For those of you who have attended my workshops, you know one of my favorite group exercises is the “What is the lifetime value (LTV) of an Amazon customer?”
To calculate the LTV correctly, you’ll have to understand Amazon’s lines of business. Amazon has six lines of business:
- Online Store (1st Party)
- Third Party (3P + FBA)
- AWS Revenue
- Subscription (Prime etc.)
- Physical Store (Whole Foods)
- Other (Advertising)
For more details on each line of business, refer to this section of Amazon’s SEC filings:
H/T Ryan Reeves