, a print- on- demand company

11
 • Mobipocket.com, an on- demand DVD distributor primarily based on among
Scots Valley, California.
• Small parts. Com, a provider about manufacturing components.

2006

• Shop bop, Madison, Wisconsin- based fashion designer garb then addons
retailer for women.

2007

• Dpreview.com, a London-based digital photography criticism site; Brilliance

Audio, the unbiased publisher regarding audiobooks between the United
States.

2008

• Audible. Com; Fabric. Com;

• Mojo stamp office;
• Abe Books;

2009

• Zappos, an online boot then apparel retailer

• Lex cycle,
• Snap Tell, a picture matching start up.

2010

12
 • Touch eco.,
• Woot,
• Toby press;
• Buy VIP

2011

• Romantic film,
• The depository on the book,
• Pushbutton.

2012

• Kiva systems,
• RUE DES ECOLES,
• EVI.

2013

• Inova software,
• Good reading,
• LIQUAVISTA.

2014

• Double helix sets,

• Comixology,
• Twitch.

13
2015

• Annapurna labs, a frivolity dressmaker based totally among YOKNEAM,

Israel.

INVESTMENTS:

2018: Engine yard, A ruby- on- rails podium as much an employment company.

2010: Living social. A native provides site.

2014: Winning about the bay area at a public.

SUBSIDIARIES:

2004: A9.com. A company centered regarding discovering yet growing innovate

technologies.

2004: Lab 126, developers on built in customer electronics certain as much kindle.

2007: Brilliance audio. The biggest independent audio book cause of the Unite States.

AMAZON HAS ON 40 SUBSIDIARIES, SUCH AS ZAPPOS, DIAPERS.COM,

KIVA SYSTEMS, GOODREADS TEACH STREET, AND IMDB

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 ISSN 2056-6018
PEST analysis helps companies to consider the external environment, think strategically, identify
Vol. 11, No. 2, 2023
analysis, the PEST analysis does not analyze internal factors. However, when performing the
SWOT analysis, the external environment is not thoroughly evaluated as in the pest analysis.
Disadvantages of PEST Analysis:
The dynamic nature of the external environment requires a continuous performance of the PEST
analysis, making it a dynamic tool. Also, the knowledge of the researcher might be limited
depending on the information available and assumptions taken. Hence, the PEST analysis needs
to be revisited continuously to assessed current conditions.
EVALUATION OF AMAZON.COM BUSINESS TECHNIQUES USING SWOT ANALYSIS

The SWOT analysis of Amazon.com is as follows: Strengths:

Strong Brand Name:

According to Business Strategy Hub (2022), Amazon.Com has more than 310 million active
users and about 200 million prime subscribers around the world. It is a global giant in e-
commerce, with a diversified business portfolio, a strong position and a successful brand image.
A strong brand image leads to brand equity, which is an intangible asset (Etim & Uford, 2019).
Top Brand Valuation:
According to Interbrand (2022), Amazon.Com has been ranked the second-best global brand, in
2021, with a brand value of 249B$ and a positive growth of 24%. This contributes to the
company’s growth and sustainability (Thomas, Ukpong & Usoro, 2022).
Customer-Centric Approach: Amazon.Com has maintained a track record of continuous exponential
growth from its incorporation in 1994 by Jeff Bezos and reincorporation in 1996. According to the
founder, the company focuses on these four principles: Customer obsession rather than competitor
focus; commitment to operational excellence; Passion for innovation; and Long-term thinking
(Amazon.Com, 2019). Amazon.Com began as an online bookstore but has continuously expanded
its operation both pre and post Covid 19 through organic growth and numerous acquisitions. It has
grown to become the most customer-centric company in the world and a
place where customers can buy anything (Amazon.Com, 2019).
Differentiation, Lean Culture and Innovation:
Amazon.Com has been the leader in innovation by encouraging creative ideas and innovative
additions. It also differentiates its service delivery through innovations like the drone delivery
service and Withings Aura Smart Sleep System (Guta, 2020). These disruptive technologies were
available pre-Covid 19 and during Covid-19. They are promoted through the Amazon Launch
Pad which provides a platform for new products to be launched to customers ever before they are
available elsewhere. This also contributes to the company’s excellent performance over the

years. Amazon.com has also adopted a lean culture to eliminate waste at all levels
(Amazon.Com, 2022).

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Delivery: Customers are interested in having their orders delivered to them in safe conditions as
Vol. 11, No. 2, 2023
quickly as
possible. Amazon.com has continuously created a consistently reliable world-class shopping
experience next to none for its customers. It takes on the delivery responsibility through its
fulfillment by Amazon.Com (FBA) motto to ensure quick delivery through its advanced
logistics, robotic innovative technology and 175 fulfillment centres worldwide operating 24
hours. In the end, customers have their products delivered fast and sellers are spared the rigours
of picking, packing and shipping of products (Jordan, 2020).

Higher Net Sales due to the COVID-19:

Işık, İbiş and Gulseven (2021), in their study of the impact of covid-19 pandemic on Amazon’s
business, established a positive correlation between customer demand and covid-19 cases.
The global lockdown, quarantine measures and safety requirements during the pandemic which
meant had to stay indoors, led to increase in the sales figures of Amazon.com. Mattia (2021),
also reports that the negative effect of the global shutdown experienced by many companies
the world over did not extend to top online companies like Amazon.Com . Accordingly, the e-
commerce enterprises recorded double digit revenue growth with gross merchandise sales gr
cyeo
leawar”.ng
i a at
29% rate.He asserted that despite the challenges with delivery and custom
ra nce, these e-commerce companies “experienced four to six years of growth over a single

Weaknesses:
Shrinking Operating Margins in Some Segments of the Business:
The international segment of Amazon.Com has recorded a net loss for a long period of time.
According to Amazon.Com’s Annual Report, (2020), this is primarily due increased shipping and
fulfillment costs due in part to COVID-19. The cost is expected to continue to increase due to
COVID-19 related costs. Figure 1 below shows that though Amazon.Com has recorded an
increasing net profit on its Amazon Web Service the international segment has not been doing
well.
Annual operating income of Amazon from 2014
to 2021

20000
15000
Axis Title

10000
5000
0
-5000
2014 2015 2016 2017 2018 2019 2020 2021
North America 360 1,425 2,361 2,837 7,267 7,033 8,651 7,271
International -640 -699 -1,283 -3,062 -2,142 -1,693 717 -924
AWS 458 1,507 3,108 4,331 7,296 9,201 13,531 18,532

Figure1: Annual operating income of Amazon.Com from 2014 to 2021

Data Source: Coppola (2022).

