Both together make One of the most important considerations of the AWS business model is to get to maximum utilisation while retaining optimal revenues and profits. Think of razors and blades (the famous razors-and-blades model), inkjet printers and the cartridge or gaming consoles and the actual games.But this is still all very macro level and we would not be satisfied with an insight that If it was about the razor-and-blades model Amazon would price the eReader low just to price the ebooks high. The inaccuracy comes from the fact that it uses all revenues as well as all accounts receivables, etc though not all revenues are generated by inventory sales activities (e.g. Here are some of the examples that I have described in more detail in the above link:More than 50% of items (in terms of units, not revenues) sold through the Amazon pages are from Amazon has increasingly insourced elements of the delivery network and then Amazon offers “free” shipping on millions of eligible items for an annual (or monthly) subscription fee for Amazon Prime.

The low price of the tablet was essential to trigger the virtuous cycle of hardware sales and an increasing amount of apps becoming available (similar to the Kindle).In 2014, Amazon acquired a video streaming platform renamed to Twitch.

If you have not found them anywhere else then it is because this is the result of my own analysis.I hope you have enjoyed this epically long and hopefully as epically informative article as I did!Murat Uenlue, PhD (Engineering), Program Management Professional (PgMP), Project Management Professional (PMP).

And they are essential to more sales. As always, we are going to look behind the scenes to understand their business models, the economics, the strategies and what we can learn from it.Amazon has long surpassed the competition in terms of online sales.

If you have not done this recently, it is worth checking out to get an impression of the amount of choice that Amazon has amassed (or check out below a quick guide around the navigation and browsing options).We all would agree that a large selection is a great customer proposition. Not only can authors now bypass the traditional gatekeepers via self-published eBooks. Amazon Originals are an important way to differentiate their offering and get subscribers.The whole point of exclusive content is to use it to funnel people into an Amazon Prime Video or Amazon Prime subscription:Amazon has also entered the phone and tablet space with varying success.The Fire phone ended unsuccessfully.

We are sharing topical, free and inspiring content:Are the front-end that is connecting to a deeper back-end infrastructureConnect to and are a part of a marketplace, sales/distribution channel that is fully owned by AmazonFeed back valuable customer (usage and other) data to AmazonAmazon keeps investing continuously in these infrastructures and marketplacesEnable powerful direct data network effects and indirect network effects“We’ve reached a tipping point with the new price of Kindle–the growth rate of Kindle device unit sales has tripled since we lowered the price from $259 to $189,” This is very similar to Amazon’s transport and fulfilment infrastructure. In my mind, it’s a crucial element that is not sufficiently coveredData effects deserve a dedicated call out even if they are not yet extremely well understood in their business model economics.

If you check out the previous link to Amazon’s fulfilment innovations you will see that they too have a number of Murat Uenlue, PhD (Engineering), Program Management Professional (PgMP), Project Management Professional (PMP). In the mid-2000s, Amazon turned over its inventory 15-16 times per year. It will display further details as you hover over each department. Microsoft is stated as the only competitor with a comparable comprehensive offering in Prime is Amazon’s master subscription model and has now over 100m subscribers. Amazon’s apps, such as Amazon Appstore, Prime Video, Amazon Music, Audible, and Kindle Store come with their Fire OS.AOSP is more basic and most importantly does not have the Google Play store and with that not way to access the >2m Android apps.

Best way to contact me is This is one of the best guides to platform businesses I’ve ever seen. And we know this is true for our own companies. Amazon fashion brands: Amazon launched seven fashion brands with some observers wondering if Amazon wants to get into the high margin apparel business at large scale Amazon designed: the ever-increasing selection of Amazon designed and deloped products that I will touch on next time, Amazon Kindle, Fire, Alexa, Echo and many more Utilisation is key to achieve profitability and self-funded growth. We don’t know this for sure as Amazon doesn’t reveal its numbers. Wow.