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Amazon Trending Toward $120B Spending On US-Based Supplies And Services This Year

Amazon could spend more than $120 billion on supplies and services from more than 200,000 U.S.-based businesses this year, from electric vehicle manufacturers to cardboard box makers, according to a Thursday (Aug. 12) press release from the eCommerce giant.

That total, which doesn’t include any of the products Amazon buys and sells to customers in its stores, would be 20 percent higher than Amazon’s total spending on supplies and services in 2020.

A recent independent Keystone Economics study cited by Amazon notes that Amazon’s $120 billion outlay will translate into 840,000 American jobs in construction, transportation, manufacturing, hospitality and other industries. Amazon hired more than 400,000 employees in 2020, bringing its total to more than 950,000.

Amazon also supports more than 2 million businesses, content creators, developers and delivery personnel in the U.S. who are using Amazon products and services.

“We rely on strong partnerships with hundreds of thousands of American businesses — from our forklift manufacturer in Kentucky to the construction company in Texas that builds our delivery stations. Today is about renewing our commitment to these businesses and betting big on them,” said Dave Clark, CEO of Worldwide Consumer at Amazon.

Related: Amazon Appstore Drops Its Revenue Cut To 20 Pct For Small Businesses

Amazon announced in June that its Appstore would decrease how much it takes from small businesses from 30 percent to 20 percent, amid increasing complaints about the retail behemoth’s treatment of small and medium-sized businesses (SMBs).

The company will launch the Amazon Appstore Small Business Accelerator Program in the fourth quarter of this year.

Apple and Google are cutting the shares they take to 15 percent next month for companies that make $1 million a year or less. In Google’s case, it applies to the first $1 million a company makes. Amazon’s Appstore Small Business Accelerator Program also only applies to businesses making $1 million a year or less.

Amazon is also introducing AWS credit options that equal around 10 percent of the revenue, meaning developers will keep close to 90 percent of their revenue if they spend on AWS. The credits will expire following one year.

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