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Tax Avoidance Controversy: Vol. 11, No. 2, 2023
Given that Amazon.Com operates in different jurisdictions, this subjects the company to tax
assessments against it. Audit findings or tax controversies can result in a material reduction in the
reported performance in in the period or periods for which that development occurs (Ukpong &
Ukpe, 2023), as well as for prior and subsequent periods. For instance, president trump had
criticized the organization on taxes, as well as tax avoidance controversies in Japan, UK and US
(Business Strategy Hub, 2022).
Employees’ Treatment and Workplace Conditions:
Lieber (2018) wrote about poor treatment of employees and workplace condition in August
2018. These include bad air conditioning, restricted bathroom breaks, and constant video
surveillance which all leads to poor media coverage.
As Jeff Bezo’s wrote in his 1997 letter to shareholders:
“You can work long, hard or smart, but at Amazon.com you can’t choose two out of three”
(Amazon.Com, 2019. p.8), the statement shows Amazon.Com ’s obsession with customers at the
expense of staff welfare which further supports the media outrage against her.
Declining Consumer Safety:

Amazon.Com’s large offerings of products have made it increasingly difficult for the retailing
giant to properly vet all its products to ensure safety and high quality of products. Recently,
The U.S. Environmental Protection Agency (EPA) recently asked Amazon.Com to remove
several unsafe products on its platform (Reuters Staff, 2020). Amazon.Com alleged that these
products were listed by third party sellers, which shows the porosity of their site.

Opportunities
Increasing overall and Urban Population: With increase in world population and internet users the
market for Amazon.Com has further
increased. According to Kemp (2022), About 4.95 billion people all over the globe make use of the
internet in January 2022 and the number of mobile phone users grew by 95million in 2021. This
equals 62.5 percent of the world’s population. For Amazon.Com this is an exceptional opportunity to
leverage on the increased number of internet users and capture new markets. Covid-19 Related
Demand for Online Products:
According to Gowdra Shanthakumar, Seetharam, and Ramesh (2020), the onset of the pandemic
and the resulting lockdowns led to panic buying and stockpiling among customers. This also
resulted in more people relying on online products. Amazon.Com took advantage of the
opportunity to expand its delivery hub to 1500 across the United States (Amazon.Com, 2021).
Backward Integration:

As recommended by Saumya (2021), Amazon.Com can increase its product lines through the
Amazon Basics into new segments. Amazon Basics brands generic items and sells them. Asides
from brand promotion, such integration, would offer differentiated products, backed with
customer-demanded features (from customer data analytics), and improve profit margins
emanating from earnings from product sales and not just distribution.

17
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New Markets: Vol. 11, No. 2, 2023
Amazon.Com is increasing taking advantage of its position as the pioneer online retail company. It
took advantage of the cloud computing market, when it was considered a risk in 2006 (Sauer,
2022). Currently, Amazon.Com is already announcing Joint venture agreements, with British retailer
Marks and Spencer announcing a joint venture with Amazon.Com to sell its products and service
online. Other recent collaborations have been with Target, Toys-R-Us and the NBA. Amazon's new
Luxembourg-based division aims to provide tailored services to retailers as a technology service
provider in Europe, (Missouri Center for Career Education-MCCE, 2017).

Threat
Competition: According to Amazon.Com (2021), the competitive factors in the future will be price,
selection,
convenience, speed, reliability, and flexibility. Given that the Internet simplifies competitive
entrance and comparison shopping, new entrants can compete against Amazon.Com offer lower
prices and flexibility. Also, other companies may enter mergers and strategic alliances to improve
their competitive advantage and better cater for user needs. As a result of competition, our product
and service offerings may not be successful, we may fail to gain or may lose business, and we may
be required to increase our spending or lower prices, any of which could materially reduce our sales
and profits.
Adverse Effect of Foreign Exchange Rate:
Given that Amazon.Com reports its financial results in U.S Dollars, its international stores and
product and service offerings are subject to foreign exchange rate fluctuations. As a result of
these fluctuations, operating results may differ materially from budget. Also, cash and cash
equivalents held in foreign currencies may be materially impacted on conversion. For instance,
changes in foreign currency exchange rates impacted International net revenue by $(2.4) billion
and $1.7 billion in 2019 and 2020 (Amazon.Com, 2021 and Peachy Essay, 2021).

Government Regulation:
Amazon.Com operates in several countries of the world and as such is subject to different
jurisdictions. It is also subject to various formal and informal investigations and audits by regulators
around the world. From its latest annual reports, various regulators have opened investigations to
determine if it is violating competition rules. Where such investigations, regulations, laws,
interpretations and decisions lead to unfavorable outcomes, Amazon.Com may be subjected to
substantial fines or even criminal charges which in turn reduce the demand for
her products and services, damage her reputation, hinder growth, or otherwise have a substantial
consequence on organization’s operations (Adi, 2021).

Shrinking Product Life Cycle:

The life cycle of gadgets and other innovative products from Amazon.Com are continuously
shrinking as new ones continuously phase out existing innovations. Hence Amazon’s Sales and
Marketing faces the threat of shrinking product life cycle. This would in turn lead to research and
development expenditure, higher marketing costs and lower brand loyalty. Also, Amazon.Com must
strive to shorten the Payback period before innovative products get outdated (Oberoi, 2019).

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PEST ANALYSIS OF AMAZON.COM

Vol. 11, No. 2, 2023
PEST analysis is the analysis of a company’s business external environment. A business external
environment has the capacity to influence a company’s sales and ultimate survival in the
business environment. Therefore, it is recommended that a company keeps trail of its external
environmental factors to adapt where necessary. Below is the PEST analysis of Amazon.Com:
Political Environment
Government Regulation (Threat)
The international segment of Amazon.Com is exposed to government regulations affecting its
products and services and its ability to compete. These include trade protection measures for
indigenous companies, export duties and quotas and custom levies and restrictions on foreign
ownership. For instance, The People's Republic of China ("PRC") and India regulate Amazon.Com
and its affiliates' businesses and operations through guidelines and license requirements that
discourage foreign investment in and operation of the Internet, IT infrastructure, data centers,
retailing, delivery, and other sectors; Internet content, and the
marketing of media and other products and services (Amazon.Com , 2021). These are threats to
Amazon.Com Political Instability Due to War and Terrorism (Threat)
Wars, terrorism and political tensions among countries affect the activities of Amazon.Com. For
instance, Amazon.Com has suspended all shipment of retail products to clienteles in Russia and
Belarus and stopped providing customers in Russia with access to its streaming service Prime
Video (Catherine, 2022 & Ani, 2022). Hence, a politically stable hub such as Canada and the
United States present an opportunity for Amazon.Com.
Economic Environment
Restriction on Fund Repatriation and Investment (Threat)

With various countries placing restrictions on the repatriation and investment of funds from their
counties, Amazon.Com may face problems when trying to repatriate funds which may lead to fines
and reputation damage.
Also, there may be limits on the amount of foreign currency exchange, making it difficult for the
local currencies to be converted to USD. This is a threat to Amazon.Com. For instance,
according to INS Global (2018), fund repatriation from the People’s Republic of China, may still
be stopped even if all standard requirements are made by the State Administration for Foreign
Exchange. Also, Home countries are introducing limitation on foreign direct investments (Golub,
2003).
Liquidity Issues (Threat)
As a result of the Covid-19 pandemic, most companies have had to struggle to survive, this could
subject Amazon.Com to shorter payables days and longer receivable days, which in turn result in
a negative impact on cash flow. This presents a threat to Amazon.Com as the earlier the
inventories are converted to cash the better and the shorter the Cash Conversion Cycle (Hayes,
2020).

