Amazon (company) facts for kids
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The Doppler building in Seattle,
Amazon's headquarters |
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Trade name
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Amazon |
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Formerly
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Cadabra, Inc. (1994–1995) |
| Public | |
| Traded as | |
| ISIN | ISIN: [https://isin.toolforge.org/?language=en&isin=US0231351067 US0231351067] |
| Industry |
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| Founded | July 5, 1994, in Bellevue, Washington, U.S. |
| Founder | Jeff Bezos |
| Headquarters |
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U.S.
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Area served
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Worldwide |
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Key people
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| Products | |
| Services |
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| Revenue |  US$637.9 billion (2024) |
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Operating income
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US$68.59 billion (2024) |
| US$59.25 billion (2024) |
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| Total assets | US$624.9 billion (2024) |
| Total equity | US$285.9 billion (2024) |
| Owner | Jeff Bezos (8.92%) |
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Number of employees
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1,556,000 (2024) |
| Subsidiaries |
List
A9.com
AbeBooks Alexa Internet Amazon.com Amazon Air Amazon Books Amazon Fresh Amazon Games Amazon Lab126 Amazon Logistics Amazon Pharmacy Amazon Publishing Amazon Robotics Amazon MGM Studios AWS Audible Blink Body Labs Book Depository Brilliance Audio ComiXology Eero LLC Goodreads Graphiq IMDb Kuiper Systems PillPack Ring Souq.com Twitch Interactive Whole Foods Market Woot Zappos Zoox |
Amazon.com, Inc. is a huge technology company. It is often called just Amazon. It started in 1994 and is known for e-commerce (selling things online), cloud computing (storing data and running programs online), online advertising, digital streaming (like movies and music), and artificial intelligence.
Jeff Bezos founded Amazon in Bellevue, Washington. It began as an online bookstore. Over time, it grew to sell almost everything, earning it the nickname "The Everything Store." Today, Amazon is one of the biggest technology companies in the United States. Other big tech companies include Alphabet (Google's parent company), Apple, Meta (Facebook's parent company), and Microsoft.
Amazon owns many other companies. These include Amazon Web Services (for cloud computing), Zoox (which works on self-driving cars), Kuiper Systems (a satellite internet provider), and Amazon Lab126 (which develops computer hardware). Other well-known Amazon companies are Ring (smart home security), Twitch (live video streaming), IMDb (movie database), and Whole Foods Market (grocery stores). Amazon also offers many digital services like Amazon Prime Video for movies, Amazon Music for songs, and Audible for audiobooks. They also make popular devices like Kindle e-readers and Echo smart speakers.
Amazon is known for changing industries with new technology. It is the world's largest online store and marketplace. It also leads in cloud computing through AWS. In 2021, Amazon became the largest retailer outside of China. This was largely thanks to its Amazon Prime membership, which has over 200 million members worldwide. Amazon is one of the largest employers in the United States. It is also one of the biggest companies in the world based on how much money it makes.
Contents
Amazon's Journey: A Brief History
How Amazon Started (1994–2009)
Amazon was founded on July 5, 1994, by Jeff Bezos. He moved from New York City to Bellevue, Washington, to start an online bookstore. Bezos chose the Seattle area because it had many skilled tech workers from Microsoft and the University of Washington.
The company was first called Cadabra. It started in the garage of Bezos's house. In November 1994, it was renamed Amazon. The Amazon website officially opened for sales on July 16, 1995. At first, it sold books directly from other companies.
Amazon became a public company in May 1997. This meant people could buy shares of the company. In 1998, Amazon started selling music and videos. It also began operating in other countries like the United Kingdom and Germany. The next year, it expanded to sell many more products. These included video games, electronics, home goods, and toys.
In 2002, Amazon launched Amazon Web Services (AWS). This service first helped web developers build online applications. Later, in 2006, AWS began offering services like Simple Storage Service (S3). This allowed companies to rent data storage from Amazon. In 2008, they added Elastic Compute Cloud (EC2), letting companies rent computing power. Also in 2006, Amazon started "Fulfillment by Amazon." This program lets small businesses sell products through Amazon's warehouses.
Amazon Today (2010–Present)
In 2017, Amazon bought the Whole Foods Market grocery store chain. This greatly increased its presence in physical stores. Amazon is a top online seller in the United States. It has hundreds of millions of active customer accounts worldwide.
