How much Amazon Worth? Detailed Analysis – It’s going to be a Trillion Dollar Company

How much Amazon worth?

This is the article that shows how much Amazon Worth.

How much amazon worth

1. Introduction to Amazon: How much Amazon worth?

Amazon is the largest online retailing company in the world. It sells almost every single product to its potential customers through online selling.

This company is popular for its cheapest rates of the products. It also ensures its products meet customers’ needs. It has been many years since Amazon is on business.

Amazon also allows its customers to sell their quality products on its website at reasonable prices. Amazon always tries to keep the minimum price for all its products.

Amazon customers display their products and make money while sitting at home.

Amazon has great customer satisfaction. It also has the return policy of its products in case it has defected.

Customers can return the product and it costs them nothing. The product will be replaced with a new product with a warranty card.

According to the reports by the company, its 2019 prime day event was one of the largest shopping events in its history.

The sales of that particular event were 7.16 Billion dollars.

With the success of the company’s stocks, its CEO Jeff Bozos became a multimillionaire.

After Apple and Microsoft, Amazon has the largest stock in terms of market cap. According to the latest report, Amazon’s net worth is about $1000 Billion.

Amazon Market Cap:

Market Capitalization is the most reliable source to gauge any company’s worth. It is also known as the Market cap.

Market cap is the value of the company’s stocks.

It shows the willingness of the investors to pay for a piece of product.

In the last two years, the market cap of Amazon has ranged from $646.5 billion to $1.007 trillion over a 52-week period.
Amazon Net Worth: $160.47 Billion
The market cap shows any company’s market value. It solely depends on market sentiment and opinion of investors.

However, the net worth of any company is based on that company’s assets and revenues. This evaluation measures company’s profits and revenues from the last three years. It also shows the company’s assets and debts.

Hence based on Amazon’s revenues and profits, Amazon is worth 160.47 billion dollars.

Why this number is much lower than the market cap?

It is a big question.

The answer is on an investor’s hard decision that he/she makes before purchasing any stock from a company like Amazon.

Amazon Company is growing faster.

Its large market cap shows that investors are more interested to invest more in the company’s future.

2. Annual net sales of Amazon 2004-2019: How much Amazon worth?

Let’s understand how much Amazon worth by knowing the annual net sales of Amazon from 2004-2019

How much amazon worth
The time series shows the annual net revenue of Amazon.com.

According to the latest reports, the net worth of this e-commerce company was 280.5 billion US dollars.

However, in 2017, it was 177.86 billion US dollars.

The majority of the company’s net revenue comes from online retail product sales.

There are many third-party retail sales services, retail subscription services.

Retail subscription includes Amazon Prime and AWS.

Amazon also produces the leading e-book reader, the Amazon Kindle.

There are many small and large business companies as well as users. They give you a discounted price of all the products at the Amazon platform.

Both new and old items are available for sale on Amazon. It is because of a great number of products with discounted products, Amazon dominates the retail market.

According to the latest reports, Amazon’s brand worth is almost 315 billion US dollars.

In the field of hardware, Amazon has the most popular e-book reader called Kindle.

Since the last few years, Amazon has also released smartphones, tablets, multimedia sticks. With these devices, Amazon has increased the consumption the digital media in this digital world.

Although Amazon is an online market its services are mostly offered in North Africa than worldwide.

This is why the company earns the majority of its net revenue in the United States of America and Canada as compared to 74.7 billion dollars internationally.

3. Number of Amazon employees 2007-2019

To understand how much Amazon worth, we must know the total number of Amazon workers from 2007-2019.

How much amazon worth

As per the latest reports, in 2019, the total numbers of full-time and part-time employees of this eCommerce company are 798,000. and It is expected to reach 840,000 by the end of 2020. 

It is the leading eCommerce retailer in the United States of America.

Its net revenue in 2019 was 280.5 billion US dollars.

Amazon has a greater number of employees even more than Google and eBay.

Amazon hired 200,000 more employees during the 2019 holiday season to help in stock deliveries.

4. How wealthy is the Amazon CEO?

To know about how much Amazon worth, it is important to know how wealthy is the CEO of Amazon online retail company. 

  • Jeff Bezos, the founder, and CEO of Amazon is one of the richest men in the world.

He is one of the five richest men in the world who have not lost money in 2020.

This man has made over 5 billion dollars in the past few months.

His total net worth has reached 120 billion dollars.

Amazon Company’s CEO is a wealthy person.

He has approximately 36% more wealth than the entire British monarchy. He earns about 2,489 dollars every second.

  •  Jeff Bezos’s annual salary is 81, 8440 dollars. Most of his salary comes from Amazon shares.

According to the research of Business Insider, Jeff Bezos makes at least 8.9 million dollars every year.

After divorcing Mac Kenzie, Jeff Bezos has been ranked as one of the richest persons in the world.

Mac Kenzie is now the fourth richest woman in the world after Julia Flesher Koch, David Koch’s widow.

  • According to the World Bank, the GDP of Morocco is 118 billion dollars.

Jeff Bezos’s worth is 36% more than the Gross Domestic Product of Morocco.

