How To Buy Amazon (AMZN) Stock In 2023

Last Updated April 6th 2023

12 Min Read

This guide will provide you with a comprehensive guide on how to buy Amazon stock in 2023. We will provide you with an overview of the Amazon stock buying process and then discuss it in detail. We will, for instance, help you understand what to look for when choosing the best Amazon share broker and the best share trading platform.

But even more importantly, we will tell you everything you need to know about Amazon as a company and its stock price history. We will even help you understand whether Amazon stock is worth buying by discussing the reasons to buy and reasons not to buy Amazon stock.

How To Buy Amazon (AMZN) Stock – Overview

Here is an overview of the Amazon stock buying process. Most online brokerages follow a rather simplified and standard share trading process.

Step 1: Create a share trader account – Start by opening the official website or downloading the mobile app of your preferred brokerage. Choose to open a share trader/investor account and complete the registration process by entering personal details and creating an account password.
Step 2: Verify your identity – All regulated share brokers will require you to verify your identity before you start trading/depositing funds into the investor account. They will ask that you submit a copy of a government-issued identity document such as a passport or driver's license.
Step 3: Deposit funds – Once the account is approved, log in and choose to deposit funds therein. When choosing the best-regulated broker, ensure they support your preferred deposit/withdrawal method.
Step 4: Buy Amazon (AMZN) shares – After the funds reflect in your trader account, open a buy order for Amazon stock.

That’s it! By following these easy steps, you can buy Amazon shares in less than 10 minutes.

Your capital is at risk. Other fees apply.

Below, we will explain this Amazon shares buying process in detail. We will help you make an informed decision on where to buy Amazon shares and tell you how Amazon shares have performed in the past. We will also share factors affecting their price action and provide a beginner's guide on buying shares with one of the most reputable online brokerages.

The Amazon (AMZN) Stock Buying Guide - Reviewed

Step 1: Decide Where To Buy Amazon (AMZN) Stock

The first step to buying Amazon and virtually any other company stock is finding the best online brokerage. And in this section, we will tell you about the two best commission-free and multi-regulated share brokerages.

First, though, we need to discuss some of the factors that you ought to consider when looking for the best share trading platform. Here are five of the most important:

Cost of trading: The cost of trading directly impacts your eventual take-home in profits. Therefore, check all the charges and fees (both trading and non-trading) imposed by a broker and assess the impact they have on your profitability, then go for an affordable brokerage.
Regulation and reputation: Only register a share investor account with a regulated broker. The broker should also be of high repute with regard to reliability, customer service, and efficiency.
Access to tools and education: Your preferred online broker should also grant you access to the widest range of premium trading, analysis, market research, and risk management tools. It should also give you access to a free demo account and comprehensive educational content.
User-friendliness: Your preferred brokerage should also maintain a user-friendly and highly intuitive trading interface. It should be easily navigable and appealing to both beginner and expert investors.
Account minimums: Before registering a share investor account with a broker, check their minimum deposit and trade limits. Confirm whether they support fractional share ownership and trading.

eToro – Best Broker for User Friendliness and Copy Trading

eToro is one of the most popular multi-regulated share brokerages. Here, you get to buy Amazon shares (it even allows fractional trading) or trade AMZN share CFDs. The broker doesn't charge a commission, implying that you will only have to pay a variable and competitive spread when trading shares on this platform.

And to start buying Amazon shares on eToro, you will only need to register a user account and deposit a minimum of $10. The broker supports one of the most diverse ranges of deposit options – including PayPal – and doesn't charge a deposit processing fee. You, however, can only withdraw a minimum of $30 from eToro – which attracts a $5 processing fee. Note also that eToro has only one base currency – the USD – and that non-USD deposits will attract a 2% currency conversion fee.

invest in stocks

The multi-asset trading platform also tops our list of best Amazon share brokers because it operates one of the most intuitive trading interfaces. This is both easily navigable to appeal to beginner traders but also integrates a range of premium tools that make it appealing to expert traders. It even provides users with a demo account that beginners can use to learn the ropes while experts use it to test trading strategies.

But eToro is even more popular because it integrates copy and social trading tools. The social trading platform facilitates seamless interactions between eToro platform users. Experts get to interact, share ideas, and collaborate on such projects as strategy formulation or testing with other experts.

Copy trading, on the other hand, creates a passive income generation stream for eToro platform users. Beginners earn by copying trade settings of highly successful traders, while experts earn a commission from eToro – based on assets under copy.

Your capital is at risk. Other fees apply.

Webull – Best Broker for Fractional Share Ownership

Webull is a popular and highly reputable share trading platform for US stocks. Unlike eToro, which lets you interact with thousands of international stocks, Webull only supports local shares and a small selection of international ADRs. We list it among the best Amazon share brokers because it supports fractional share ownership – allowing you to start buying AMZN shares with as little as $5.

The online share broker is also quite beginner-friendly, as evidenced by its straightforward client onboarding process. This extends to maintaining a navigable and highly intuitive user interface. Additionally, the multi-asset broker doesn't maintain a minimum initial deposit limit. It, however, only supports two deposit methods – ACH checks and bank wire transfers. And while ACH deposits are free, bank deposits attract an $8 dollar fee - with withdrawals attracting a $25 charge.

Like eToro, Webull is a commission-free broker. It, therefore, only charges variable and highly competitive spreads when buying Amazon shares on the platform.