Amazon grew a lot during the COVID-19 pandemic. It hired over 100,000 new staff in the United States and Canada. On February 2, 2021, Jeff Bezos announced he would step down as CEO. He became the executive chairman of Amazon's board. Andy Jassy, who was the CEO of AWS, took over as Amazon's CEO on July 5, 2021.
In January 2023, Amazon reduced its workforce by over 18,000 jobs. This was mainly in its retail and human resources departments, as a way to cut costs. On November 8, 2023, Jeff Bezos planned to sell about 50 million shares of the company. The first sale of 12 million shares was worth about $2 billion.
On February 26, 2024, Amazon joined the Dow Jones Industrial Average. This is a group of 30 large, important companies in the U.S. On December 19, 2024, some Amazon workers went on strike in several U.S. states. This was led by the International Brotherhood of Teamsters labor union.
On April 2, 2025, news outlets reported that Amazon made an offer to buy the social media platform TikTok. This was to prevent TikTok from being banned in the U.S.
What Amazon Offers: Products and Services
Amazon.com: The Online Store
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Logo since November 2024
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Screenshot
Homepage
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Type of site
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E-commerce |
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| Available in |
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| Owner | Amazon |
| Website | (original US site) |
| Commercial | Yes |
| Registration | Optional |
| Launched | 1995 |
| Current status | Active |
| Written in | C++ and Java |
Amazon.com is a huge online store. It sells many different things. You can find books, movies, music, and software. They also sell clothes, baby items, electronics, and beauty products. Other items include groceries, health products, and kitchen tools. You can even buy jewelry, watches, sports gear, and toys.
The number of people visiting amazon.com has grown a lot. In 2008, it had 615 million visitors a year. By 2022, it had over 2 billion visitors each month. It is one of the most visited websites in the world.
In February 2024, Amazon launched its first chatbot, "Rufus," in the U.S. By July, it was available to all U.S. customers. Rufus helps shoppers find products and get advice. It can compare items and answer questions from other customers. Rufus is now available in the U.S., India, and the UK.
Amazon has different websites for different countries. For example, amazon.com is for the U.S., and amazon.co.uk is for the UK. These sites might have different products and prices.
Selling on Amazon: Merchant Partnerships
Amazon has worked with other companies to sell products. In 2000, Toys "R" Us partnered with Amazon. Toys "R" Us was the only seller of toys and baby products on Amazon. Later, Toys "R" Us sued Amazon. They claimed Amazon allowed other sellers to offer items they had exclusive rights to.
In 2013, Amazon partnered with the United States Postal Service. This allowed them to start delivering orders on Sundays. This service began in big cities like Los Angeles and New York.
In 2017, Nike agreed to sell products through Amazon. They hoped this would help stop fake goods from being sold. However, Nike ended this partnership in 2019. Other companies like IKEA and Birkenstock also stopped selling on Amazon. They had similar concerns about business practices and fake products.
In November 2018, Amazon made a deal with Apple Inc.. This allowed Amazon to sell certain Apple products. After January 4, 2019, only Apple-approved sellers could sell Apple products on Amazon.
Amazon's Own Brands
Amazon sells many products under its own brand names. These are called "private-label products." For example, the AmazonBasics brand started in 2009. It now includes hundreds of items. These range from phone chargers and batteries to dog crates. As of 2019, Amazon owned 34 private-label brands. Some other Amazon brands are Presto!, Mama Bear, and Amazon Essentials.
Other Sellers on Amazon
A lot of Amazon's sales come from other businesses. These are called "third-party sellers." They sell their products on Amazon's website. Amazon processes the sales and sometimes stores and ships the products for these sellers. Small businesses can use Amazon Marketplace to sell new and used items.
Amazon's Affiliate Program
Website owners can join Amazon's "affiliate program." They earn money if someone clicks a link on their website to Amazon and then buys something. This is a way for websites to earn a commission. Amazon has over 900,000 members in its affiliate programs worldwide.
Customer Reviews
Amazon lets customers write reviews for products. Users rate products from one to five stars. Amazon used to let people comment on reviews, but they removed this feature in December 2020. Now, you can only say if a review was "helpful" or report if it breaks Amazon's rules.
Amazon is a major source of online customer reviews. Jeff Bezos once said that Amazon publishes negative reviews because they want to show "the good, the bad and the ugly." This helps customers make informed choices.