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Sociological Environment
Vol. 11, No. 2, 2023
Lower levels of use of the Internet (Threat)
Data from the U.S Census Bureau's Population Division shows that by 2030, when all boomers
will be older than 65, older Americans consist of 21 percent of the populace, up from 15 percent
currently (Vespa, Armstrong, and Medina, 2018) ), With this growing number of older adults, the
use of the internet for purchase may reduce, which constitutes a threat to the profitability of
Amazon.Com . Increasing Online Buying Habits (Opportunity)
Amazon.Com benefits from the increased willingness of people to shop online during the Covid
19 crisis. This trend was seen to be on the increase during the Covid-19 (Uford, 2021), leading to
staggering revenue increase for Amazon.Com (Saumya, 2021).
Technological Environment
Rapid Technological Obsolescence (Threat and Opportunity)
The life cycle of gadgets and other innovative products from Amazon.Com are continuously
shrinking as new ones continuously phase out existing innovations. Hence Amazon’s Sales and
Marketing faces the threat of shrinking product life cycle. This would in turn lead to research
and development expenditure, higher marketing costs and lower brand loyalty However, in the
context of this PEST analysis, such a condition is also an opportunity for the
business to continuously innovate. For instance, innovative technologies can optimize online
retail productivity and reduce operational costs (Oberoi, 2019; Amazon.Com, 2021).
Increasing Rates of Cybercrime (Threat)
Amazon.Com collects and stores huge amounts of data. Any information security breach may
result in litigation, liability, or regulatory action. Amazon.Com has admitted to such security
breaches in the past and the risk increases everyday as fraudsters invade the online space. For
instance, in advance of the Amazon.Com Prime Day, 2022, Check Point observed a 37% increase
in Amazon-related phishing attacks in early July compared with the daily average of the previous
month. Furthermore, about 10% of the 1,900 new domains using the term
“Amazon” in June, were found to be either malicious or suspicious (Whitney, 2022). It would
also discourage potential customers from using their stores and services, and harm the business
and reputation.
FINANCIAL ANALYSIS OF AMAZON.COM
Ratio Analysis The financial analysis evaluated profitability, liquidity, solvency, and efficiency of
Amazon.com. Results from Walmart, a major competitor against Amazon.Com will be used to
benchmark its
performance (Morgan, 2022)
Walmart, whose financial performance will be used as a benchmark in this work has a year end
of January 31st, hence, the comparable statements are for the period ending, January 31st 2020,
2021 2022 while Amazon.com’s are for the period ended December 31st 2019, 2020 and 2021.
i). Profitability Ratios

Net Profit Margin

The Net Profit Margin of Amazon.com has soared during the period under review, while Walmart saw
dwindling margins at the peak of the Covid-19 Pandemic. This is because, while brick and mortar
retail stores like Walmart, had to shut down or reduce their operations, during the lockdowns, top
online companies like Amazon.Com flourished during this period as people
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depended on the web for purchases (Mattia, 2021). Also, Amazon.Com’s strategic alliances with
Vol. 11, No. 2, 2023
the Covid-19 Pandemic and sustain a low-cost structure, which resulted in soaring profits
(Business Strategy Hub, 2022).
Furthermore, Amazon.com’s diversified business portfolio helps it to remain profitable in spite
of market changes. For instance, in Q4 2021, when the international segment and North America
segment of the Amazon.Com business portfolio reported losses, its Amazon Web Service
reported a huge profit that compensated for the losses in the other segments (Johnson,2022).
Also, a major driver of the company’s sustained excellent performance was its decision to take
advantage of the new cloud computing market and venture into the Amazon Web Service which
has now proven to be the cash cow (Sauer, 2022). Figure 1 showed that though Amazon.Com
has recorded an increasing net profit on its Amazon Web Service and the North America
business, the international segment has been struggling since 2014 (Coppola, 2022).
Due to the online nature of its business, Amazon.Com eliminates the cost of maintaining
physical stores and staff. It also leverages on economies of scale to control its cost and inventory.
Also, Amazon.Com forms strategic alliances with many companies such as Evi Technologies,
Thalmic Labs, Shoefitr, The Orange Chef etc., thus achieving a robust value chain which also
helps in sustaining a low-cost structure (Business Strategy Hub, 2022). Being a cost leader
increases the profit margin of Amazon.Com and by implication its performance.

Net Profit Margin (%)

7%
8% 6%

6% 4%
3% 2% 2%
4%

2%

0%
Amazon Walmart

2019 2020 2021

Return on Capital Employed (ROCE) ROCE of Amazon.Com has consistently increased during the
period under review, irrespective of the pandemic, while Walmart saw a decline in its ROCE within
the same period. The implication is that its profits have flourished, mainly because of its ability to
increase market share and leverage economies of scale (Amazon.com,2022). This large market
share then allows it to gain a high bargaining power towards her suppliers and further increase her
profits (Wei, 2021).
Given the significant increase in the online sales during the covid 19 crisis, Amazon’s brand has
become increasingly popular around the world (Business Strategy Hub,2022). Through data

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analytics the company has taken advantage of this information to establish physical stores around
Vol. 11, No. 2, 2023
Also, Mukerjee (2013) mentioned that the customer-centric strategy of Amazon.Com, has led the
company to venture into new businesses and increase its market share, leading to customer
satisfaction, increased number of customers, customer loyalty as well as higher sales (Uford,
2017).
The long-term impact is a steady growth in the ROCE.

ROCE

15% 11% 12%

8% 10% 9% 9%
10%

5%

0%
Amazon.Com,INC Walmart,INC

2019 2020 2021

ii). Liquidity Ratio Analysis

Liquidity analysis shows the company’s ability to meet its short-term financial liabilities using
available cash (Qadeer, 2013).
Quick Ratio
The current ratio compares the company’s current asset to its current liabilities, with the aim of
determining its short-term solvency (Tracy, 2012). Since this ratio is affected by the inventory
method used in different companies, the Quick Ratio eliminates the effect of inventory, hence the
choice of the quick ratio for analysis. From the graph below, Amazon.Com’s quick ratio
averaged 0.9, while Walmart’s was 0.3 over the last three years. The higher quick ratio of
Amazon.com compared to Walmart and the industry average of 0.7 based on statistics on
Readyratios (n.d.), indicates that the company has uninterrupted flow of cash to meet to run its
operations in the short run. This is mainly because of the retail giant’s ability to adopt a lean
approach that eliminates waste at all levels (Ehrenfeld, 2020). There is also an intentional drive
by Amazon.com to source goods directly thereby reducing the amount it pays for goods
(Amazon.Com, 2022). Thirdly, Amazon.com, goods are hardly kept in inventory as it continues
to engage third party sellers and improve its delivery service. This reduces the risk of the
company to run out of cash to meet her financial obligations (Kale, 2021). Amazon.com also has
an unbeatable logistics network that facilitates quick delivery. This system is technology driven,
with features that identify fast selling items and directs warehouse staff with radio signals and
voice technology (Kha, 2000).
All these strategies have led to Amazon.com’s ability maintain a higher quick ratio than Walmart
and other competitors.

