Amazon vs Vercel: Revenue, Profit and Business Model
Amazon reported $716.9B of revenue in FY2025 and $77.7B of net income. Vercel does not publish annual revenue.
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.
Vercel
As a private company, Vercel does not file public financial statements, so all revenue figures are press estimates or numbers shared by the company. TechCrunch, citing Forbes, reported in April 2026 that annual recurring revenue rose from about $100 million at the start of 2024 to a run rate of about $340 million by the end of February 2026. A September 2026 report said annualized revenue had reached about $600 million, up 148% year on year and up from $500 million in July. On funding, Vercel raised $102 million in a Series C in June 2021 and $250 million at a $3.25 billion valuation in May 2024. In September 2025 it raised a $300 million Series F at a $9.3 billion post-money valuation, co-led by Accel and GIC, together with a secondary tender offer for existing shareholders.
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 |
Vercel
Vercel does not publish annual revenue. What is known about its finances is in the summary above.
Full Vercel financialsWhere 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.
Vercel
- Usage-based platform fees
Majority (not disclosed)
Metered charges for compute, data transfer, requests and AI model usage. Reported in 2026 to be most of revenue.
- Pro and Enterprise plans
Not disclosed
Per-member Pro plans and negotiated Enterprise contracts with added security and support terms.
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.
Vercel
How it makes money
Vercel sells a hosted platform for deploying web applications. A free Hobby tier covers personal, non-commercial projects. The Pro plan charges per team member and includes a monthly usage allowance, and Enterprise contracts are negotiated individually and add security, compliance and support terms.
Growth strategy
Vercel's strategy is to become the default place where AI-built applications run. It markets itself as an "AI Cloud", combining hosting, Fluid compute (introduced in 2025), the AI SDK, an AI Gateway for calling third-party models, and v0 for building apps from prompts.
Competitive advantage
Vercel's edge comes from being the steward of Next.js, a widely used React framework, which lets it support new framework features on its own platform first. Git-based deployments with a preview link for every pull request make the product part of daily team review. Its AI products, v0 and the AI SDK, bring in developers and coding agents that build new apps and deploy them to Vercel by default.
Questions about Amazon vs Vercel
Which company has higher revenue — Amazon.com, Inc. or Vercel Inc.?
Amazon.com, Inc. reported $716.9B (FY2025). A verified revenue figure for Vercel Inc. was not available at the time of this comparison.
What is the market cap of Amazon.com, Inc. vs Vercel Inc.?
Amazon.com, Inc. has a market capitalisation of $2.69T. A public market cap figure for Vercel Inc. was not available (it may be privately held).
Which is more financially efficient — Amazon.com, Inc. or Vercel Inc.?
Amazon.com, Inc. generates $455k / employee in revenue per employee. A comparable figure for Vercel Inc. requires matching employee and revenue data from the same reporting period.
How do Amazon.com, Inc. and Vercel Inc. make money?
Amazon.com, Inc. and Vercel 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. Vercel Inc.: Vercel sells a hosted platform for deploying web applications.
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 Vercel overview