Amazon Sales Rank
The Amazon sales rank (ASR) shows how popular a product is on Amazon. It updates every hour. It's like a "best sellers list" for millions of products. Products with a high sales rank get more attention on the Amazon website. This can lead to more sales. Amazon does not share the exact details of how it calculates the sales rank.
Amazon's Physical Stores
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In November 2015, Amazon opened its first physical bookstore, Amazon Books, in Seattle. The store's prices matched those on its website. Amazon opened several more bookstores. However, all Amazon Books stores were closed in 2022. Other "Amazon 4-Star" retail stores also closed.
In 2020, Amazon Fresh opened several grocery stores. These are located in the U.S. and the United Kingdom.
Amazon's Devices and Services
Amazon offers many popular devices and services. These include its digital assistant Alexa, Amazon Music for songs, and Prime Video for movies. The Amazon Appstore provides apps for Android devices. The Kindle line offers e-readers for digital books. Fire tablets are color screens for reading and entertainment. Audible sells audiobooks.
In September 2021, Amazon launched Astro. This is its first home robot. Astro uses Alexa technology. You can control it remotely to check on your home, pets, or for security. It sends alerts if it finds something unusual.
In January 2023, Amazon launched RXPass. This is a prescription drug delivery service for U.S. Amazon Prime members. For a monthly fee, members get access to many common medications.
Companies Owned by Amazon
Amazon owns over 100 other companies. Some of the well-known ones include Amazon Web Services, Audible, Goodreads, IMDb, One Medical, Twitch, Zappos, and Zoox.
Jeff Bezos also owns other companies separately. These include The Washington Post newspaper and Blue Origin, a space company.
Amazon Live
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Type of site
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Online video platform |
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| Headquarters | 98109, WA Seattle, Washington, United States
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| Owner | Amazon Inc. |
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| Parent | Amazon Inc. |
| Launched | 2019 |
Amazon Live is a live-streaming service from Amazon. It lets users stream videos to promote products. Many celebrities and online influencers use it. They can add tags to products they are selling or promoting. Other users can watch and chat live.
Amazon launched this service in 2019. It is built into the Amazon website and app. By 2023, about a billion people watched Amazon Live in the United States and India. It is also part of Amazon Freevee and Amazon Prime Video.
Amazon Web Services (AWS)
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Amazon Web Services (AWS) is a part of Amazon. It provides "cloud computing" services. This means it offers online platforms and tools for individuals, companies, and governments. You pay for what you use. These services provide computing power and software tools through AWS's large computer centers. As of late 2021, AWS had a 33% share of the cloud infrastructure market. This makes it the largest cloud provider.
Audible
Audible sells and produces audio entertainment. This includes digital audiobooks, radio shows, and audio versions of magazines. Audible Studios, its production arm, is the world's largest producer of downloadable audiobooks. Amazon bought Audible in March 2008.
Goodreads
Goodreads is a website for book lovers. It started in 2007. Users can search a huge database of books, notes, and reviews. You can create lists of books you own or have read. You can also join groups to discuss books. Amazon bought Goodreads in March 2013.
Ring
Ring is a smart home company. It was founded in 2013. Ring is best known for its Wi-Fi smart doorbells. It also makes other security cameras. Amazon bought Ring for about $1 billion in 2018.
Twitch
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Twitch is a live streaming platform. It is mostly for video gaming content. Amazon bought Twitch in August 2014 for $970 million. Twitch grew quickly because of major esports competitions. Many people call it the "ESPN of esports." As of 2015, Twitch had over 1.5 million streamers and 100 million viewers each month.
Whole Foods Market
Whole Foods Market is a chain of grocery stores in the U.S. It focuses on foods without artificial ingredients. Amazon bought Whole Foods for $13.7 billion in August 2017. Since then, Amazon has opened its own Fresh supermarkets. It is also connecting its online and physical grocery services.
Other Amazon Companies
Amazon owns many other companies. Here are a few:
- A9.com: This company focuses on new technology. Amazon bought it in 2003.
- Amazon Academy: This is an online learning platform in India. It helps engineering students prepare for exams. Amazon India launched it in 2021.
- Amazon Pharmacy: This is an online service for prescription drugs. It started in November 2020. Prime members can get discounts on medications.
- Annapurna Labs: An Israel-based microelectronics company. Amazon Web Services bought it in 2015.
- Brilliance Audio: This company publishes audiobooks. Amazon bought it in 2007.
- ComiXology: A digital comics platform. It has over 200 million comic downloads. Amazon bought it in 2014.
