'Create Value for Everyone,' Says Bezos in Final Amazon Shareholder Letter
Staggering numbers stood out in Amazon founder Jeff Bezos’ final shareholder letter as CEO, in Thursday's posting, citing the e-commerce pioneer’s revenue growth, employee expansion and towering stock price rise from its opening $18 per share valuation when it went…
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public almost 12 years ago. Bezos will soon transition to executive chairman, relinquishing the CEO post to Amazon Web Services CEO Andy Jassy. Of the company’s $386 billion revenue in 2020, $301 billion was value created, for consumer and AWS customers ($164 billion), employees ($91 billion), third-party sellers ($25 billion) and shareholders ($21 billion), said Bezos. The goal of a business “should be to create value for everyone you interact with,” said the outgoing CEO, who will hand over the reins to Jassy in Q3. Bezos calculated value to customers in terms of time savings. Customers complete 28% of purchases on Amazon in three minutes or less, and half of all purchases are finished in less than 15 minutes, said Bezos. He compared that time with “about an hour” shoppers spend in the physical store experience. He estimated a "conservative" $10 per hour in time savings. Bezos estimated the company’s value creation for customers using the AWS cloud computing platform last year at $38 billion, based on the assumption that operating in the cloud delivers a 30% improvement in costs, along with the increased speed AWS provides in software development. AWS revenue was $45 billion. Third-party seller profits from selling on Amazon were estimated at $25 billion-$39 billion, he said. Seven-eighths of the $1.6 trillion of wealth Amazon has created for shareholders since the stock began trading benefits pension funds, universities, 401(k) plans and individuals, he said. The stock closed marginally higher Thursday at $3,379.09.