Amazon vs Shopify: Revenue, Profit and Business Model
Amazon reported $716.9B of revenue in FY2025 and $77.7B of net income. Shopify reported $11.6B of revenue in FY2025 and $1.2B of net income.
Latest financial snapshot
Financial summary
Amazon
Amazon's headline revenue understates how concentrated its profit is. FY2025 net sales were $716.9B and operating income was $80.0B, of which AWS supplied $45.6B on $128.7B of sales. The North America segment turned $426.3B of sales into $29.6B of operating income, and International turned $161.9B into $4.8B. Advertising services, which Amazon reports inside the retail segments, grew from $56.2B in FY2024 to $68.6B in FY2025. Operating cash flow was $139.5B, but capital spending on AWS and AI capacity reached $131.8B, leaving free cash flow of $11.2B against $38.2B a year earlier.
Shopify
Shopify's numbers tell a story of pandemic boom, 2022 overreach and a disciplined reset. Revenue jumped 86% in 2020, but a costly push into logistics (including the $2.1 billion Deliverr deal) and a 2022 slowdown led to a $3.46 billion net loss that year. In 2023 Shopify sold its logistics business to Flexport and cut about 20% of staff. Since then revenue has grown 26% (2023), 26% (2024) and 30% (2025) to $11.56 billion, with 2025 free cash flow above $2 billion. GAAP net income swings with the value of equity investments such as Affirm, Global-E and Klaviyo, which is why 2024 net income ($2.02 billion) exceeded 2025 ($1.23 billion).
Revenue and profit by year
Amazon
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $716.9B | $77.7B | 10.8% | +12.4% | Source |
| FY2024 | $638B | $59.2B | 9.3% | +11.0% | Source |
| FY2023 | $574.8B | $30.4B | 5.3% | +11.8% | Source |
| FY2022 | $514B | -$2.7B | -0.5% | +9.4% | Source |
| FY2021 | $469.8B | $33.4B | 7.1% | +21.7% | Source |
| FY2020 | $386.1B | $21.3B | 5.5% | +37.6% | Source |
| FY2019 | $280.5B | $11.6B | 4.1% | +20.5% | Source |
| FY2018 | $232.9B | $10.1B | 4.3% | +30.9% | Source |
| FY2017 | $177.9B | $3B | 1.7% | +30.8% | Source |
| FY2016 | $136B | $2.4B | 1.7% | — | Source |
Shopify
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $11.6B | $1.2B | 10.7% | +30.1% | Source |
| FY2024 | $8.9B | $2B | 22.7% | +25.8% | Source |
| FY2023 | $7.1B | $132M | 1.9% | +26.1% | Source |
| FY2022 | $5.6B | -$3.5B | -61.8% | +21.4% | Source |
| FY2021 | $4.6B | $2.9B | 63.2% | +57.4% | Source |
| FY2020 | $2.9B | $319.5M | 10.9% | +85.6% | Source |
| FY2019 | $1.6B | -$124.8M | -7.9% | +47.0% | Source |
| FY2018 | $1.1B | -$64.6M | -6.0% | +59.4% | Source |
| FY2017 | $673.3M | -$40M | -5.9% | — | Source |
Where the revenue comes from
Amazon
- Online stores37.6%
First-party product and digital media sales recorded gross. $269.3B of FY2025 net sales.
- Third-party seller services24.0%
Referral commissions plus related fulfillment and shipping fees charged to independent sellers. $172.2B of FY2025 net sales.
- AWS18.0%
Cloud compute, storage, database, and AI services sold on consumption pricing. $128.7B of FY2025 net sales and $45.6B of operating income.
- Advertising services9.6%
Sponsored ads, display, and video advertising sold to sellers, vendors, publishers, and authors. $68.6B of FY2025 net sales.
- Subscription services6.9%
Prime membership fees plus digital video, music, audiobook, and e-book subscriptions. $49.6B of FY2025 net sales.
- Physical stores3.1%
Sales where customers select items in a store, mainly Whole Foods Market and Amazon Fresh. $22.6B of FY2025 net sales.
