Is Amazon a B2B or B2C Company in 2024? A Detailed Breakdown

ByCharles Scott Last Update on

As Amazon has evolved from an online bookseller to an ecommerce titan with new ventures like cloud computing, there is some healthy debate around whether it now qualifies more as a B2B or B2C company. By looking at Amazon‘s latest sales data and how it reaches customers, we can better understand where it stands today.

Comparing Key Attributes of B2B vs B2C Companies

First, let‘s outline some major differences that distinguish between business-to-business (B2B) and business-to-consumer (B2C) firms:

||B2B Companies|B2C Companies|
|:-|:-|:-|
|Customers| Other businesses | Individual consumers |
|Buyer Journey | Long, complex sales cycles with multiple decision makers | Simpler path to purchase for personal use |
|Product Mix | Specialized offerings catering to business needs | Mass consumer-friendly goods |
|Marketing Channels | Content and events aimed at commercial buyers | Prime-time advertising focused on consumer engagement |

The Case for Classifying Amazon as a B2B Company

Amazon has grown substantially in serving business customers in recent years:

  • Amazon Business – Launched in 2015, this marketplace offers tailored B2B purchasing, bulk discounts and better analytics. Sales were on pace to top $30 billion globally in 2024.
  • AWS – The cloud services leader earned over $62 billion in commercial cloud infrastructure spending in 2022.
  • Enterprise equipment and services – From warehouse robots to supply chain consultations, Amazon sells specialized B2B solutions at scale.

With major initiatives directly targeting business spend, Amazon seems to be embracing a B2B focus – but let‘s look closer at the numbers…

The Case for Amazon as a Primarily B2C Business

Despite tremendous B2B growth, the lion‘s share of Amazon‘s profit still stems from consumer spending:

  • Across Amazon‘s sites globally, over 95% of gross merchandise volume flows directly from individual shoppers. Comparatively, Amazon Business makes up low single-digit percentages.
  • Mainstream delivery/content offerings like Prime membership and customer ratings cater to high-volume consumer purchases rather than specialized business deliverables.

Look at Amazon‘s 2022 sales mix:

||Revenue|% of Total|
|:-|:-|:-|
|Consumer retail ecommerce* | $317 billion | 83% |
|AWS (B2B) | $62 billion | 16%|
|Other B2B | ~$2 billion | 1%|
|Total | $381 billion | 100%** |

*Includes Amazon online stores, 3rd-party marketplace, Prime subscriptions and other B2C channels
**Amazon Business, advertising, enterprise equipment/services

With over 80% of sales flowing directly from consumers, Amazon still lives firmly in the B2C camp by revenue.

My Take: Amazon as a Hybrid B2B/B2C Model

Given the information we just covered, in my opinion it‘s reasonable to categorize modern-day Amazon as neither strictly B2B nor B2C, but rather a hybrid model blending both:

  • The core platform remains a B2C juggernaut, representing the majority of profit
  • Yet B2B emergence is undeniably real, crossing into the tens of billions annually
  • As revenues diversify, Amazon is increasingly both B2B and B2C

Rather than debate which singular categorization dominates today, it‘s likely more useful to recognize Amazon as fluidly evolving to meet the needs of both business and consumer audiences.

The Road Ahead

While still anchored in consumer retail origins, Amazon‘s B2B footprint has grown considerably through recent strategic pivots – and it has room left to run as business niches remain less saturated.

As Amazon continues stretching itself across additional fronts, its identity may shift over time to that of an even more diversified hybrid giant selling virtually any goods or services imaginable. But consumer spending seems certain to remain the bread and butter for years to come.

Charles Scott is a dynamic professional whose academic and career achievements demonstrate a strong commitment to excellence in the retail and consumer service industry. Graduating with an MBA from New York University in 2013, Charles has built a diverse and impressive career portfolio. He has held significant roles as a manager, advisor, and marketer, showcasing his multifaceted skills and deep understanding of the industry.

Beyond his direct professional engagements, Charles has made a notable mark as the head writer and founder of ExpertBeacon.com. This platform stands as a testament to his dedication to consumer empowerment and education. ExpertBeacon.com is a resource designed to assist consumers in addressing their persistent questions about products, services, and companies. Under Charles's leadership, the site provides in-depth, well-researched, and accurate information, all structured in easy-to-follow guides and articles. His work here not only highlights his expertise in the field but also his commitment to providing valuable, actionable information to the public.

Charles's approach is centered on a keen understanding of consumer needs and market dynamics, making him a respected voice in the industry. His contributions through ExpertBeacon.com and his professional roles reflect a blend of strategic thinking, practical knowledge, and a genuine desire to enhance consumer experiences in the retail and consumer service sectors.

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