Amazon.com, Inc., commonly known as Amazon, is an American multinational company active in e-commerce, cloud computing, digital advertising, consumer electronics, subscription services, and entertainment. It is headquartered in Seattle, Washington, and its common stock trades on the Nasdaq under the symbol AMZN. Amazon reports its operations through three business segments: North America, International, and Amazon Web Services (AWS).[1]
The company was founded by Jeff Bezos in 1994. Amazon.com opened to customers in July 1995 as an online bookseller operating from Bezos's home in Bellevue, Washington.[2] It subsequently expanded into a broad online marketplace, physical retail, logistics, digital media, devices, advertising, and technology services. Among its major businesses and brands are AWS, Amazon Prime, Prime Video, Whole Foods Market, Twitch, Audible, and Ring.
For the year ended 31 December 2025, Amazon reported net sales of US$716.924 billion, operating income of US$79.975 billion, and net income of US$77.670 billion. It employed approximately 1.576 million full-time and part-time workers at the end of that year, excluding independent contractors and temporary personnel.[1] Andy Jassy has served as president and chief executive officer since July 2021, while Bezos has served as executive chair since that time.[1]
History
Founding and early development
Jeff Bezos started Amazon in 1994. In July 1995, the Amazon.com website began operating as an online bookseller from his home in Bellevue, Washington.[2] The company's early business model used the growing reach of the World Wide Web to offer a much larger book catalog than could normally be stocked in a physical bookstore.
Amazon became a publicly traded company in May 1997. Its initial public offering consisted of three million shares of common stock priced at US$18 per share, and the shares were listed on Nasdaq under the AMZN ticker.[3] During the following years, Amazon moved beyond books into other categories and expanded its international operations.
Prime, cloud computing and devices
Amazon introduced Amazon Prime in February 2005. The original program cost US$79 per year and provided unlimited two-day shipping on eligible purchases without a minimum order requirement.[4] Prime later developed into a broader subscription service incorporating delivery benefits and digital services, including video and other media offerings.[1]
Amazon also developed a technology-services business that became Amazon Web Services. In March 2006, AWS launched Amazon Simple Storage Service, commonly known as Amazon S3, offering internet-based data storage through a web-services interface.[5] AWS later expanded into computing, databases, analytics, artificial intelligence, machine learning, and other on-demand technology services.[1]
Amazon introduced the Kindle electronic reader on 19 November 2007. The first version was priced at US$399 and provided wireless access to digital books, newspapers, magazines, and blogs.[6] The company's hardware operations subsequently expanded to Fire tablets, Fire TV products, Echo smart speakers, Ring devices, Blink cameras, and eero networking equipment.[1]
Amazon introduced the Amazon Echo smart speaker on an invitation basis in late 2014. The device used the Alexa voice service. Amazon opened sales of Echo to all customers in 2015 after the invitation period.[7]
Acquisitions and expansion
Amazon has used acquisitions to expand into digital media, physical retail, consumer devices, healthcare, and entertainment. In August 2014, it agreed to acquire the live-streaming platform Twitch for approximately US$970 million in cash.[8]
In June 2017, Amazon agreed to acquire the grocery retailer Whole Foods Market in an all-cash transaction valued at approximately US$13.7 billion including Whole Foods Market's net debt.[9] The acquisition closed on 28 August 2017, adding a substantial network of physical grocery stores to Amazon's retail operations.[10]
Amazon announced an agreement in May 2021 to acquire the film and television company Metro-Goldwyn-Mayer (MGM) for US$8.45 billion.[11] MGM joined Amazon's Prime Video and Amazon Studios operations in March 2022 following completion of the transaction.[12]
Amazon has also expanded its corporate presence beyond Seattle. In 2023, it officially opened Metropolitan Park, the first phase of its second headquarters, known as HQ2, in Arlington County, Virginia. The development opened with two 22-story office towers.[13]
Leadership transition