- Other0.8%
Shipping services, healthcare services, certain video licensing, and co-branded credit card agreements. $5.9B of FY2025 net sales.
Shopify
- Subscription Solutions
Recurring software subscriptions, Shopify Plus, POS subscriptions, themes, and apps.
- Merchant Solutions
Payments, transaction services, shipping, capital, and other merchant services.
- Ecosystem
Developer, partner, and app ecosystem that extends merchant capabilities.
Business model and strategy
Amazon
How it makes money
Amazon runs a hybrid model: it buys inventory and sells it directly, and it rents its store, warehouses, and ad inventory to independent sellers. In FY2025 online stores produced $269.3B of net sales, third-party seller services $172.2B, advertising services $68.6B, subscription services $49.6B, physical stores $22.6B, and AWS $128.7B.
Growth strategy
Amazon's growth now comes mostly from the higher-margin layers on top of its infrastructure. Advertising services grew from $56.2B in FY2024 to $68.6B in FY2025 as Amazon added inventory in Prime Video, grocery, and its demand-side platform.
Competitive advantage
Amazon's advantages depend on scale rather than patents. It carried $534.1B of gross property and equipment at the end of FY2025, including $155.1B of land and buildings and $172.5B of servers and networking equipment, which pays for delivery speed and cloud capacity smaller rivals cannot fund.
Shopify
How it makes money
Shopify earns money in two ways. Subscription Solutions (about $2.75 billion in 2025) covers monthly plans from Basic to Shopify Plus, POS Pro, apps and themes. Merchant Solutions (about $8.8 billion in 2025, roughly three-quarters of revenue) is tied to merchant sales: Shopify Payments and Shop Pay processing fees, Shopify Capital, shipping labels, currency conversion, POS hardware and partner revenue shares.
Growth strategy
Shopify is growing beyond small online stores. It is winning enterprise brands on Shopify Plus and Commerce Components, building B2B wholesale (B2B GMV rose 84% in Q4 2025), expanding Shopify POS for physical retail (offline GMV up 29% in Q4 2025) and pushing internationally (international GMV up 50% in Q4 2025).
Competitive advantage
Shopify's edge is the combination of a hosted platform, an integrated checkout (Shop Pay) and a large app and developer ecosystem. Merchants that rely on dozens of integrated apps, Shopify Payments and Shopify POS face real switching costs, while Shop Pay's stored buyer credentials across the network help checkout conversion. Shop Pay GMV grew 62% to about $43 billion in Q4 2025.
Questions about Amazon vs Shopify
Which company has higher revenue — Amazon.com, Inc. or Shopify Inc.?
Amazon.com, Inc. reported $716.9B (FY2025), while Shopify Inc. reported $11.6B (FY2025). By last reported revenue, Amazon.com, Inc. is the larger business, with Shopify Inc. reporting a smaller revenue base.
What is the market cap of Amazon.com, Inc. vs Shopify Inc.?
Amazon.com, Inc.'s market capitalisation stands at $2.69T, while Shopify Inc.'s is $183.0B. Amazon.com, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Shopify Inc..
Which is more financially efficient — Amazon.com, Inc. or Shopify Inc.?
Amazon.com, Inc. generates $455k / employee in revenue per employee, while Shopify Inc. generates $1.52M / employee. Shopify Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Amazon.com, Inc. and Shopify Inc. make money?
Amazon.com, Inc. and Shopify Inc. generate revenue in fundamentally different ways. Amazon.com, Inc.: Amazon runs a hybrid model: it buys inventory and sells it directly, and it rents its store, warehouses, and ad inventory to independent sellers. Shopify Inc.: Shopify earns money in two ways.
Which company is valued higher relative to revenue — Amazon.com, Inc. or Shopify Inc.?
On a price-to-sales (P/S) basis, Amazon.com, Inc. trades at 3.8x P/S and Shopify Inc. at 15.8x P/S. Shopify Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Amazon.com, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Amazon.com, Inc. bigger than Shopify Inc.?
By last reported revenue, Amazon.com, Inc. ($716.9B (FY2025)) is the larger company compared to Shopify Inc. ($11.6B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Amazon vs Shopify overview