Amazon was founded in 1994 as an online bookstore before expanding into a global marketplace. Jeff Bezos established the company as Cadabra, Inc., and it began operating online as Amazon in 1995.
Books were a practical starting category because an online seller could offer a much larger selection than a typical physical shop. Amazon later added electronics, clothing, household goods, groceries, digital media, subscriptions, and third-party marketplace services. Amazon Web Services became another major business, providing cloud-computing infrastructure to organizations worldwide.
That expansion helped Amazon become one of the world’s most valuable companies by market capitalization. Its valuation reflects expectations for several businesses rather than only retail sales. Investors commonly distinguish Amazon’s retail operation from AWS, advertising, logistics, and subscription products, each of which contributes differently to revenue, costs, and profit.