You may have seen “Amazon Services LLC” or “Amazon.com Service LLC” and wondered, “Is Amazon LLC the same as Amazon?” The answer is yes and no. And by that, we mean that Amazon Services LLC is a subsidiary of the parent company Amazon.com, Inc. So they’re related but not exactly the same.
We all know what Amazon.com is it’s a top-choice marketplace for millions. So, what’s the difference between the Amazon.com we know and Amazon LLC? Let’s get into it.
What is Amazon Services LLC?
Amazon is a huge corporation and owns over 100 different subsidiaries, including Amazon Services LLC. While Amazon.com, Inc. is the parent company you’ll see listed on the stock exchange, Amazon.com Service LLC operates as the entity that provides the services from Amazon that we know and love — the Amazon marketplace, Amazon Prime, etc. (more on that in the next section).Amazon.com Services LLC. is just one of the hundreds of subsidiaries owned by the company, but one of a handle of “group companies” from Amazon.com Inc.. According to its website, Amazon.com, Inc. has five group companies as of July 2023:
- Amazon.com, Inc.
- Amazon.com Services LLC
- Amazon Advertising LLC
- Amazon Web Services, Inc., and
- Audible, Inc.
Other subsidiaries include outside companies acquired by the e-commerce giant, such as Goodreads, Twitch and Zappos.
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Why Does Amazon Have Amazon Service LLC?
Many companies set up LLCs because they limit personal liability for business debts and provide better opportunities for raising investment. LLCs also provide a lot of tax advantages as no tax is levied separately on the company.
In short, Amazon.com Inc — the parent company — has theseseveral subsidiaries, which allow them to take advantage of several tax benefits in several states.
This reduces the tax burden and improves service delivery for customers all around the country.
How Amazon LLC Differs From Amazon, Inc.
Amazon Services LLC is a subsidiary of Amazon.com Inc. and functions as a company that helps third-party sellers store and ship products to customers, among other things.
Think of it this way: Amazon.com Services LLC is an employee of Amazon.com, Inc. Amazon.com Services LLC’s job is to:
- Manage the different storefronts on Amazon.com, including Amazon Prime, Amazon Music, Whole Foods Market, Amazon Style, as well as independent Amazon Sellers.
- Handle delivery and logistics of products for sale, taking orders placed on Amazon.com and shipping them to customers efficiently.
- Control the services offered through Amazon’s Web Services (AWS), like compute power, database storage, content delivery, and more.
- Offer cloud-based services including Amazon Fire TV, Kindle, Amazon Echo, Ring cameras, etc..
- Provide entertainment through its multitude of platforms such as Amazon Studios, Amazon Music, Prime Video, and more.
Amazon Services LLC is a legitimate part of the Amazon family, and it is not different from dealing with Amazon itself.
What Do I Need to Know About Amazon LLC As An Amazon Seller?
You need to distinguish between Amazon.com Services LLC, a firm selling on Amazon, and Amazon.com Inc. Amazon LLC operates by selling products via the Amazon platform. When your product is listed as “sold by Amazon LLC”, it is sold by Amazon on behalf of vendors.
So if an entrepreneur buys or manufactures products for sale, they can send them to Amazon, where customers can order them. It is the responsibility of Amazon Services LLC to take the order and ship it to the buyer.
Amazon.com Services LLC was incorporated as a part of Amazon Inc. As noted, an LLC is formed for the benefit of the parent company.
Amazon Services is a part of Amazon, and the distinction is only for business purposes. Amazon LLC should be considered an Amazon company as a shareholder, buyer, or seller.
Amazon.com Services LLC is part of Amazon, it’s just a subsidiary of the massive parent company, Amazon.com Incorporated.
Most companies of this size create subsidiaries to make their finances easy to manage.
Amazon LLC is essentially the part of the company responsible for taking care of Amazon.com customers. It manages the Amazon storefronts, takes orders from Amazon.com and handles the delivery and logistics of getting products to customers across the globe efficiently. It provides entertainment through different Amazon mediums like Amazon Video and Audible. It offers scalable and reliable cloud computing services through AWS.
So although Amazon Services LLC is not the same as Amazon.com, Inc, it is very much part of the Amazon family.