Amazon – an Internet kingpin. Its market value not only exceeds that of other online retailers, but also exceeds traditional retailers. How did Amazon become so successful and where is all their money coming from?
Rather than staying focussed on only turning a profit, Amazon sought after balance. With any large and growing company, as profits go up so too does operating costs. As of 2016 the operating income of the year totaled only $4.2 billion, just 4% of total sales. By keeping operating costs (relatively) low, Amazon is able to allocate their profits to improving, not just maintaining, all the departments.
Consistently ranked very high in customer service polls, one of Amazon’s top priority is their consumers. Big companies often earn a bad reputation for themselves when it comes to customer service. For Amazon, on the other, it’s quite the opposite. According to two different consumer polls, Amazon was ranked as number one in customer satisfaction for 2017.
Amazon has come a long way to reach its market value of $427 billion and it’s showing no signs of slowing down. Check out this infographic for more on the growth of Amazon, what the future may hold, and how you can get a piece of it.