Close Menu
  • For Buyers
    • Retail News
    • Products & Suppliers
    • Ecommerce
    • Marketing & Management
    • Trade Show News
  • For Suppliers
    • Supplier News
    • Marketing & Management
    • Importing
    • Manufacturers
    • Warehousing
    • Finance
    • Show Exhibiting
  • Wholesale 101
  • Trade Show Calendar
  • Wholesale Products
Facebook X (Twitter) Instagram
Saturday, May 31
  • Subscribe
  • Submit Content
  • About Us
    • Contact Us
  • Advertise
    • Display Advertising
    • Email Marketing Campaigns
    • Newsletter Advertising
    • Sponsored Content
    • Lead Generation Services
  • Top Product Sources
Facebook X (Twitter) Instagram
WholesaleCentral.com Blog
  • For Buyers
    • Retail News
    • Products & Suppliers
    • Ecommerce
    • Marketing & Management
    • Trade Show News
  • For Suppliers
    • Supplier News
    • Marketing & Management
    • Importing
    • Manufacturers
    • Warehousing
    • Finance
    • Show Exhibiting
  • Wholesale 101
  • Trade Show Calendar
  • Wholesale Products
WholesaleCentral.com Blog
Home»For Buyers»Ecommerce»We Know Amazon.com – But what is AWS?
Ecommerce

We Know Amazon.com – But what is AWS?

PublisherBy PublisherMarch 28, 2019Updated:January 20, 20234 Mins Read
Facebook Twitter Email
Share
Facebook Twitter Email

AWS logoAmazon monopolizes much of the conversation around retail, between its popular Prime program, advances in shipping logistics, Amazon Go’s payment technology, and most recently the HQ2 contest and the circus than ensued. But, there is one sleeping Amazon giant that arguably has played an even bigger role in startup, ecommerce, and technology innovation: Amazon Web Services.

Amazon Web Services is a subsidiary of Amazon that provides on-demand cloud computing platforms to individuals, companies and governments, on a paid subscription basis. The technology allows subscribers to have at their disposal a virtual cluster of computers, available all the time, through the Internet. Around 2006, Amazon launched a tiny Infrastructure as a Service leg of Amazon.com. At the ten year mark, AWS had reached $10 billion in annual sales, reaching that milestone at a faster pace than Amazon.com.

Today, Amazon is the largest cloud infrastructure company, beating out even traditional tech companies like Google and Microsoft, which are the closest competitors to AWS. So, what exactly does AWS offer businesses? The better question is what doesn’t AWS offer. AWS has servicing for computing, database management, analytics, networking, developer tools, IoT, security, machine learning, augmented reality, virtual reality, customer engagement, and more. These services are designed to help organizations move faster, lower IT costs, and grow by offering these solutions at affordable subscription rates.

Ally or Competitor?

While many IT departments, software companies, and service-oriented businesses were quick to jump in the AWS bandwagon, some retailers are hesitating. Honestly, who can blame them? Most of us remember when Amazon was an unassuming online book store. In the blink of an eye, Amazon completely upended the publishing world and effectively shuttered many traditional bookstores.

Then, Amazon was a benign marketplace that hosted third party sellers and helped many individuals build up successful ecommerce businesses. That is, until 2009 when Amazon started selling their own private label brands, which quickly scaled and cannibalized many Marketplace sales.

Microsoft is not subtle about capitalizing on retailer’s fears of Amazon when marketing their cloud computing products. Shelley Bransten, corporate VP of Global Retail and Consumer Goods at Microsoft, said in an emailed statement to CIO Dive. “Who wants to subsidize their competition? Retailers need a technology partner that’s not selling to them on one side of their business and then competing with them on the other.”

Walmart, for one, has been very outspoken about not using AWS. In 2017, WalMart told CNBC that “Our vendors have the choice of using any cloud provider that meets their needs and their customers’ needs. It shouldn’t be a big surprise that there are cases in which we’d prefer our most sensitive data isn’t sitting on a competitor’s platform.” Instead, WalMart and Jet.com opt for Microsoft’s cloud computing solution, Azure.

