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Amazon's Telling 60/40 Split

An intentional reduction in retail share.

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November 6, 2025 11:25am EST

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IN PARTNERSHIP WITH

Welcome. This week: Amazon’s intentional retail decline, its struggle with Perplexity, its rise in Rufus revenue, and more.

IN-DEPTH

Amazon is Now Just 40% Retail

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.

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.

Affiliate marketing is becoming a core growth channel for Amazon sellers.

With the right platform, it’s easier than ever for brands to team up with creators, automate partnerships, and see exactly what’s driving sales.

Levanta’s Top Amazon Affiliate Marketing Platforms in 2026 breaks down the tools powering performance across the industry, including how Levanta helps sellers connect with creators, manage partnerships, and measure results.

See which platforms are leading innovation and what trends are shaping the next wave of affiliate growth.

→ Read the full breakdown.

NEWS

Amazon sues to stop Perplexity from using AI tool to buy stuff

Amazon.com Inc. is suing Perplexity AI Inc. to try and stop the startup from helping users buy items on the world’s largest online marketplace, setting up a showdown that may have implications for the reach of so-called agentic artificial intelligence. Bloomberg >

Shopify says AI traffic up 7x since January, AI-driven orders up 11x

E-commerce software provider Shopify is bullish on AI-powered shopping agents, citing AI as an “incredible tool” to enable more entrepreneurs and calling it the “biggest shift in technology since the internet” during its third-quarter earnings call. Tech Crunch >

Amazon Rufus on track for $10 billion in sales

There’s an interesting snippet in Amazon’s Q3 2025 Earnings Call regarding the future of AI shopping. It’s Amazon Rufus, which is on track to delivery billions of dollars in incremental sales. AI shopping is already a reality and Amazon are excited as hell about it. ChannelX >

ICYMI

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Amazon's Telling 60/40 Split

An intentional reduction in retail share.

IN-DEPTH

Amazon is Now Just 40% Retail

NEWS

ICYMI

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