Bezos served as Amazon's chief executive for most of the company's development from an online bookseller into a diversified technology and retail business. In July 2021, he became executive chair and Andy Jassy, who had previously led AWS, became president and chief executive officer.[1] Jassy had headed AWS as chief executive from April 2016 until assuming Amazon's top executive position.[1]
Business operations
Amazon reports three operating segments: North America, International, and AWS. North America primarily includes retail sales, third-party seller activity, advertising, and subscription services through North America-focused online and physical stores. International covers similar activities through internationally focused stores. AWS consists of global sales of computing, storage, database, and other technology services to customers including businesses, startups, governments, and academic institutions.[1]
Retail and marketplace
Amazon sells products directly through online and physical stores and also operates marketplaces through which independent sellers offer products. Customers access Amazon through websites, mobile applications, physical stores, Alexa-enabled devices, streaming services, and other company platforms.[1]
Third-party sellers can use Amazon's marketplace and fulfillment infrastructure. Amazon earns commissions and, where applicable, fulfillment and shipping fees from these transactions rather than recording itself as the seller of record for those sales.[1]
In 2025, Amazon reported US$269.287 billion in net sales attributed to online stores and US$22.561 billion from physical stores. Third-party seller services generated US$172.162 billion in net sales.[1] The company's physical retail operations include Whole Foods Market and other store formats.
Amazon operates fulfillment, sorting, and delivery infrastructure to support its retail activities. It fulfills customer orders through its own North American and international networks, arrangements with other providers, digital delivery, and physical stores.[1]
Amazon Web Services
Amazon Web Services provides cloud-based technology infrastructure and services. Its offerings include computing capacity, storage, databases, analytics, artificial intelligence and machine-learning tools, and related services.[1]
AWS recorded net sales of US$128.725 billion and operating income of US$45.606 billion in 2025. By comparison, Amazon's North America segment recorded US$426.305 billion in sales and US$29.619 billion in operating income, while the International segment recorded US$161.894 billion in sales and US$4.750 billion in operating income.[1]
During the second quarter of 2026, AWS sales reached US$42.232 billion, compared with US$30.873 billion in the same quarter of 2025. AWS operating income for the quarter was US$16.621 billion.[14]
Subscriptions, media and devices
Amazon Prime combines retail-delivery benefits with digital services. Amazon's financial reporting classifies Prime membership fees together with digital video, audiobook, music, e-book, and other non-AWS subscription services. These subscription services generated US$49.619 billion in net sales in 2025.[1]
The company develops and distributes film, television, and other media content, including through Prime Video. Its entertainment holdings expanded through the acquisition of MGM.[12]
Amazon also designs and sells consumer devices. Its product portfolio includes Kindle e-readers, Fire tablets, Fire TV devices, Echo products, Ring security devices, Blink cameras, and eero networking products.[1]
Advertising
Amazon sells advertising to sellers, vendors, publishers, authors, and other customers. Its advertising formats include sponsored advertisements, display advertising, and video advertising.[1] Advertising services generated US$68.635 billion in net sales during 2025, up from US$56.214 billion in 2024.[1]
Corporate affairs
Headquarters and leadership
Amazon's principal executive offices are at 410 Terry Avenue North in Seattle, Washington.[1] It also describes its Arlington, Virginia, development as its second headquarters.[13]
As of 2026, Jeff Bezos was executive chair and Andy Jassy was president and chief executive officer. Other senior executives identified in the company's 2025 annual report included Matthew Garman as chief executive of AWS, Douglas Herrington as chief executive of Worldwide Amazon Stores, and Brian Olsavsky as senior vice president and chief financial officer.[1]
Financial performance
Amazon reported consolidated net sales of US$716.924 billion for 2025, compared with US$637.959 billion in 2024 and US$574.785 billion in 2023. Operating income increased from US$68.593 billion in 2024 to US$79.975 billion in 2025, while 2025 net income was US$77.670 billion.[1]
