As a small business owner and consultant focused on ecommerce and technology, I am constantly impressed and intimidated by Amazon‘s meteoric rise. Amazon revolutionized online shopping and has expanded into cloud computing, voice technology, digital media, shipping logistics and beyond. So how much is this giant worth in 2024?
The Behemoth of Online Retail
Amazon‘s core online retail platform accounts for the lion‘s share of its staggering net worth of $1.179 trillion as of June 2023. To put Amazon‘s valuation into perspective, its current market cap is greater than the entire GDP of Indonesia!
Amazon‘s online store has enabled it to become the definitive global leader in ecommerce sales:
- In 2022 alone, Amazon raked in over $500 billion in global online retail sales.
- Their online sales account for nearly 40% of all U.S. ecommerce – almost 4 times more than Walmart, its closest competitor.
As an entrepreneur trying to compete in the world of online retail, these statistics are daunting. But they also demonstrate the massive opportunity still available as more consumer spending moves toward digital transactions. Amazon has laid the infrastructure that makes launching an online business easier than ever before.
Cloud Computing Juggernaut
As a small tech startup owner in the past, I heavily relied on Amazon Web Services (AWS) to launch cloud-based products without needing to build costly on-premise servers. AWS and cloud computing may seem tangential to Amazon‘s main ecommerce business. However, this segment directly enables Amazon‘s trillion-dollar ascension through:
- Over 60% of Amazon‘s annual operating income, proving cloud, not retail, is driving profits.
- Expected to grow into a trillion-dollar market itself by 2030.
- Enabled startups and apps like Netflix, Uber, and Airbnb to scale.
AWS demonstrates how Amazon pioneered an entirely new technology segment that fundamentally changed how modern tech products are built. Any software entrepreneur today is essentially forced to use AWS or compete.
Is Sky the Limit for Amazon?
Even after conquering online retail, cloud computing, groceries, smart home products, and much more, Amazon still has its sight set on new sectors like digital advertising, healthcare technology, logistics, and emerging technologies.
- Amazon‘s digital advertising business is growing at over 50% annually and is expected to reach $17 billion this year.
- Their $3.9 billion acquisition of OneMedical illustrates a big bet on disrupting healthcare.
- Rumors continue to swirl around Amazon getting into shipping & logistics.
As Amazon has shown time and time again, entering and dominating new categories will provide it with nearly limitless growth runways for the coming decades. My view is that Amazon will continue aggressively expanding into new areas, furthering its status as the most diversified and valuable technology company for years to come.
