Amazon’s retail business now accounts for just 40.5% of the company’s total revenue, marking a new milestone in its evolution from an online bookstore to a commerce infrastructure provider.In Q3 2025, the company generated $73 billion from combined online and physical store sales, while its service businesses – third-party seller fees, advertising, subscriptions, AWS, and its ‘others’ category – delivered $107 billion. It’s a trajectory that has been consistent for years, but the milestone is nonetheless significant: 60% and rising of Amazon is now providing services rather than selling products.The shift is evident in how Amazon presents itself. In last week’s Q3 earnings announcement, the company listed 35 quarterly highlights. Only seven focused on retail operations, such as same-day delivery expansion and grocery availability. The remaining 80% emphasized AI infrastructure, AWS growth, advertising partnerships, and supply chain services – a reflection of where Amazon sees its future and where its margins lie.Amazon’s advertising business alone generated $17.7 billion in Q3, representing a 22% year-over-year growth and now accounting for nearly 10% of total revenue. The advertising network now reaches over 300 million people in the U.S. across Prime Video, Twitch, Fire TV, live sports, and third-party websites. Without this high-margin advertising revenue, Amazon’s retail business would be operating at a significant loss, making it essential subsidization for the broader retail operation.The third-party marketplace has been the primary driver of this ongoing transformation, with seller services generating $42.5 billion in Q3 alone. Sellers now account for 62% of units sold on Amazon, and Amazon collects roughly 50% of their revenue through various fees. But the marketplace is just one component of Amazon’s expanding infrastructure play.Amazon’s quietly accelerating B2B offering, Amazon Business, had a $35 billion annual run rate when last reported in 2023, and is now likely over $50 billion, representing a not-insignificant share of total GMV. More notably, the company has developed an end-to-end supply chain solution that extends far beyond Amazon’s own platform. Through Amazon Global Logistics for freight, Amazon Warehousing & Distribution for bulk storage, Fulfillment by Amazon for picking and packing, and the rapidly expanding Multi-Channel Fulfillment service – which grew 70% year-over-year in 2024 shipping orders for platforms like TikTok, Shopify, and SHEIN – Amazon has positioned itself as the infrastructure layer beneath competitors’ growth.Seven years ago, retail represented 60% of Amazon’s business. [Four years ago], it crossed below 50% for the first time. Now at 40%, the trend shows no signs of reversing. Amazon continues to behave like a retailer while building adjacent service businesses that scale faster and deliver better margins. Retail remains essential as the first customer for fulfillment and advertising services, but Amazon’s real business has become selling the infrastructure that powers everyone else’s commerce.