Turning Costs into Revenue

Operating a business incurs many expenses. But what if there is a way to turn those costs into a revenue. Amazon realized this quite early on. They have successfully turned most of their expense line-items in their income statement of 2005 to revenue generating products and services. Since Amazon were one of the first to explore and grow in the e-commerce space they had a considerable advantage in understanding what were the necessary operational services that were missing. Fulfillment of orders turned into Fulfillment by Amazon. Marketing in a way has become Amazon Prime. Backend servers and infrastructure has become Amazon Web Services. Payment Processing has become Amazon payments. And now they sell these products and services in almost all verticals and geographies. Productizing internal operations and scaling will become more common with enterprise software in the coming years.

Subscribe to Thinkwist

Don’t miss out on the latest issues. Sign up now to get access to the library of members-only issues.