22
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Vol. 11, No. 2, 2023

iii). Solvency Ratios Debt-Equity ratio

The Debt-Equity ratio of Amazon.Com averaged 36% in the last three years while Walmart’s
was 46%. This shows more security for the Amazon.Com shareholders than the Walmart
shareholders as it funds its operations more from shareholder funds which are less risky than
debt (ACCA, 2020). This is driven by that Amazon.com’s ability to attract more shareholders as
a result of its strong position and successful brand image (Business Strategy Hub, 2022).
Secondly, Amazon’s non- payment of dividend over the years has helped it grow its equity,
thereby reducing the need for
debt (Backman, 2022). The reduced debt further shield’s the company from interest risk and
currency fluctuation risk associated with debt.

Interest Cover
The interest cover shows that Amazon.com can meet it interest obligation over 12 times a year
versus Walmart which can only meet its interest obligation 10 times over the same period.
Hence, Amazon.com has a better interest coverage than Walmart. One driver of the high interest
cover is the fact that Amazon.com has continuously leveraged its online presence to increase
sales before and during the pandemic and the resulting lockdowns, as customers engaged in
panic buying and stockpiling (Gowdra Shanthakumar, et.al 2020). This results in higher profits
to cover interests.
Amazon.Com has also leveraged its strong brand name, which is a business’ important intangible
asset (Uford and Duh, 2021), to access debts with lower interest rates (Amazon.Com, 2022). It
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has excelled in this strategy so much that despite Walmart’s debt extinguishment in 2021,
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iv). Efficiency Ratio Working Capital Cycle

Amazon.com has operated a negative working capital cycle in the period under review, meaning
she collects cash faster than she paid off her suppliers (Corporate Finance Institute. 2022). Worthy
of note was 2020 (The height of the Covid-19 Pandemic) where it collected cash about 53 days (vs
32 days in 2019) before it had to pay its suppliers while Walmart saw an increase 7 days from
previous years to pay suppliers 9 days before receiving cash. Hence, the working capital cycle of
Amazon.Com is better for the company’s liquidity than Walmart’s.
One of the factors responsible for the negative working capital structure is Amazon.com’s strong
brand name which gives it a high bargaining power versus suppliers, which allows her to
negotiate longer payable terms (Wei, 2021).

Other factors responsible for the favorable working cycle of Amazon.com are the cash on
delivery of her products and taking advantage of more third-party deals (Kale, 2021). This free
cash allows it to continue to grow as it can invest in new ventures with the free cash (Amazon,
2022).

WORKING CAPITAL

50.00
0.00
DAYS

-50.00
-100.00
2019 2020
Amazon -31.76 -53.06
Walmart 2.03 9.98

CONCLUSION
The main aim of the project was to analyze and evaluate the business and financial performance of
Amazon.com, a company that performed exceptionally well over the last three years with a

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critical analysis of the reasons for its success. The reason for the choice of Amazon.Com was
Vol. 11, No. 2, 2023
profit margins and quick ratio. Further reasons for choosing Amazon.Com were because of the
unanimous agreement within available literature and data that it is the leading online e-
commerce market globally, with a steady growth rate over the years, and the highest ever
revenue growth within its sector. A comparison was then performed against Walmart to show
Amazon’s superior performance.
The analysis was divided into two: the business analysis and the financial analysis. The business
analysis was done with the SWOT and PEST models. These revealed several strengths and
opportunities which the company is taking advantage of, based on the result of the financial
analysis. For instance, the company is already thriving in new markets such as AWS and using
its strong brand name to get low prices, longer payables days and high stock price despite its
nonpayment of dividend. Nevertheless, it also has many weaknesses and faces threats in the
environment which could be a problem in the future.
The Financial Analysis to evaluate it profitability, liquidity, solvency and efficiency ratios. The
performance was then compared to Walmart. Amazon.com showed a better overall performance
than Walmart and indeed proved the company’s ability to take advantage of its strengths and
opportunities to perform excellently while hedging against threats (such as cybercrime and
interest risks).
RECOMMENDATIONS

To sustain the successes recorded so far by Amazon.com, the following recommendations need
to be adopted:
Amazon.Com must cater for the needs of her employees to avoid complaints which can
be damaging for its already strong brand name.
The company needs to reevaluate the sustainability of its international business which
has been struggling since 2014. This may lead to divestment of some of her international
businesses.
Finally, Amazon.com must keep an eye on the competition to retain its leading position
in the future years.

REFERENCES
ACCA (2015). The strategic planning process: part 1. ACCA. Available at:
https://www.accaglobal.com/my/en/student/exam-support-resources/professional-exams-
study-resources/strategic-business-leader/technical-articles/the-strategic-planning-
ACCA process-part-1.html/ [Accessed: 10 October, 2022].
(2020). Ratio analysis. ACCA. Available at:
https://www.google.com/search?q=Ratio+analysis+%7C+ACCA+Qualification+%7C+St
udents+%7C+ACCA+Global&oq=Ratio+analysis+%7C+ACCA+Qualification+%7C+St
udents+%7C+ACCA+Global&aqs=chrome..69i57.2812j0j7&sourceid=chrome&ie=UTF-8/
[Accessed: 10 October, 2022].
Adi, F. (2021). Amazon Anti-Competition Law in the International Political Economy. Atlantis
Press, 31st May. Available at: 10.2991/assehr.k.210531.076

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Adjirackor, T., Asare, D. D., Asare, F. D., Gagakuma, W. & Okogun-Odompley, J. N. (2017).
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and Accounting, 8(14). Available at: https://www.iiste.org/
Ahsan, S. (2021). The Use of PESTEL Analysis Tool of Quality Management in the Health Care
Business and its Advantages. American Journal of Biomedical Sciences & Research,
14(6). AJBSR.MS.ID.002046. DOI: 10.34297/AJBSR.2021.14.002046/
Amazon.com (2019). Financial Statements 2018. Seattle, Washington. Available at:
https://www.annualreports.com/HostedData/AnnualReportArchive/a/NASDAQ_AMZ
N_2018.pdf/
Amazon.com (2020). Financial Statements 2019. Seattle, Washington. Available at:
https://www.annualreports.com/HostedData/AnnualReportArchive/a/NASDAQ_AMZ
N_2019.pdf/
Amazon.com (2021). Financial Statements 2020. Seattle, Washington. Available at:
https://www.annualreports.com/HostedData/AnnualReportArchive/a/NASDAQ_AMZ
N_2020.pdf/
Amazon.com (2022). Financial Statements 2021. Seattle, Washington. Available at:
https://s2.q4cdn.com/299287126/files/doc_financials/2022/ar/Amazon-2021-Annual-
Report.pdf/
Amazon (n.d). What we do. Aboutamazon.com. Available at: Amazon: What We Do (
aboutamazon.com)/ [Accessed: November 5, 2022].
Ani (2022). Amazon halts product shipments to Russia, suspends Prime Video Access. Business
Standard News. Businessstandard.com Available at: https://www.business-
standard.com/article/international/amazon-halts-product-shipments-to-russia-suspends-
prime-video-access-122031000820_1.html/ [Accessed: November 5, 2022].
Ar, S. (2019). Accounting ratios: A guide to financial ratio analysis. QuickBooks. Available at:
https://quickbooks.intuit.com/in/resources/accounting/accounting-ratios/ [Accessed 20
Oct. 2022].
Backman, M. (2022). Why doesn't Amazon pay a dividend? The Motley Fool. Available at:
https://www.fool.com/investing/2022/09/16/why-doesnt-amazon-pay-a-dividend/
[Accessed: November 5, 2022].
Baraja, L. & Yosya E. A. (2019). Analysis of the impact of liquidity, profitability, activity and
solvency on change in earnings. Indonesian Management and Accounting
Research, 17(1), p. 1. Available at: https://www.researchgate.net/publication/ [Accessed:
24 October, 2022].
Benzaghta, A., Elwalda, A., Mousa, M., Erkan, I., and Rahman, M. (2021) ‘SWOT analysis
applications: an integrative literature review’, Journal of Global Business Insights, 6(1),
pp. 55-73. DOI: https://www.doi.org/ 10.5038/2640-6489.6.1.1148/
Business Strategy Hub (2022). Amazon.Com SWOT 2022/SWOT analysis of Amazon. Retrieved
from: https://bstrategyhub.com/swot-analysis-of-amazon-amazon-swot/
Catherine, N. (2022). Amazon stops shipping products to Russia and suspends Prime streaming s
ervice amid the Ukraine war. Business Insider Africa, 10th March. Available at:
https://africa.businessinsider.com/news/amazon-stops-shipping-products-to-russia-and-
suspends-prime-streaming-service-amid/kd8ndtm/ [Accessed: 16 October 2022].

