Today we’re going to explore Amazon’s management team organizational structure. From public financial reports, we know that Amazon, as a public company, has a Board of Directors, an Executive team, and the mysterious S-Team. How do these three entities position themselves, collaborate, and steer the development of a global company with 1.5 million employees and a $2 trillion market value?
Amazon’s Business Units and Functional Departments
Amazon’s main revenue comes from selling various products and services to customers, primarily from online and offline retail businesses and AWS cloud services. Amazon disclosed the following six major product or service revenues on pages 55-56 of its 2023 annual report:
Retail business (1) - We offer products to consumers through online (1.1) and physical (1.2) stores. Revenue is recognized when control of goods transfers to customers, typically occurring when we deliver goods to third-party carriers or directly to customers via Amazon’s own delivery services.
Third-party seller services (2) - We provide sellers with the ability to sell products in our stores and use our services to fulfill orders. In these transactions, we are not the seller of record. Commissions earned from these arrangements and any related fulfillment and shipping fee revenue are recognized when the service is provided, typically when the related product is delivered to a third-party carrier or directly to customers via Amazon’s own delivery services.
Advertising services (3) - We provide advertising services to sellers, vendors, publishers, authors, and others through programs such as sponsored ads, display ads, and video ads. Revenue is recognized when ads are delivered based on the number of clicks or impressions.
Subscription services (4) - Our subscription sales include fees associated with Amazon Prime memberships and access to digital video, audiobooks, digital music, e-books, and other non-AWS subscription service content. Prime membership provides customers with a continually upgrading set of benefits and represents a single stand-ready obligation. Subscription fees are paid in advance of or during the delivery of services. Revenue from such arrangements is recognized over the subscription period.
AWS (5) - Our AWS arrangements include global sales of compute, storage, database, and other services. Revenue is allocated to each service based on its standalone selling price and primarily recognized when customers use these services based on the quantity of services rendered (such as compute or storage capacity delivered on demand). Some services (including compute and database) are also offered for a fixed quantity over a specified term, with revenue recognized proportionally over this term. Sales commissions associated with contracts longer than one year are capitalized and amortized over the contract term.
Other (6) - Other revenue includes sales related to various other products, such as certain licensing and distribution of video content, healthcare services, and transportation services, as well as our co-branded credit card agreements. Revenue is recognized when content is licensed or distributed, and when services are fulfilled.
In addition to business units, there are also functional departments such as CSO, CFO, HR, compliance and legal, etc. Amazon conducts business globally and deeply understands that user preferences vary by region, so these business units are also divided by region. Therefore, Amazon’s organizational structure is layered, with various business units operating relatively independently, divided by function and geographic region. Amazon expects to be as agile and innovative as startups when facing customers, with rapid iteration. Amazon has formed a unique management team structure that is both functional and hierarchical through its Board of Directors, Executive team, and S-Team.
Board of Directors
As of January 24, 2024, Amazon’s Board of Directors includes 12 members. Apart from Jassy and Bezos, all are directors from corporations and academic institutions who represent shareholder interests, oversee company operations, but do not participate in day-to-day operations. They are responsible for major decisions such as appointing and dismissing the CEO. Board members are typically elected and appointed by shareholders.
Executive Team
The Executive team includes roles such as CEO, CFO, etc., who are responsible for the company’s daily operations and management, executing strategies formulated by the Board and S-Team. Executive team membership is fluid, with some executives simultaneously serving as S-Team members or Board members, ensuring that strategic decisions made by the S-Team align with the Board’s overall vision for the company. Amazon’s Executive team has fewer members than the Board, selected based on experience and capability.
S-Team (Senior Leadership Team)
Amazon’s Senior Leadership Team, known as S-Team, is responsible for setting goals and strategies, shaping company culture, and handling crises. S-Team members typically have worked at Amazon for many years and come from core business units such as AWS, global store operations, etc. S-Team members are directly appointed by the CEO.
In November 2024, Amazon’s official website updated the latest 29-member S-Team. The S-Team meets regularly with the CEO to discuss and formulate major company decisions. The S-Team is a management organization unique to Amazon, designed to reduce hierarchical layers and maintain agility and innovation, serving as a supplement and extension beyond the traditional Board and Executive team.
From the image above, we can see that S-Team members primarily come from Worldwide Amazon Stores (formerly the global consumer business) and AWS cloud computing, with 8 and 7 members respectively. Besides these two core businesses, Zoox (autonomous driving) and AGI, which have significant future impact, have also been nominated to the S-Team for the first time. Let’s learn more about these business units and management teams.
Worldwide Amazon Stores CEO - Doug Herrington
Worldwide Amazon Stores, formerly known as the global consumer business, is a core business unit of Amazon responsible for managing and operating Amazon’s global e-commerce platform.