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2 minutes read

How Amazon Is Still Making Money Amid COVID-19 Crisis

| Published on April 14, 2020

The majority of the world recognizes Amazon as an e-commerce platform which is true but it is half a story. Amazon has been running Amazon Web Services since 2006, and you might be surprised to know it contributed 63% of Amazon’s operating income in 2019.

So, shutting down e-commerce operations doesn’t make Amazon numb. Its web services are thriving. And according to a report by CNN, Amazon could make an additional $4 billion in 2020 due to the coronavirus pandemic. The report cites an investor note of Bank of America to highlight the figure.

So what is Amazon Web Services?

According to Amazon’s official website, Amazon Web Services (AWS) is the world’s most comprehensive and broadly adopted cloud platform, offering over 175 fully-featured services from data centers globally. Millions of customers—including the fastest-growing startups, largest enterprises, and leading government agencies—are using AWS to lower costs, become more agile, and innovate faster.

Amazon’s Offerings: Zoom, Slack, and Fortnite

If you are working from home or joining online classes, most probably you are aware of the video calling app Zoom. Well, it is a product of Amazon Web Services. Similarly, Slack and Fortnite are some of the notable mentions of Amazon Web Services.

ET reported that Amazon has been making huge investments in hiring people. As per a blog post by Amazon, it had announced to hire 100,000 people in March and spend $350 million to support its employees.

We have already hired over 80,000 people into those roles, and have spent more than $150 million to support our team of associates and partners. We expect to go well beyond our initial $350 million investment in additional pay, and we will do so happily,” the company said.

The company also added, “We know many people have been economically impacted as jobs in areas like hospitality, restaurants, and travel are lost or furloughed as part of this crisis and we welcome anyone out of work to join us at Amazon until things return to normal and their past employer is able to bring them back.”

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