Nepedia
Back to Discover
Advanced Reader
💻

Amazon (company)

technology Maturity 9-11 war conflict Next article →

This article covers sensitive topics: war_conflict. Parents can manage visibility in Parental Controls.

Amazon.com, Inc. is a massive American multinational technology company.

Amazon 2024
Amazon 2024

It is classified as a "Big Tech" company because of its enormous scale. Amazon operates in several major fields, including e-commerce, cloud computing, and digital streaming. It also works extensively with artificial intelligence and online advertising. Today, it is recognized as the world's largest online shopping retailer and marketplace. The company is a major driver of global commerce and digital infrastructure.

Amazon Marketplaces worldwide
Amazon Marketplaces worldwide

The company functions through several complex technical and logistical mechanisms. Its e-commerce platform allows customers to purchase a vast array of goods. These items range from books and electronics to pharmacy products and car parts. To manage this, Amazon uses a massive fulfillment infrastructure. Through the "Fulfillment by Amazon" program, third-party sellers can use Amazon's warehouses to ship products.

Amazon Logistics, Borgstedt (APC 0067)
Amazon Logistics, Borgstedt (APC 0067)

Another core mechanism is Amazon Web Services, or AWS. AWS provides cloud computing, which means companies rent data storage and computing power from Amazon. This allows businesses to build applications without owning their own physical servers.

AWS - Amazon Web Services Office in Houston, Texas (46600198075)
AWS - Amazon Web Services Office in Houston, Texas (46600198075)

Amazon is organized into many different specialized divisions and subsidiaries. Its retail side includes various product categories and physical stores. For example, the acquisition of Whole Foods Market in 2017 gave it a large presence in physical grocery retail.

Whole Foods Market Cranbrook Village Ann Arbor Michigan
Whole Foods Market Cranbrook Village Ann Arbor Michigan

The company also has a massive digital media arm. This includes Prime Video for streaming, Twitch for live-streaming, and Audible for audiobooks. Amazon also produces its own consumer electronics. Notable examples include Kindle e-readers, Echo smart speakers, and Fire tablets.

Kindle Fire tablet HD 8 Plus - 2
Kindle Fire tablet HD 8 Plus - 2

Other specialized divisions include Zoox for self-driving cars and Kuiper Systems for satellite internet.

The history of Amazon began with a very specific vision. Jeff Bezos founded the company on July 5, 1994. He originally named the business "Cadabra." He moved from New York City to Bellevue, Washington, to start the company. He chose this location to access technical talent from Microsoft and the University of Washington. In November 1994, the name was changed to Amazon. The website officially launched for public sales on July 16, 1995. At that time, it functioned only as an online bookstore sourcing from wholesalers.

Amazon's founding site in Bellevue, Washington - exterior
Amazon's founding site in Bellevue, Washington - exterior

By May 1997, Amazon had gone public on the stock market.

Amazon's growth has been marked by massive numbers and rapid expansion. In 2017, the company paid 13.4 billion dollars to acquire Whole Foods. By 2021, Amazon surpassed Walmart to become the largest retailer outside of China. Its Amazon Prime subscription service has reached 200 million subscribers worldwide. As of 2024, Amazon is the second-largest company in the United States by revenue. It is also the 12th-most visited website globally. As of October 2024, 84% of its website traffic comes from the United States. The company's scale is so large that it is the second-largest private employer in the U.S.

Despite its success, the company faces significant challenges and criticisms. Many people have raised concerns regarding its business practices. These criticisms include poor working conditions and anti-union efforts. There have also been complaints regarding environmental harm and anti-competitive behavior. During the COVID-19 pandemic, workers in several countries protested safety policies in warehouses.

Anti-Amazon sticker
Anti-Amazon sticker

The company has also faced scrutiny over surveillance partnerships and the treatment of small suppliers. More recently, Amazon has undergone large-scale job cuts to reduce costs and adapt to new technologies. In early 2026, the company announced significant layoffs related to the adoption of artificial intelligence.

Amazon's influence connects to many broader global systems. Its investment in AI is part of a massive industry trend. Along with Meta, Alphabet, and Microsoft, Amazon is expected to invest heavily in AI infrastructure. In early 2026, Amazon even entered talks to invest up to $50 billion in OpenAI. The company's data centers also connect to the global energy sector. In March 2026, Amazon signed an energy pledge at the White House. This pledge requires the company to pay for new electricity generation to power its data centers. These developments show how Amazon's growth impacts technology, labor, and even global energy needs.

677 words

Where will your curiosity go next?

Keep exploring at your chosen reading level.

🖼️ Images & Media (14)
File:Amazon 2024.svg
Amazon 2024.svg
File:Amazon's founding site in Bellevue, Washington - exterior.jpg
Amazon's founding site in Bellevue,...
File:Amazon Marketplaces worldwide.svg
Amazon Marketplaces worldwide.svg
File:Amazon Basics USB cable.jpg
Amazon Basics USB cable.jpg
File:Amazon Fresh Shop Sevenoaks (52626225962).jpg
Amazon Fresh Shop Sevenoaks (52626225962).jpg
File:Kindle Fire tablet HD 8 Plus - 2.jpg
Kindle Fire tablet HD 8 Plus - 2.jpg
File:AWS - Amazon Web Services Office in Houston, Texas (46600198075).jpg
AWS - Amazon Web Services Office in...
File:E3 – 2014 (23113432796).jpg
E3 – 2014 (23113432796).jpg
File:Whole Foods Market Cranbrook Village Ann Arbor Michigan.JPG
Whole Foods Market Cranbrook Village Ann...
File:Amazon Logistics, Borgstedt (APC 0067).jpg
Amazon Logistics, Borgstedt (APC 0067).jpg
File:Amazon Prime Delivery Trucks (44155424640).jpg
Amazon Prime Delivery Trucks (44155424640).jpg
File:Jeff Bezos Unveils Blue Origin Lunar Lander (cropped).jpg
Jeff Bezos Unveils Blue Origin Lunar...

+ 2 more

More to explore

🪜 Step back

Simpler topics to build understanding

What is Nepedia?

A free, ad-free encyclopedia for children. Every article is written at five reading levels, so the same page works for a five-year-old and a fifteen-year-old — use the level switcher above to see this one change. No account needed to read.