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 CHAPTER-3

DATA ANALYSIS AND INTERPRERTATION:

1.

INTERPRETATION:
53.3% of the people browse online store on their mobile phones for few times.26.7%
of the people browse the online store all most every day. This shows almost 80% of
the people are utilizing the services provided by the Amazon.

27
2.

INTERPRETATION:

33.3% of the people are choosing to shop at Amazon. According to this survey
Amazon has a tough competition in the market.

28
3.

INTERPRETATION:

48.3% of the people expecting the reasonable prices from the online shopping.

29
4.

INTERPRETATION:

67.7% of the people are satisfied with quality of the products in the Amazon online
market.

30
5.

INTERPRETATION:

This chart showing that 64.5% of the people are preferring to shop cloths and 25% of
the people are interested to buy Accessories.

31
6.

INTERPRETATION:

53.3% of the people are facing the problem from lack of quality and 23.3% of the
people facing the problem from lack of choices.

32
7.

INTERPRETATION:

63.3% of the people are liking to buy to recommend this site to other online
shopping.

33
8.

INTERPRETATION:

77.4% of the people are willing to pay in the form of cash, only 16.1% of the people
are willing to pay through online.

34
9.

INTERPRETATION:

58.1% of the people are willing to prefer for online shopping.

35
10.

INTERPRETATION:

The price of the product is most important for 58.1% of the people.

36
11.

INTERPRETATION:

53.3% of the people facing the problem from low quality of the product.

37
12.

INTERPRETATION:

51.6% of the people staying away from online shopping due to unsafety of payment.

38
13.

INTERPRETATION:

63.3% of the people are coming to know about the Amazon through internet.

39
14.

INTERPRETATION:

41.9% of the people are choosing online shopping for convenience and 38.7% of the
people are choosing online shopping for discounts.

40
15.

INTERPRETATION:

48.4% of the people are liking the discounts and 32.3% of the people are liking the
customer service provided by the Amazon.

41
16.

INTERPRETATION:

46.7% of the people are saying yes that Amazon automatically collects details about
the model make of their computer or smartphone.

42
17.

INTERPRETATION:

48.4% of the people found enough range of products.

43
18.

INTERPRETATION:

54.8% of the people are satisfied with the quality of the produts of the Amazon.

44
19.

INTERPRETATION:

66.7% of the people felt safe while sharing their card details.

45
20.

INTERPRETATION:

63.3% of the people received their products within the expected time.

46
 CHAPTER-4

SUMMARY AND CONCLUSION

Amazon has developed an unprecedented customer support only in the span of last
15 years with its unique business model of online business.
This not only allows the company to have a cutting edge advantages over the
competitors but also makes it a cost leader in its leader in its business.
It over passes all the supply chains to reach to the consumers through it innovative
e- commerce approach.

This allows the company to have a control over its distribution channel and so is
able to cut down the prices of its products.
The company hires the distribution channels and warehouses in theares where the
cost of dumping inventory is extreamly low and forward its saving to the consumers
in the form of the competitive prices.
Amazon need to keep focusing on the research and development of better and more
innovative way of service to the customer, which will not only maintains its market
leadership in the online business but also allows it to be all time favourite to millions
of its loyal customers.

The company expanded rapidly in other areas. Its Associates program, where other
aweb sites could offer merchandise for sale and Amazon.com would fill the order
and pay a commissin, grew from one such site in 1996 to more than 350000 by 1999.
Following Bezos initial strategy the company quickly began international operations
with the acquisition of online booksellers in UK and Germany. BY 1999 the company
was also selling consumer electronics, video games, software, home improvements
items, toys and games and much more.

That sustain growth Amazon.com needed mpore than private investors to

underwrite the expansion. The company was able to use its high flying stock to fund
its aggressive growth and acquisition strategy.

Although offering more types of goods broadened its appeal, it was Amazon.com
service that gained it customer loyalty and ultimate profitability.

47
Its personalization tools recommended other products to buy on the basis of both a
customers purchasing history and data from buyers of the same items. Its publishing
of customer reviews of products fostered a community of consumers who helped
each other find everythimg from the right book to the best blender.

As noted above Bezos claimed that Amazon.com was not a retailer but a technology
company. To underscore the point in 2002 the company launched Amazon Web
Service which initially offered data on internet traffic patterns, Web site popularity
and other statistics for developers and marketers. In 2006 the company expanded its
AWS portfolio with its Elastic Compute Cloud, which rents out computer processing
power in small or large increments. That same year, the Simple Storage Service
which rents the data storage over the internet becamr available.

Amazon is a customer centric company.They put more effort in improving their

system to make the experience of customer more comfortable so that keeps on
returning to the website. Jeffery who is the foundre of the Amazon. Com started this
company after seeing the use of internet increasing rapidly.

According to Bezos the company tries to solve a very hard problem by

understanding how can they serve the consumer better and thus try to convert the
problem into straight forward problem. When Bezos started his business there were
different reviews about this business like they say that they don’t have their own
products so they are a hindrance to innovation for other companies. There were
many negative reviews about the company being posted on the website but Bezos
wasn’t concerned about those comments.

According to Bezos as the company grew from nothing to a successful organization,

not only figure out how to do but what to do. And this happens as the company
grows from a one many company to large company. So as the company grows
bigger that figure out different wyas to convince consumers.

