the 5 crazy figures of the e-commerce and cloud giant

  • $470 billion in revenue

This is Amazon’s astronomical revenue for the whole of 2021. This is a record for the group and represents a 22% increase over a year, a growth worthy of a startup for a company over 20 years old that is already a world leader for many years. Traditionally high retail costs, the global supply crisis and Covid-19 that led to recruitment difficulties and a lot of absenteeism have made profits less impressive: 33 billion dollars (28.8 billion euros) for the full year. But this is still a spectacular increase of 57% in one year.

In other words, Amazon has grown so big that it now takes full advantage of what economists call the “network effect”: the more users it gets — it now has more than 200 million subscribers to its Prime service — the more offerings matter at its market, bring in other new users…

The network effect is all the more powerful because it is very difficult to exit Prime. Customers are captivated by an unbeatable offering of services: unlimited free deliveries, access to the Amazon Prime Video streaming platform, video games, a huge library of digital books, and cloud file hosting, among others. Unsurprisingly, Amazon announced that Prime subscribers in the United States have seen the most use of the service in 2021: they have received more than 6 billion free deliveries.

How Amazon is torpedoing global e-commerce

  • 11,500 products sold per minute

In 2021, Amazon broke all sales records during the pivotal Black Friday/Cyber ​​Monday (late November) period through Christmas. The company thus had the best sales weekend in its history during Black Friday, and the momentum continued through the end of the year celebrations, with a record 11,500 products sold per minute in the United States, united from Black Friday to Christmas. During this time, more than 130,000 third-party sellers in the marketplace have sold over $100,000 worldwide, with the majority of sellers being small and medium-sized businesses.

  • $31 billion in ad revenue

Much criticized for its opacity – Amazon mixes its own ecommerce service with its marketplace in its financial results, throwing the staggering costs of Prime, which is horribly loss-making, and the frenzied profits of its marketplace, its real-milk, Amazon a bot to its critics when it released its results for the fourth quarter of 2021.

For the first time, the company disclosed its sales in advertisements. It is huge: 31 billion dollars (27.08 billion euros) in 2021, an increase of more than 30% in one year. This achievement actually positions Amazon as the world’s number three in the advertising sector, largely behind the champion Google, which generated 209.5 billion euros in revenue in this segment in 2021, or 182.8 billion euros. , and Meta – the parent company of Facebook , Instagram, WhatsApp and Messenger with 115 billion dollars or 100.4 billion euros.

While lagging far behind the two world leaders in the industry, Amazon’s advertising potential is immense. If Google and Meta know what consumers like and search for, Amazon knows what they’re actually buying.

  • 32% global market share in cloud

As in previous years, the cloud has been a huge growth engine for the Seattle-based giant. Amazon Web Services, its cloud subsidiary, alone weighs 32% of the global market share, allowing it to maintain its position as the world’s number one, ahead of Microsoft Azure (21%) and Google Cloud (10%).

In 2021, this segment represented revenues of $62.2 billion (€54.3 billion, +27% year-over-year), for a net profit of $18.5 billion (€16.2 billion). euros, +27% over one year). So the cloud weighs only 13.2% of Amazon’s total revenue, but three quarters (74.5%) of the group’s profit.

If Microsoft experiences stronger growth momentum than Amazon’s in the cloud, the Jeff Bezos-founded company will continue to win major contracts. In the fourth quarter, its remote computing service signed contracts with the Nasdaq in particular, but also with Meta for its Facebook, Instagram and WhatsApp networks and messaging, or even the automaker Stellantis, the Adidas brand, the Goldman Sachs bank or the pharmaceutical giant Pfizer.

  • 1.6 million employees worldwide

In 2021, Amazon also consolidated its position as the world’s second largest employer, with 1.6 million employees, up from 1.3 million at the end of 2020. The only company overtaking Amazon in this area is US Walmart, with 2. 3 million employees by the end of 2021.

The e-commerce giant, which mainly employs material handlers, said starting wages for warehouse and logistics center workers now exceed $18 an hour in the United States. An argument that Andy Jassy, ​​​​the new CEO since Jeff Bezos left in September, will not fail to make union efforts in Staten Island, New York, as well as in Bessemer, Alabama. If successful, it would be the first union in an Amazon warehouse in the United States.