machine learning and artificial intelligence, Internet of Things, and serverless computing.

Financial Statemet Analysis


Q1: What is the business, the products, the customers, what is the recent historic economic performance,

what are the recent strategic decisions taken the company?

the retail sale of consumer products and subscriptions in North America and, Inc. engages in

internationally. The company operates through three segments: North America, International, and Amazon

resale from vendors, as well as Web Services (AWS) segments. It sells merchandise and content purchased for

party sellers through physical stores and retail Websites, such as, -those offered by third,,,,,,,,

p,,, and The company also manufactures and sells,

readers, fire tablets, fire TVs, and echo devices; and provides Kindle -electronic devices, including kindle e

thors and publishers to make their books Direct Publishing, an online service that allows independent au

available in the Kindle Store. In addition, it offers programs that enable sellers to sell their products on its

s, Websites, as well as their own branded Websites; and programs that allow authors, musicians, filmmaker

app developers, and others to publish and sell content. Further, the company provides compute, storage,

database, and other AWS services, as well as fulfillment, publishing, digital content subscriptions, advertising,

t services. Additionally, it offers Amazon Prime, a membership program, branded credit card agreemen-and co

which provides free shipping of various items; access to unlimited streaming of movies and TV episodes; and

ontent creators. The company was other services. It serves consumers, sellers, developers, enterprises, and c

in 1994 and is headquartered in Seattle, current CEO and Chairman Jeffrey P. Bezos founded

grossing online retailers, with $178 billion in net sales and $320 billion -Amazon is among the world’s highest

-estimated GMV in 2017. Online retail sales accounted for 61% of net revenue in 2017, followed by thirdin

-party seller services (18%), Amazon Web Services (10%), Prime membership fees and other subscription

rmats (3%), and advertising/cobranded credit cards (3%). based services (6%), Whole Foods and other retail fo

AWS sales in 2017.-International segments totaled 33% of Amazon’s non

launch, have exceeded 100 million paid Prime members globally. In 2017 Amazon -13 years post – Prime

n items with Prime worldwide, and more new members joined Prime than in any shipped more than five billio

day -both worldwide and in the U.S. Members in the U.S. now receive unlimited free two –previous year

Singapore, the Netherlands, shipping on over 100 million different items. amazon expanded Prime to Mexico,

and Luxembourg, and introduced Business Prime Shipping in the U.S. and Germany. amazon keep making

Day delivery now in more than -Day and Prime Free One-Prime shipping faster as well, with Prime Free Same

Prime Now is available in more than 50 cities worldwide across nine countries. Prime 8,000 cities and towns.

Day 2017 was the biggest global shopping event ever (until surpassed by Cyber Monday), with more new

Prime members joining Prime than any other day in our history .

It’s exciting to see Amazon Web Services, a $20 billion revenue run rate business, accelerate its already –AWS

healthy growth. AWS has also accelerated its pace of innovation – especially in new areas such as machine

learning and artificial intelligence, Internet of Things, and serverless computing. In 2017, AWS announced

more than 1,400 significant services and features, including Amazon SageMaker, which radically changes the

accessibility and ease of use for everyday developers to build sophisticated machine learning models. Tens of

thousands of customers are also using a broad range of AWS machine learning services, with active users

increasing more than 250 percent in the last year, spurred by the broad adoption of Amazon SageMaker .

In 2017, for the first time in history, more than half of the units sold on Amazon worldwide – Marketplace

were from our third-party sellers, including small and medium-sized businesses (SMBs). Over 300,000 U.S.-

based SMBs started selling on Amazon in 2017, and Fulfillment by Amazon shipped billions of items for SMBs

worldwide. Customers ordered more than 40 million items from SMBs worldwide during Prime Day 2017,

growing their sales by more than 60 percent over Prime Day 2016. Amazon Global Selling program (enabling

SMBs to sell products across national borders) grew by over 50% in 2017 and cross-border ecommerce by

SMBs now represents more than 25% of total third-party sales .