48
 Amazon (AMZN) is a more complex phenomenon than a highly successful marketplace
selling its items and enabling third-party vendors to use its platform to sell its products. It is a
multinational technology company relying on e-commerce, cloud computing, digital
streaming, and artificial intelligence. Amazon enjoys a reputation as the world’s most
influential economic and cultural force.
It is also a brand that sets the rules and commands respect even among its FAANG peers,
Meta (formerly Facebook), Netflix, and Alphabet/Google, which have demonstrated massive
growth in recent years.
Read on to see statistics testifying to Amazon’s impressive development over the years and
learn more facts about the company. The numbers in the article below demonstrate why
Amazon is rightly considered a rare and unparalleled phenomenon in the e-commerce sector
and beyond.

Facts about Amazon

There are probably few people in the world who do not know what Amazon is. Anyone who
ever searched for a product to buy online was directed to this retailer. As Amazon constantly
grabs the headlines in the news about financial markets or wealthy businesses, even those
who do not shop on the internet have still heard about Amazon’s success or Jeff Bezos’s riches.
Yet, although Amazon is constantly in the news, there are some less widely circulated facts
about the company. They are listed below: Despite starting as a bookseller, Amazon.com is a
• tech company whose business centers around simplifying online transactions for customers.
Amazon owns a wide range of products: Amazon Game Studio, Amazon Drive, a cloud storage
• application, and Amazon Web Services (AWS), a comprehensive cloud platform, used by many
technology representatives worldwide. Amazon owns the One Click trademark, patented in
1999. This patent expired in the United States on September 11, 2017, and has not been
renewed yet. Amazon owns over 40 subsidiaries and brands, the most well-known of which
• are Whole Foods, audio-book seller Audible, book review site GoodReads, and live-streaming
platform Twitch. Amazon gives money to charities through Amazon Smile. People shopping on
•
smile.amazon.com, which offers the same items and prices as Amazon, contribute 0.5% of
eligible purchases to their chosen charitable organizations. In 2012, Amazon acquired Kiva
Systems, a robotic company, for $775 million. Over 200,000 mobile robots now work in the
• Amazon warehouse network, carrying product shelves to workers and reading barcodes on the
ground for directions. Amazon has its brick-and-mortar counterpart, Amazon Books, which
integrates online and
• offline shopping. Amazon’s first physical book store opened in 2015 in Seattle, near the
University of Washington.
Amazon Statistics in 2022
• Billions of people are familiar with the Amazon brand, while millions are its customers. More
than 89% of US buyers agree that they would rather buy products from Amazon than other
e-commerce sites. As Forbes once stated, “Amazon has earned our trust by delivering the
products we want, on time, intact, in the same branded brown boxes—consistently.”

49
 As the popularity of Amazon grows at a rapid rate, many predict that soon it will steal the
show from tech giants Microsoft, Tesla, and Alphabet. The latest statistics presented below
highlight Amazon’s potential to become the number one company in the world: Amazon is
• worth over $1.105 trillion as of 2022. Having a brand value of $350 billion, Amazon is second
• only to Apple, leaving Google and Microsoft behind. In 2022, Amazon has 300 million active
users. Among these active users, 197 million people visit Amazon.com every month. Amazon
•
ships to more than 100 countries, excluding Cuba, Iran, North Korea, Sudan, and Syria. Over
• 200 million people globally have an Amazon Prime subscription. There are over 157.4 million
• Amazon Prime subscribers in the United States. Amazon Prime is available in 22 countries.
Amazon Prime video, the second-largest streaming service in the world, has over 205 million
•
subscribers. Around 25.21 billion US dollars is generated yearly from membership services. In
•
2021, Amazon Prime Day sales amounted to $11.19 billion. On average, Prime subscribers
•
spend $1,400 per year. Amazon.com receives 2.2 billion visits per month.
•
Amazon owns more than 90% market share in five product categories: Batteries (97%),
•
Kitchen & Dining (94%), Home Improvement Tools (93%), Golf (92%), and Skin Care (91%).
•
Amazon boasts nearly 50% share of the US e-commerce market, which is more than triple
•
the combined shares of its main competitors: eBay (6.6%), Apple (3.9%), and Walmart
•
(3.7%).
•
In 2021, almost 2 million SMBs operated as Amazon’s third-party sellers. Half of Amazon’s
• American partners use the FBA service, as it offers at least 30% lower shipping costs.
Every quarter of 2021, about 56% of Amazon’s revenue came from third-party sellers.
Amazon sellers earn between $26,000 and $810,000 annually.
On average, small and medium-sized businesses in the US sell more than 4,000 items per
minute.
Amazon has 1.2 million employees in 2022. Amazon employment statistics show that the
• number of employees this year almost doubled from the number registered in the fourth
• quarter of 2019 when it was 789,000.
• Amazon hired 270,000 new employees in the second half of 2021 to help provide its one-day
• and same-day delivery services.
• In 2021, Amazon’s advertising revenue was about $31 billion.
Amazon’s market cap peaked to $1.88T in July 2021.
Sources: Amazon, Statista
Statistical Information about Jeff Bezos
Jeff Bezos founded Amazon in late 1994 and was its CEO for more than 25 years, stepping
•
down from this position on July 5, 2021.
In 1997, when Amazon became a public company, Bezos’s net worth reached $120 million.
• Presently, Bezos is considered the second richest person in the world after Elon Musk:
• according to Celebrity Net Worth, his net worth amounts to $130 billion in
2022. Forbes notes that Bezos fell to No 2 for the first time in four years. He lost to Musk
because of a 3% drop in Amazon stock and generous giving of $6 billion to various charitable
causes.
•
Bezos makes around $8.9 billion a month, meaning he earns $321 million daily.
•
•

50
• Bezos’s annual paycheck is $81,000.
• Amazon’s former CEO reached the record $200 billion net worth mark in August 2020.
• Bezos benefits from his Amazon stock holdings. Since the company went public in 1997, he
• has sold around $27 billion worth of Amazon stock.
• In 2010, Bezos sold 6,000,000 Amazon shares worth $793 million.
• Bezos invested $7.5 billion in Blue Origin, a private spaceflight company that sends people to
space. In 2021, Bezos said that tourist sales to space reached $100 million worth of tickets.
In 2013, Jeff Bezos purchased The Washington Post for $250 million because he believed that
journalism is the main engine of democracy.

• Amazon Q4 2024 Earnings

• Amazon reported its 2024 fourth-quarter earnings on Thursday,
February 6, with EPS of $1.86, $0.39 better than the analyst
estimate of $1.47. Revenue for the quarter came in at $187.8B
versus the consensus estimate of $187.33B.
• “Amazon was already priced to perfection amid all the macro
tailwinds that, indeed, brought a very solid Q4 on the sales side.
While, much like the rest of the big tech world, cloud margins
improved by less than expected, Amazon shareholders should not
disregard the solid improvements on the efficiency side of the
larger operation,” said Thomas Monteiro, senior analyst at
Investing.com. “In light of that, I think the somewhat disappointing
guidance provided should not be viewed as a company-specific
issue but rather as a sober view of the several macro and
geopolitical risks that could be in the company’s short-term
horizon.
“Amid risks of an escalating tariff war, a stronger US dollar, higher
•
AI CapEx, and increasing risks of supply chain disruptions, the
company needed to stay on the safe side and tamper some of the
expectations, mainly buoyed by a phenomenal 2024 performance
altogether,” he continued. “That doesn’t imply that those risks will
necessarily materialize; however, if they do, the numbers presented
tonight show that Amazon remains solid enough to weather any
fluctuations on the macro side much better than anyone else. The
main challenge for Q1 will now be to improve the guidance on the
Cloud and AI sides, particularly by figuring out how to improve

51
some of the spending with higher efficiency models in spite of the
ongoing disruptions before the competition catches up.”