It’s completely understandable to be wary of Amazon’s long term motives in providing cloud computing services. There have been calls for Amazon to split up its retail and cloud computing divisions, to avoid future regulatory pressure and antitrust scrutiny. As Nikki Baird points out in Forbes, Amazon.com and AWS are so deeply intertwined that it’s likely not possible. She argues that retailers are missing the larger picture by bucking AWS. Whether you’re concerned about providing Amazon with your data or don’t want to pay anything towards “the enemy,” the truth is small retailers can probably learn more from Amazon then Amazon will take from you.

While not a retail competitor, Netflix is a direct competitor to Amazon Prime Video streaming services. Yet, Netflix went all-in on using AWS services. Netflix is famous for making personalized video recommendations based on your viewing history. Turns out, it’s actually Amazon’s personalization technology behind Netflix’s movie suggestions.

Two of the newest and buzziest AWS solutions include machine learning features like:

Amazon Forecast

This is a sophisticated inventory management tool used by Amazon.com that allows Amazon Prime and Prime Now to make 2-day and 2-hour deliveries possible by predicting what inventory is needed when and where. AWS now has an API that other retailers can use to implement the same kind of inventory forecasting whether you’re dealing with multiple warehouses or just want to purchase for your storefront with more accuracy.

Amazon Personalize

AWS Personalize is what Netflix uses to recommend movies and shows. Retailers can use this technology to recommend additional items based on a shopper’s browsing and purchase history both while shopping on the website and as part of a retargeting email campaign after they leave. Amazon.com also uses this tech on their own site to provide a personalized shopping experience.

amazon March 2019 Issue small business technology
Share. Facebook Twitter Email
Previous ArticleInternational Gift Exposition in the Smokies Celebrates 20 Years
Next Article Take Control of Your Inventory Management with Handheld Scanners

Related Posts

Online Marketing Calendar for 2025: Don’t Miss These Critical Dates

December 17, 2024

How to Sell Without Inventory: Innovative Approaches to E-Commerce and Retail

October 29, 2024

Amazon Return Pallets For Sale: How to Profit

March 20, 2024
Sign Up for Buyer Updates
WholesaleCentral.com

Join the Buyer's Network

Get news & updates only for retailers.

how-to
Wholesale 101 for Buyers

Amazon Return Pallets For Sale: How to Profit

11 Mins ReadUpdated:August 9, 2024

A big trend among some online sellers is buying Amazon return pallets and overstock and…

Retail News

5 Essential Tax Season Preparation Tips

10 Mins ReadUpdated:August 8, 2024

Are you ready for tax season? April 18 is approaching quickly, and many day-to-day decisions…

Ecommerce

7 Steps to Create Successful Shipping for Your Business

6 Mins ReadUpdated:August 8, 2024

by Sidney Karanja Today’s business environment is more globalized and complex than ever before. In…

Product News

Overstock Liquidations

6 Mins ReadUpdated:August 9, 2024

Overstock inventory refers to the excess goods or merchandise that a retailer has on hand…

Latest Posts

Crafting a Marketing Strategy for Electronics Retailers

January 21, 2025

Effective Digital Marketing Strategies for Health & Wellness Brands

January 21, 2025

Mastering Beauty Ads: 10 Strategies for Engaging Your Audience | Blog.Wholesalecentrl.com 

January 21, 2025

Jewelry Marketing Strategies: How to Attract Customers and Boost Sales in a Competitive Market

December 31, 2024

How to Open a Gift Shop: A Step-By-Step Guide

December 23, 2024

Online Marketing Calendar for 2025: Don’t Miss These Critical Dates

December 17, 2024
  • About Us
  • Subscribe
  • Contact Us
  • Advertise
  • Find Wholesale Sources
WholesaleCentral.com

Join the Buyer's Network

Get news & updates only for retailers.

Follow Us:

Copyright © 2025. Sumner Communications, Inc..

Type above and press Enter to search. Press Esc to cancel.