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In 1994, a former hedge fund employee started selling books online from a garage. Today, that company influences how the world shops, stores data, watches movies, and even builds artificial intelligence. Today, we will discuss Amazon, its background, business model and its future outlook.
Background of Amazon: From Books to Everything
Amazon was founded in 1994 by Jeff Bezos in Seattle. The original idea was simple: sell books online.
Why books?
Because books were easy to ship, had millions of SKUs (stock keeping units), and were standardized products. This allowed Amazon to build an online catalog much larger than any physical bookstore.

By 1997, Amazon went public. During the dot-com bubble (late 1990s), investors poured money into internet companies. When the bubble burst in 2000, many companies failed. However, Amazon survived.
Why?
Because Bezos focused on long-term scale instead of short-term profit. He reinvested heavily in logistics, warehouses, and technology.
By the mid-2000s, Amazon began expanding into new categories: electronics, clothing, household goods. Then came a major shift—Amazon Marketplace, where third-party sellers could sell products on Amazon’s platform. This was a turning point.
Amazon’s Business Model:
Amazon is not just one business. It is a combination of multiple businesses operating together.
1) E-Commerce:
Amazon sells products in two ways:
i). First-party retail (Amazon buys and resells)
ii). Third-party marketplace (independent sellers use Amazon’s platform)

2) Amazon Web Services(AWS):

Launched in 2006, AWS provides cloud computing services—servers, storage, and databases to businesses. In many recent years, AWS has generated the majority of Amazon’s operating income. AWS has transformed Amazon from a E-commerce company to a cloud infrastructure giant competing with Microsoft Azure and Google Cloud.
3) Advertising Business:
Amazon’s advertising division is often overlooked by beginners.Its advertising revenue has grown into a multi-billion-dollar business, making Amazon one of the largest digital advertising companies globally—after Google and Meta.

4) Amazon Prime:
Amazon Prime offers streaming and other services on a subscription based model. This segment increases the diversity of Amazon significantly.

Competitors of Amazon:
Retail Competitors include Walmart, Shopify, Chinese e-commerce platforms etc.Cloud Competition is more fierce in the form of Microsoft Azure and Google Cloud.Netflix provides the competition in the streaming services.
Future Outlook:
Right now, Amazon is investing heavily in:

AIAutomation systems for its warehousesFaster delivery systems
Final Thoughts:
Future of Amazon looks bright to me because it has all the elements that are needed to thrive in the modern world. It is also thinking progressively and investing in technologies that will dominate the future world.
$AMZN
#amazon