Amazon Annual Revenue

Amazon’s increasing popularity among consumers worldwide guarantees that it will continue
earning profits. Amazon forecasts its annual revenue growth rate this year will
be 12.73% and expects its revenue to reach $485,902,000,000 in 2022.
These figures are achievable partly because Amazon strongly emphasizes scientific
innovations, investing generous amounts of money in scientific research. In 2019, Amazon
put a whopping $35.93 billion into technology and content, 12.8% of its net sales. Amazon’s
research mainly focuses on advanced technologies such as AI, machine learning, cloud
computing, cashless Go stores, robotic warehouses, drone deliveries, and cyber security.
There is little doubt that, given this dedicated investment in technology, Amazon’s services
will continue improving, and its popularity will increase together with its profits. The table
below shows the inexorable upward trajectory of Amazon’s annual revenue since 2009:
Amazon Annual Revenue (Billions of US$)

Year Revenue

2009 $24,509

2010 $34,204

2011 $48,077

2012 $61,093

2013 $74,452

2014 $88,988

2015 $107,006

2016 $135,987

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 2017 $177,866

2018 $232,887

2019 $280,522

2020 $386,064

2021 $469,822

2022 $514,00

The figures in the table show that Amazon’s revenue for the second quarter was $121,234
billion, constituting an increase of 7.21% year-over-year. Amazon’s revenue for the twelve
months ending June 30, 2022, was $485,902 billion, which is a 9.61% growth year-over-year.
Amazon’s annual revenue for 2021 was $469,822 billion, constituting a 21.7% increase from
2020. The largest jump in Amazon’s revenue happened in the first year of the pandemic
when people were locked down at home and could only shop online. In 2020, Amazon’s
annual revenue was $386,064 billion, a 37.62% growth from 2019.
Sources: Statista, CNBC

Amazon Annual Revenue by Segment from 2018 to 2022

Amazon excels at diversifying its revenue streams to increase its profits. Indeed, the
company’s success partly comes from its ability to use its various business divisions to
support and drive growth for other divisions. Far from focusing narrowly and exclusively on
retail e-commerce, Amazon has also established an enviable reputation in such areas as
cloud computing, online advertising, and digital payments.
The tables below shed light on how each division drives Amazon’s business, individually and
collectively. The figures for the current 2022 year are based on the analysts’ estimations from
Insider Intelligence. They foresee that Amazon’s global retail e-commerce sales will
reach $729.76 billion in 2022, constituting an 18.8% increase year-over-year. Their other
prediction is that the US will make up $445.31 billion of that share, accounting for 41.8% of
the total American e-commerce sales.
In the fourth quarter, Amazon’s sales decreased as online store revenue sank 2% to $64.5
billion from $66 billion in Q4 2021. For the full year, the e-commerce titan incurred a net loss
of $2.7 billion. It has been dealing with slowing sales as, worried about climbing gas and food
prices, people began to spend less on discretionary goods. The e-commerce upswing that
started during the pandemic has also dwindled because consumers returned to shopping in
brick-and-mortar stores.
Amazon Retail E-Commerce Sales Worldwide (Billions of US$)

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 Year Revenue Percentage Growth

2018 $292.97 19.0%

2019 $348.63 19.0%

2020 $495.53 42.1%

2021 $614.03 23.9%

2022 -$2.7 -0.3%

Source: Statista
Amazon Web Services Revenue (Billions of US$)

Year Revenue Percentage of Total Revenue

2014 $4.644 5.22%

2015 $7.880 7.36%

2016 $12.219 8.99%

2017 $17.459 9.82%

2018 $25.655 11.02%

2019 $35.026 12.49%

2020 $45.370 11.75%

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 2021 $62.200 13.26%

2022 $80.1 29%

Amazon’s web services are the largest cloud infrastructure in the world. They are offered in
26 regions globally and have more than 200 services, ranging from core computing and
storage to AI tools and low-code or no-code solutions for products and app developers. The
contribution of AWS to the company’s overall revenue has consistently increased. In 2021,
AWS revenue reached $62 billion, representing 13.26% of Amazon’s total revenue.
In the fourth quarter, AWS generated $21.38 billion in sales and fell short of analysts’
expectations of $21.87 billion. This is a 20% increase from a year earlier. Although the cloud-
computing division showed growth, it demonstrated the slowest growth rate since Amazon
started to report its figures separately from other segments. The company expects the
growth of AWS to slow further in the coming year.
For the fiscal year 2022, AWS revenue soared 29% year-over-year to $80.1 billion. Still, these
figures are lower than the 37% growth seen in 2021. AWS’s operating income was $5.2 billion
in the fourth quarter of 2022, dropping from $5.3 billion in the fourth quarter of 2021. AWS’s
operating income for the whole of 2022 is estimated at $22.8 billion.
Source: Statista
Advertising Services Revenue from Q3 2020 to Q4 2022 (Billions of US$)

Year Revenue

2020 Q3 $4.98

2020 Q4 $7.35

2021 Q1 $6.38

2021 Q2 $7.45

2021 Q3 $7.61

2021 Q4 $9.72

2022 Q1 $7.88

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 2022 Q2 $8.76

2022 Q3 $5.40

2022 Q4 $11.56

As the growing revenues generated by Amazon’s advertising services clearly show, Amazon
might catch up with, and even outperform, Google and Facebook which are presently leading
in the digital advertisement space. Indeed, at the end of the first quarter of 2022, Amazon’s
advertising revenue jumped 25% to $7.8 billion. Google’s advertisement revenue
advanced 22.5% at the end of March 2022, while Facebook celebrated an increase of
only 5% over the first quarter of 2021. These numbers suggest that Amazon has a strong
long-term potential and is becoming the force to be reckoned with in the digital ad wars.
Advertising revenue in the fourth quarter of 2022 reached $11.56 billion, exceeding analysts’
forecast of $11.38 billion. As its advertising revenue climbed 19% from a year earlier, Amazon
again left behind online ad companies Google, Facebook, and Snap. The company thus
retains its leading place in digital advertising because it gives sellers more means to pay to
promote their goods across the company’s website, apps, and other media channels.
Amazon Prime Services Revenue (Billions of US$)