For the second quarter ended 30 June 2026, Amazon reported net sales of US$200.606 billion and operating income of US$27.461 billion, compared with US$167.702 billion and US$19.171 billion respectively in the corresponding quarter of 2025.[14] Net income for the second quarter of 2026 was US$62.647 billion; the company reported that the figure included substantial non-operating income primarily associated with its investments in Anthropic.[14]
Workforce and labor relations
Amazon employed approximately 1,576,000 full-time and part-time workers as of 31 December 2025. The figure did not include independent contractors and temporary personnel used to supplement its workforce.[1]
Amazon's labor practices and unionization efforts have been the subject of workplace organizing and regulatory proceedings. In a 2022 representation election at the JFK8 fulfillment center in Staten Island, New York, 2,654 votes were cast for representation by the Amazon Labor Union and 2,131 against. The National Labor Relations Board case record states that the representative was subsequently certified.[15]
In December 2024, the U.S. Occupational Safety and Health Administration and Amazon entered a corporate-wide settlement resolving multiple ergonomics cases associated with inspections at ten Amazon facilities. The agreement required measures intended to address ergonomic risks across Amazon facilities in the United States.[16]
Environmental commitments
In September 2019, Amazon and Global Optimism announced The Climate Pledge. Amazon committed to a goal of reaching net-zero carbon emissions across its business by 2040. The pledge calls for participating organizations to measure greenhouse-gas emissions, pursue decarbonization measures, and address remaining emissions as part of the net-zero target.[17]
Regulation and legal matters
Competition matters
Amazon's marketplace practices have been examined by competition authorities in multiple jurisdictions. In December 2022, the European Commission made legally binding a set of commitments offered by Amazon following investigations concerning its use of non-public marketplace seller data and rules affecting access to the Buy Box and Prime. The commitments included restrictions on Amazon's use of non-public seller data for its retail operations and provisions intended to provide non-discriminatory access to the Buy Box and Prime.[18]
In September 2023, the U.S. Federal Trade Commission and 17 state attorneys general filed an antitrust lawsuit against Amazon. The plaintiffs alleged that Amazon used anticompetitive and unfair strategies to unlawfully maintain monopoly power in parts of online retail.[19] Amazon disputed the allegations and said the practices challenged by the FTC promoted competition, selection, lower prices, faster delivery, and opportunities for businesses selling through its marketplace.[20] The FTC's case record was later amended to include additional government plaintiffs.[21]
Prime settlement
In September 2025, Amazon reached a US$2.5 billion settlement with the FTC concerning allegations about enrollment in and cancellation of Amazon Prime. The order required a US$1 billion civil penalty and up to US$1.5 billion in consumer refunds, along with changes to Prime enrollment and cancellation practices.[22] Amazon stated in response that it and its executives had followed the law and that the settlement allowed the company to move forward.[23]
By September 2026, the FTC reported that Amazon had issued more than US$845 million in consumer redress under the settlement, and a federal court approved modifications intended to accelerate and broaden further payments.[24]
Sponsored advertising lawsuit
On 31 August 2026, the FTC and 22 U.S. states filed another lawsuit against Amazon concerning the operation of its sponsored-search advertising auctions. The complaint alleged that Amazon used undisclosed mechanisms that increased prices paid by advertising customers.[25] The FTC's case page listed the matter as pending as of that date.[25]
Amazon rejected the allegations. It argued that its auction design emphasized advertising relevance and disputed the FTC's claims that advertisers or consumers had been harmed. The company said it intended to contest the case in court.[26]
See also
References
- ↑ 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 "Amazon.com, Inc. Form 10-K for the fiscal year ended December 31, 2025". U.S. Securities and Exchange Commission. 6 February 2026. Accessed 24 September 2026.
- ↑ 2.0 2.1 "Amazon recreated the garage where Jeff Bezos started the company in 1994. Here's what it looks like". About Amazon. 18 October 2023. Accessed 24 September 2026.
