Large-scale e-commerce is no longer primarily about retail. It is an advertising business disguised as a retailer.

Advertising has 60% to 70% operating margins. Retail makes just 2% to 5%.

Amazon’s ad business generated ~$47 billion in EBIT in 2025 at a 70% margin. Goldman Sachs expects that to reach $80 billion by 2028.

We still call Amazon and MercadoLibre online retailers. In reality, they are massive advertising platforms.

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