  • The Amazon CEO lost 10 billion dollars in 2019 but still, he is one of the richest men.
  • Bezos is so rich that an average American spending $1 is similar to Bezos spending about $1.3 million.
  • The average spending of American is 1 US Dollars which is similar to Jeff Bezos’s 1.3 million dollars.
  • According to Labor Statistics Data, Amazon CEO makes three times more than what American workers make in the whole year.

5. The use of public cloud platform and infrastructure service in the world 2018-2020

Let’s understand the use of cloud platform and infrastructure service in the world 2018-2020. It will help us to deeply understand how much Amazon worth.

Various public clouds perform and infrastructure services are used by the enterprises to run from 2017 to 2020.

At the beginning of 2020, 76 percent of the respondents used Amazon Web Services to run the applications.

Current statistics data shows the usage of services.

6. When Jeff Bezos founded his company?

All credit of how much Amazon worth goes to Mr. Jeff Bezos who founded this company.

Before founding Amazon, Jeff Bezos worked at a hedge fund.

He left that business when he founded his own company Amazon in 1994.

The first products that he used in his company were books.

However, he expanded Amazon to make it an online retailer with almost any product. This has compelled us to know how much Amazon worth.

7. An analysis of Jeff Bezos to become the world’s first trillionaire by 2026?

Jeff Bezos is the world’s richest person and CEO of the world’s trillion-dollar company.

However, there is an optimistic estimation of Jeff Bezos.

It is estimated that Amazon CEO could be worth 1 trillion dollars in the future. This estimation exposes how much Amazon worth and how much it can be worth in the near future.

This is an analysis of the Comparison platform.

How much Amazon worth is directly related to how rich Jeff Bezos is and the prediction says that Jeff Bezos would be the world’s first trillion in 2026.

The firm predicted by looking at the average annual growth of Jeff Bezos’s net worth in the last five years.

Bloomberg reports that Bezos has a current worth of 143 billion dollars.

They also calculated that Amazon founder’s net worth has increased in the past five years.

They further specified that Jeff Bezos’s net worth has increased by about 34 percent each year in the last five years. Jeff Bezos’s growth has been increasing fastly.

His ex-wife Mac Kenzie got 38 billion dollars of his Amazon stake.

Despite that, Bezos’s net worth has been doubled since 2015. According to Comparison, if that growth continues, Jeff Bezos will become the first trillionaire before 2026.

8. How Much Jeff Bezos Is Worth?

After discussing some points about how much Amazon worth, here is How Much Jeff Bezos Is Worth Now.

How much Amazon Worth

Jeff Bezos’s net worth rises and falls based on his company’s performance.

His net worth has been increasing at an average of about 260 million dollars a day.

According to Forbes, Bezos’s worth was measured at 100 billion dollars at the start of 2018.

Bezos is the number one richest man in the world. Bill Gates’s net worth is around 98 billion dollars.

Jeff Bezos is 70 billion dollars richer than Bill Gates.

9. Worldwide Amazon online retail sales market share 2016-2019

The statistical data above shows the global retail market shares of Amazon from 2016 to 2019.

The online retail project accounts for 13.7 percent of the worldwide eCommerce retail sales.

In the United States, Amazon accounts for more than half of the local eCommerce market.

10. Total global visitor traffic to Amazon.com 2020

  • 10. 1 Online retail in the United States

Online retailing business is growing rapidly in the United States of America.

At the beginning of 2020, eCommerce sales accounted for 11.8 percent of the retail sales in the U.S. During that period, US retail sales amounted to more than 160.33 billion US dollars.

However, some categories perform even better than others.

  • 10. 2 Amazon usage in the United States

How much Amazon worth in the U.S? To understand this, let’s know the Amazon usage in the United States.

Amazon is a popular online shopping platform.

Its influence is beyond its own website.

A February 2019 survey of US Amazon users, 66 percent of the respondents said they started their online product research on Amazon.

Amazon is popular not only for product research but also for making purchases. The users choose Amazon for pricing and low shipping costs.

 

11. Amazon: brand value 2006-2019

The brand value of any company shows its worth. There were smaller changes in the brand value of Amazon from 2006 to 2015.

However, since 2016, its brand value has rapidly increased.

In 2019, the global brand value of Amazon stood at 315.51 billion USD.

How much Amazon worth: The worth amazon in 2019 was almost US$315.51 billion. 

12. Rise of Amazon’s brand value

Amazon is one of the world’s top five companies ranked according to their brand value. This top-ranked company compels everyone to know how much Amazon worth.

It is because of healthy user experience, good customer service, and communication. Amazon leaves behind many other eCommerce retails like Alibaba Group.

A brand’s success is determined by customer satisfaction as well as its monetary value. Amazon’s revenue is the period of its success.

The annual net revenue of this eCommerce company rose to 97 billion dollars in 2016. It then increased to almost 233 billion U.S dollars in 2018. This 233 billion U.S dollar shows how much Amazon worth it.

The 233 billion U.S dollars is still the highest for the company till now. This is why the question often comes to mind how much Amazon worth it.

The company has a variety of products ranging from electronics, food, and beauty to subscription services. This has added to the customer satisfaction.