- ↑ "Amazon.com, Inc. Announces Initial Public Offering of 3,000,000 Shares of Common Stock". Amazon Press Center. 13 May 1997. Accessed 24 September 2026.
- ↑ "Amazon.com Announces Record Free Cash Flow Fueled by Lower Prices and Free Shipping; Introduces New Express Shipping Program — Amazon Prime". Amazon Press Center. 2 February 2005. Accessed 24 September 2026.
- ↑ "Amazon Web Services Launches". Amazon Press Center. 14 March 2006. Accessed 24 September 2026.
- ↑ "Introducing Amazon Kindle". Amazon Press Center. 19 November 2007. Accessed 24 September 2026.
- ↑ "Amazon Echo Now Available to All Customers". Amazon Press Center. 23 June 2015. Accessed 24 September 2026.
- ↑ "Amazon.com to Acquire Twitch". Amazon Press Center. 25 August 2014. Accessed 24 September 2026.
- ↑ "Amazon to Acquire Whole Foods Market". Amazon Press Center. 16 June 2017. Accessed 24 September 2026.
- ↑ "Amazon and Whole Foods Market Announce Acquisition to Close This Monday". Amazon Press Center. 24 August 2017. Accessed 24 September 2026.
- ↑ "Amazon and MGM Have Signed an Agreement for Amazon to Acquire MGM". Amazon Press Center. 26 May 2021. Accessed 24 September 2026.
- ↑ 12.0 12.1 "MGM joins Prime Video and Amazon Studios". About Amazon. 17 March 2022. Accessed 24 September 2026.
- ↑ 13.0 13.1 "Amazon's second headquarters comes to life in 21 photos from the official opening". About Amazon. 15 June 2023. Accessed 24 September 2026.
- ↑ 14.0 14.1 14.2 "Amazon.com, Inc. Form 10-Q for the quarterly period ended June 30, 2026". U.S. Securities and Exchange Commission. 30 July 2026. Accessed 24 September 2026.
- ↑ "Amazon.com Services LLC, Case 29-RC-288020". National Labor Relations Board. Accessed 24 September 2026.
- ↑ "US Department of Labor announces settlement with Amazon requiring corporate-wide ergonomic measures at facilities across the country". Occupational Safety and Health Administration, U.S. Department of Labor. 19 December 2024. Accessed 24 September 2026.
- ↑ "Amazon Co-founds The Climate Pledge, Setting Goal to Meet the Paris Agreement 10 Years Early". Amazon Press Center. 19 September 2019. Accessed 24 September 2026.
- ↑ "Commission Staff Working Document accompanying the Report on Competition Policy 2022". European Commission. 4 April 2023. Accessed 24 September 2026.
- ↑ "FTC Sues Amazon for Illegally Maintaining Monopoly Power". Federal Trade Commission. 26 September 2023. Accessed 24 September 2026.
- ↑ "Read Amazon's response to the FTC's antitrust complaint". About Amazon. 26 September 2023. Accessed 24 September 2026.
- ↑ "Amazon.com, Inc. (Amazon eCommerce)". Federal Trade Commission. Last updated 31 October 2024. Accessed 24 September 2026.
- ↑ "FTC Secures Historic $2.5 Billion Settlement Against Amazon". Federal Trade Commission. 25 September 2025. Accessed 24 September 2026.
- ↑ "Statement from Amazon on FTC agreement". About Amazon. 25 September 2025. Accessed 24 September 2026.
- ↑ "FTC Announces Additional Payments to Consumers Stemming from FTC's Amazon Prime Settlement". Federal Trade Commission. 17 September 2026. Accessed 24 September 2026.
- ↑ 25.0 25.1 "Amazon". Federal Trade Commission. 31 August 2026. Accessed 24 September 2026.
- ↑ "Amazon's response to the FTC's lawsuit regarding Sponsored Ads". About Amazon. 31 August 2026. Accessed 24 September 2026.