Year Revenue

2014 $2.76

2015 $4.47

2016 $6.39

2017 $9.72

2018 $14.17

2019 $19.21

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 2020 $25.21

Although the revenue generated by Amazon Prime services is inseparable from Amazon’s
overall revenue, the company provides the net sales numbers related to it, including digital
videos, audiobooks, digital music, e-books, and other subscriptions, save AWS.
Sources: Statista
Amazon Prime Subscribers
Amazon Prime was launched in 2005 as an Amazon membership service offering free two-
day shipping. Although people were reluctant to pay the Prime membership during the first
years, they have increasingly been warming up to the service since 2011. In the first quarter
of 2018, there were 100 million Prime members worldwide. In 2022, Amazon announced
that it had 157.4 million members across 22 countries.
Amazon Prime User Growth in the US
Amazon Prime Services are popular in the United States. The US accounts for 74% of all
Amazon Prime subscriptions. Analysts at eMarketer expect the number of Amazon Prime
subscribers in America to reach 157.4 million this year and jump to 168.3 million by 2025.
The table below reflects the increase in Amazon Prime subscribers since 2013:

Year Number of Prime Subscribers

2013 25 million

2014 40 million

2015 54 million

2016 65 million

2017 99.7 million

2018 112.1 million

2019 124 million

2020 142.5 million

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 2021 151.9 million

2022 157.4 million

Source: Statista

Amazon Prime Day Sales

Amazon launched the Prime Day Sales event in 2015. It is a deal event conducted once a year
and available solely to Amazon Prime members. In 2021, sales on Amazon during Prime Day
amounted to $11.19 billion, which constituted a 7.7% jump from $10.39 billion a year
earlier.
According to the company, Amazon’s Prime Day in 2022 was the biggest Prime Day event.
Prime members worldwide purchased more than 100,000 items per minute and ended the
event with 300 million items heading to their home addresses. Amazon said that people
saved over $1.7 billion and brought the company $11.9 billion in sales. Most items were
bought in the following three departments: Household Essentials (29%), Health & Beauty
(28%), and Consumer Electronics (27%). The table below shows how steadily people’s
shopping appetite has been whetted over the years since the inception of the event:

Year Gross Sales During Prime Day

2015 $0.9 billion

2016 $1.52 billion

2017 $2.41 billion

2018 $4.19 billion

2019 $7.16 billion

2020 $10.39 billion

2021 $11.19 billion

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 2022 $11.9 billion

Sources: Forbes
Wrapping Up
Amazon has become one of the most powerful and respected companies in the world. It has
earned its enviable reputation by uncompromisingly focusing on customers, being willing to
experiment, and learning from its mistakes when failing. Amazon’s logistics and shipping
have reached the speed and professionalism that no other company can match. The
retailer’s venture into advertising has brought success and disputed Google’s predominance
as a digital-ad titan. Amazon’s foray into healthcare is expected to buoy the sector. Its
constant employment of more workers contributes to positive US Non-Farm Payroll results.
By investing in a private spaceflight company, Jeff Bezos has also proved that for him, quite
literally, the sky is the limit.
Seeing Amazon’s triumphant march forward, analysts cannot but agree that the company
will soon dominate the world. Its wealth and the price of its stock are poised to grow. CNN
Business predicts that in 2026, the stock could hit $7,177.35. And as Amazon disrupts and
masters new areas, it will become more and more difficult for other companies to oust it
from its leading position.

59
 CONCLUSION

The study concludes that the survey program procedures on AMAZON. COM is
effective. The study of performance of Amazon highlighted so many factors which
will help to motivate and awareness among the customers.

The survey was conducted among 30 members and collected information through
structured questionnaire. The study helped to findings which were related to
customers, facilities provided by the Anazon company.

The performance of Amazon activities really play a major role in motivating the
customers. It is a major factor that makes a customer feel good with results. Only the
customers are properly motivated they will show good interest then only the
Amazon is going to benefit out it.
Steps should be taken to improve the awareness among the public. The suggestions
of this report may help in this direction.

This survey programs can be sophisticatedly changed to people involvement

because it is the key stone of the Amazon, nuturing the engagement and
empowerment of people.

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BIBLIOGRAPHY

• https://www.amazon.in

•
https://en.m.wikipedia.org

• https://www.makeuseof.com

•
https://www.businessinsider.com

• https://www.enterpreneur.com

• https://www.forbes.com

•
https://www.speak4u.com

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 ANNEXURE

TOPIC: A PROJECT REPORT ON AMAZON

NAME OF THE INSTITUTE: VASUNDARA WOMEN’S DEGREE COLLEGE
ANISH DEGREE COLLEGE

ADDRESS OF THE INSTITUTE: SAKET,

ECIL KAPRA, MEDCHAL DISTRICT
KAPRA MEDCHAL

S.NAME ROLL NO CONTACT EMAIL ID

NO
[email protected]
Akarsh 208122405025 9704190400

[email protected]
Manikanth 208122405011 6281738611

[email protected]
Veekshith 208122405014 7013395007

QUESTIONNAIRE

1.How often do you browse on- line store on your cell phone? ()
A. All most every day
B.A few times
C. Very rarely
D. Not yet

62
2. Which of these online shopping service do you prefer? ()
A. Amazon
B. Flipkart
C. Myntra
D. Meesho

3.Which is most important to you when shopping online? ()

A. Sped
B. Ease of use

C. Reliability
D. Price

4. How satisfied are you with the quality of the product? ()

A. Very satisfied
B. Not satisfied
C. Satisfied
D. Neutral

5.Choose the product that you when shopping online? ()

A. Skin care B. Accessories

C. Cloths
B. Books

6.Which is the biggest challenge that you face with shopping online? ()
A. Slow checkout time

63
B. Lack of quality
C. Lack of choices
D. Delay in delivery

7. How likely are you buy to recommend this site to other online shopping? ()
A. Very likely
B. Somewhat likely
C. Not likely

8. Which payment do you prefer for online shopping? ()

A. Cash payment
B. Online payment
C. Bank transfer

9. How do you rate you prefer for online shopping? ()

A. Very likely
B. Somewhat likely

C. Not likely

10. The price of the product is important when you shopping in online? ()
A. Strongly agrees
B. Strongly disagrees

C. Disagree
D. Neutral

11. Problem faced by you while shopping online? ()

A. Product did not arrive at all

64
B. Product arrived in damage condition
C. Received wrong product
D. Low quality

12. Barriers which keeps you away from online shopping? ()

A. Safety of payment
B. Low trust level of online store
C. High shipping cost
D. Delay in delivery

13. How do you come to know about Amazon? ()

A. TV
B. Internet

C. Print media
D. Words of mouth

14. Which of the following reason for online shopping? A. ()

Convenience B. Wide range available

C. Discount
D. Unavailability of stores nearby
15. Which of the following features do you like in amazon?
A. Discounts
B. Payments
C. Customer service
D. I have never shopped at amazon

16. Can amazon automatically collects details about the model make of your
computer or smart phone? ()

65
A. Yes
B. No
C. Not specified
D. Can’t say

17. Did you find enough range of products? ()

A. Yes
B. No

C. Somewhat

18. Are you satisfied with the quality of the products? ()

A. Yes
B. No

C. Somewhat

19. How safe did you feel while sharing your card details? ()
A. Very unsafe
B. Safe
C. Not safe
D. Neutral

20. Did you receive your product within the expected time? ()
A. Yes
B. No

C. Somewhat

66