13. Worldwide Amazon marketing expenditure 2010-2019

In 2019, the marketing expenditure of Amazon was about 18.88 billion U.S dollars. However, in the previous year; it was 13.8 billion U.S dollars

14. Amazon Advertising and marketing expenditure

To understand how much Amazon worth, we must understand its expenses.

Amazon states that its marketing cost includes targeted online advertising, ads on TV, and other related expenses on marketing staff.

Other marketing channels include third party customer referrals, sponsored search, social and online advertising.

In 2019, the annual advertising cost of Amazon was 11 billion U.S dollars. In the same year, the company ranked as a leading advertiser in the United States of America.

Amazon is also the largest TV advertiser in the U.S. This retail company is also a leading brand in the U.S based on a net positive buzz score.

Third-party seller share of Amazon platform 2007-2020

Amazon is not only an online retail company but also a digital marketplace. This digital market place is connected to the main retail shopping experience.

At the beginning of this year, third-party sellers sold 52 percent of paid units.

1P and 3P Amazon sellers

Users have different ways to sell on Amazon.

  • First-party (1P) vendor sales.

In the first party vendor sales, vendors send their inventory to Amazon. The vendors control pricing and include ships from and sold by Amazon.com.

What 1P sales benefit Amazon?

The benefits include wholesale purchases from Amazon.

Benefits also include priority selling and brand trust as a seller.

  • Third-party (3P) sales in the marketplace of Amazon.

Amazon allows both individuals and professional sellers to make sales in the marketplace of Amazon.

To fulfill orders, there are different options that include Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). A survey was conducted on Amazon sales in 2018.

According to that survey, almost 50 percent of all the businesses generated 81 percent to 100 percent of the revenues from Amazon sales. 81 percent to 100 percent of Amazon sales revenues is a great ratio that can make us understand how much Amazon worth it.

15. Amazon seller revenues

To understand how much Amazon worth, let’s analyze its revenue in different segments.

In 2018, Amazon generated 42.75 billion U.S dollars in third-party seller revenues. In the next year, it increased. It reached to 53.76 billion U.S dollars in 2019. In this online retail revenue, the second-largest revenue segment is of seller-service revenue. This is how Amazon worth it.

Amazon third-party seller metrics in the U.S. 2019

Let’s understand how much Amazon worth through its third-party seller metrics in the U.S 2019.

In 2019, Amazon had 1.1 million active sellers only from the U.S. Among those sellers, at least, one-third of them had one sale in the measured period.

Additionally, 100,000 U.S dollars were generated by 168,000 sellers in Amazon marketplaces.

Amazon seller main category on Amazon 2019

To understand how much Amazon worth, let’s know the main categories of Amazon according to the 2019 survey.

According to a survey conducted by Amazon in April 2019, 15 percent of respondents say they sold in the home and kitchen category.

Share of Amazon marketplace active sellers worldwide 2019, by country

Now, let’s have a look at Amazon marketplace sellers worldwide 2019. It will help us to understand how much Amazon worth.
In 2019, according to the latest reports, Amazon.com had 38 percent of active amazon marketplace sellers in the world.

Moreover, it accounted for about 1.1 million active sellers in the United States.Amazon.co.uk was ranking in second place after having 9.6 percent of all the active sellers in the whole world.

16. Number of Amazon Video subscribers in the U.S. 2017-2024

We can also understand how much Amazon worth by knowing the number of video subscribers in the U.S 2017-2024.

The number of Amazon subscribers in the U.S was about 50.23 whereas they were 44.99 million in the previous year.

Furthermore, it is forecasted that up to 2024 Amazon subscribers could reach up to 61 million U.S subscribers
Amazon Web Services.

Amazon.com became an online market in 1995. It was initially a bookstore.

However, it achieved great success in a short time. In 1998, Amazon was expanded by including music and video stores. With passing time, it also included several other products.

It is a leading retail company in the United States of America. How much Amazon worth can clearly be understood as it left behind walmart.com and apple.com and other companies in terms of revenues.

17. Amazon Web Services (AWS):

Amazon Web Services is also an important segment that can show how much Amazon worth.

Amazon Web Services (AWS) was launched in 2006 as a cloud computing platform that provided online services. Amazon Elastic Compute Cloud and Amazon S3 are most popular among web services.

These web services provide large virtual computing capacity.

Furthermore, most of the web services like GovCloud are designed specifically for US customers. This retail company has different locations in different parts of the world.

The countries where this company is located include Ireland, Germany, Singapore, Japan, China, Australia, and Brazil.

According to estimation, Amazon web services operate 1.4 million servers in the whole world.

The largest client of Amazon Web Services is Netflix (the streaming video service). Netflix stores its content on servers throughout the world by using Amazon web services.

AWS is the most popular public cloud platform and infrastructure service in the world. Apart from this, various other cloud services providers include Microsoft with Azure, Google, Oracle and IBM.

 

Conclusion:

I hope you have understood how much Amazon worth. If you have any questions regarding the article, feel free to ask in the comments section.

In short, through business planning, Amazon is expected to be the trillion-dollar company in the next few years. 

 

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