...Amazon has a profitable cloud-computing business that can help shelter it from trouble in its retail divisions, but that’s only half the story. The company’s growing emphasis on third-party selling, a very different business model than the big-box stores’, has helped lift the tech giant while competitors are forced to offer big discounts.
While Amazon does sell some items directly, the company is predominantly an online marketplace like EBay Inc., meaning it collects commissions and fees when shoppers purchase things on the site without having to actually buy that inventory. In the three months ended June 30, 57% of all things sold on Amazon came from independent merchants who bear all the inventory risk—the highest that number has ever been.
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