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2015 Retail Executive Summit
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Amazon's Secret Weapon: Cloud Subsidizes Retail

For the first time ever Amazon separated retail revenue from cloud services during a quarterly briefing last week and guess what? Amazon is a lousy retailer. It reported a loss of $57 million on $22.7 billion in revenue. Heavy investment in Amazon Prime and fulfillment costs wiped out the profit (and a little more) from retail sales, according to Amazon execs. Retailers have always suspected this, but now they have the facts. Amazon is subsidizing its retail division from profits made from cloud services.