This Amazon division is now worth $10B
Just three years after its launch, Amazon’s office supplies platform has turned into an 11-figure business, the company said in a blog post Tuesday.
Amazon Business, which sells an array of supplies ranging from pens and pencils to snacks to basic construction tools, generates “more than $10 billion in annualized sale” as of this year, the e-commerce giant said. The platform services 55 of the Fortune 100 companies and “millions” of overall customers across eight countries.
The fledgling segment has grown rapidly since its launch in 2015 and is on pace to reach $25 billion in annual revenue by 2021, according to research firm Robert W. Baird & Co. The platform generated $1 billion in sales in 2016.
Amazon shares rose 2 percent in trading Tuesday and are up more than 60 percent so far this year.
Led by CEO Jeff Bezos, Amazon derives the majority of its revenue from its flagship digital retail platform and Amazon Web Services, its cloud computing segment. The company earned more than $177 billion in revenue last year and is expected to surpass $200 billion in revenue this year.