- CreateSpace: This company helps independent creators publish their own books, films, and music. It became part of Amazon in 2009.
- eero: This company makes mesh Wi-Fi systems for smart homes. Amazon bought Eero in 2019.
- Junglee: This was an online shopping service in India. It helped customers find products from many online and offline stores. Amazon bought Junglee in 1998. The website closed in 2017.
- Kuiper Systems: This Amazon company plans to launch over 3,000 satellites. These satellites will provide internet access from space.
- Lab126: This team develops Amazon's electronics, like the Kindle. It became part of Amazon in 2004.
- Shelfari: This was a social website for books. Users could create virtual bookshelves and discuss books. Amazon bought Shelfari in 2008. It later merged with Goodreads in 2016.
- Souq: This was the largest e-commerce platform in the Middle East. Amazon bought Souq.com in 2017. It was then rebranded as Amazon.
How Amazon Works: Operations
Delivering Packages: Logistics
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Amazon uses many ways to deliver packages. Some services are Amazon's own:
- Amazon Air: This is Amazon's cargo airline. It moves large amounts of packages.
- Amazon Flex: This is a smartphone app. It lets individuals deliver packages using their own cars. They are independent contractors.
- Amazon Logistics: Amazon works with small businesses called "Delivery Service Partners." These businesses deliver packages to customers. They use Amazon-branded vans and wear Amazon uniforms.
- Amazon Prime Air: This is an experimental drone delivery service. It delivers packages by drones to Amazon Prime members in certain cities.
Amazon also directly hires people to work in its warehouses and distribution centers. These employees handle sorting, packing, and shipping. Some warehouses use robots built by Amazon Robotics to help with tasks.
In 2020, most Amazon deliveries in the U.S. were handled by Amazon's own services. The rest were delivered by the United States Postal Service and UPS. By April 2021, Amazon had increased its in-house delivery capacity by 50%.
Getting Products Ready: Supply Chain
Amazon started its distribution network in 1997. It had two fulfillment centers in Seattle and New Castle, Delaware. Amazon now has many types of facilities. These include fulfillment centers, sortation centers, and delivery stations. There are many fulfillment centers and sortation centers with over 125,000 employees.
Employees unpack and check new goods. They place goods in storage and record where they are. Then, they pick items for individual orders. Finally, they sort, pack, and ship the orders. Computers help by tracking goods and planning routes for workers. Some warehouses use robots to automate parts of the process.
In 2006, Amazon launched "Fulfillment By Amazon" (FBA). This program helps small sellers. Amazon stores, packs, and ships their products for them.
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Amazon.fr fulfillment center in Lauwin-Planque, France
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Amazon.es fulfillment center in San Fernando de Henares, Spain
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Amazon.co.uk fulfillment center in Glenrothes, Scotland, UK
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Amazon.de fulfillment center in Graben, Germany
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How Amazon is Run: Corporate Affairs
Amazon's Leaders: Board of Directors
As of June 2022, Amazon's board of directors included:
- Jeff Bezos, executive chairman
- Andy Jassy, president and CEO
- Other leaders from various industries and backgrounds.
Who Owns Amazon: Ownership
The largest shareholders of Amazon in early 2024 were:
- Jeff Bezos (9.1%)
- The Vanguard Group (7.5%)
- BlackRock (4.6%)
- Other large investment companies and individuals.
Amazon's Money: Finances
Amazon.com makes most of its money from selling products. It also earns money from companies advertising on its website. As of 2018, Amazon.com was ranked eighth among the largest U.S. companies by total money earned. In 2023, Forbes Global 2000 ranked Amazon 36th among the world's largest public companies.
For the year 2021, Amazon reported earning $33.36 billion. Its total money earned was $469.82 billion. This was a 21.7% increase from the year before. Amazon's value in the stock market went over $1 trillion again in early 2020. This happened after they announced their strong results for late 2019.
Amazon's Way of Working: Corporate Culture
Jeff Bezos was known for his yearly letters to shareholders. These letters gave a look into how Amazon worked. Bezos wanted Amazon to always focus on the customer. He even made senior leaders answer customer support calls for a short time. He also read many emails sent by customers to his public email address.
One famous memo from Bezos told all teams to share their data and functions. This led to services that later became part of AWS.
See also
In Spanish: Amazon para niños
- Amazon Pay
- Amazon Standard Identification Number (ASIN)
- History of Amazon
- List of book distributors
