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By Bargainplace UK · November 10, 2025 · Curated by George's Blog
Amazon just crossed a telling threshold: 60% services, 40% retail.
In Q3 2025, the company generated $107 billion from services — primarily third-party seller fees, advertising, subscriptions, and AWS — versus $73 billion from product sales. It's the latest milestone in a transformation that's been consistent but accelerating.
The shift shows in how Amazon presents itself. Last week's Q3 earnings listed 35 highlights. Only seven focused on retail operations, such as delivery expansion. The other 80%? AI infrastructure, AWS growth, advertising partnerships, supply chain services.
Amazon's advertising business alone reached $17.7 billion in Q3, representing a 22% year-over-year growth. Combined with an expanding supply chain empire — AGL, AWD, MCF, et al — the company has positioned itself as infrastructure beneath everyone's commerce, not just its own.
Seven years ago, retail was 60% of Amazon. Four years ago, it crossed below 50%. Now at 40%, the trajectory is clear: Amazon behaves like a retailer while building adjacent service businesses that scale faster and deliver better margins.
Read the full analysis: https://lnkd.in/eizd2ejE