[criley2]

I just want to point out how ridiculous it is to think that AWS > Selling stuff out of a warehouse in terms of revenue.

Amazon does about $30B a year in selling goods, and about $7B a year in AWS.

AWS does deliver higher profit margins and more operating income than the tiny margins on selling and shipping goods, so perhaps that's what you meant to say.

[romtx]

It's not ridiculous. Amazon retail operates on very thin margins. AWS does +$7B a quarter, $25.7B for 2018.

Sources: https://qz.com/1539546/amazon-web-services-brought-in-more-m... https://www.zdnet.com/article/in-2018-aws-delivered-most-of-...

[criley2]

Did you check your own source?

Because I was using quarterly for both numbers, and their net sales of merchandise was over $200B (global) in 2018, meaning their net sales were almost 10X higher on products than AWS. Since it's a 10:1 margin, I continue to claim that it's ridiculous to think that AWS > selling physical products in terms of revenue.

In terms of income, however, it's not, they make a lot more on services than physical goods (as everyone not named Apple does)

[winningcontinue]

that 30B in sales is revenue and not a profit. You combine all stuff sales they do together in all their warehouses and logistics and they don't combine together enough to beat the money that their AWS brings in. That 30B revenue costs almost 30B in expenses as well. You take out revenue in the form of advertising and it's almost nothing or negative depending on the quarter. As impressive as the revenue is, it's nothing if you can't turn a profit as a business. Anybody can buy something at wholesale, ship it to your door , not make any money on it and then take it back if it the company is unsatisfied.