Other factors that make Webull one of the best Amazon share brokers include its integration of highly advanced trading tools into its platform. These include screeners, news and data, economic calendars, charting tools, and risk management tools like negative balance protection. But even more importantly, Webull lets you invest in Amazon stock via tax–advantaged IRA.

Step 2: Research Amazon (AMZN) Stock

The second step to investing in Amazon stock involves gathering as much relevant information as possible about both Amazon's company and its shares. This involves learning the history of the company and how it works – especially its revenue sources.

You also need to learn how Amazon stock has performed in the past. Lastly, you need to learn about all the factors affecting the performance of both the company and its share prices.

Most brokerages, including eToro and Webull, will provide you with detailed briefs about both the Amazon company and the history of its share price.

In this guide, we complement this broker-provided information by telling you everything you need to know about researching buying Amazon shares in 2023.

What is Amazon?

Amazon is a US-based multi-national technology and retail company. It was created in July 1994 as an online marketplace for books by Jeff Bezos. Twenty-eight years later, it has morphed into the largest technology company in the world, specializing in eCommerce (through Amazon), Cloud computing (via Amazon AWS), digital streaming (via Amazon Prime Video), online advertising, and artificial intelligence.

buy Amazon stock

Founded from Jeff Bezos' garage in Bellevue, Washington, Amazon has, over the years, morphed into one of the biggest tech giants in the USA – alongside Meta, Apple, Alphabet, and Microsoft. At the time of writing, Amazon is also the 5th most valuable company in the world, with a market cap of $950 Billion.

Amazon's revenues have been on a steady uptrend over the last few years. In the third quarter of 2022, for instance, Amazon reported revenues of $127 Billion, posting 14.7% year-over-year gains. And for the year ending September, the company posted $502 Billion in annual revenue – posting a 9.55% year-over-year gain.

Note that the eCommerce section accounts for more than half of Amazon's total revenues. And for the year 2022, it is expected to process more than $730 Billion in worldwide sales. This represents a significant gain from the $470 Billion in revenues earned in 2021.

This progressive growth for both its retail and other subsidiaries continues to play a key role in drawing investor attention to the company stock. These are further reinforced by the acquisition of different technology and retail brands by the company, which has helped push up its share price.

Amazon Historical Price Performance

Amazon stock went public in May 1997, with 3 million shares put out for sale during the IPO at $18 each. This helped the company raise $54 Million – giving it a modest market value of $438 Million.

By the end of the first day of listing on NASDAQ, AMZN was selling for $23.50 – having gained 30%. Since then, the tech giant's shares have maintained an overall uptrending price action, appreciating by more than 62% in the last five months – against S&P 500's 50% gain during the same period.

Overall, Amazon has been one of the most lucrative stock investments of the last two decades, seeing that its share value has appreciated by more than 100000%. Much of these have, however, been absorbed by the four-stock splits the company has been engaged in.

The first 2-to-1 split took place in June 1998, followed closely by two successive splits – starting with a 3-to-1 in January and another 2-to-1 in September 1999. Its latest and largest split yet came about two decades after the dot-com bubble – in June 2022 and saw each Amazon stock split into 20. In all, the original Amazon stock has now been split into 240 equal shares.

If you had invested in just one AMZN stock worth $18 during its launch in 1997, you would currently have 240 AMZN shares. And with each currently hovering around $95, the $18 investment would be worth $1,710.

We must also mention that Amazon shares have been added to multiple local and international indexes and funds. It especially carries a lot of weight in the S& 500 and NASDAQ 100 indexes.

Factors Affecting Amazon (AMZN) Share Prices

We have already mentioned that Amazon has been one of the most profitable stocks of the last two decades. We must, however, also observe that AMZN shares are also prone to market volatility.

In the last 12 months, for instance, Amazon's share prices have dipped by more than 45%. Much of this could be attributed to slowed growth for the tech giant and post-covid-19 pandemic supply chain challenges.

Other factors affecting Amazon stock prices that you need to watch out for include the following:

Revenue projections: Since Amazon doesn't pay dividends, most of its revenues are dedicated to expanding the company. Positive revenue projections, therefore, mean more growth which has a positive impact on AMZN shares – and vice versa.
Growth projections: Growth projections for Amazon's eCommerce and technology sectors – both locally and internationally – also play a critical role in influencing AMZN stock price.
Artificial speculation: Investors are always looking at company revenue projections and making bullish or bearish moves in the market based on this. Therefore, conduct your own analysis of the stock and company before jumping on rushing to buy during a bull or bear run.
Macroeconomic factors: In addition to company-related factors affecting AMZN's share price, numerous external factors will also affect Amazon's revenues and stock price. These include rising inflation, rising interest rates, and an ineffective global supply chain.

Your capital is at risk. Other fees apply.

Step 3: Open a Share Investor Account and Buy Amazon (AMZN) Stock

You now know where to buy Amazon shares. You also know how the eCommerce giant's shares have performed in the past and the factors affecting their next price action. It now is time to learn how to buy your first Amazon stock.

For this illustration, we will show you how to buy Amazon shares from eToro – the all-popular online brokerage.

1. Open a stock broker account

On your browser, open the official eToro website or simply download the eToro mobile app. Tap on the "Join Now" icon and complete the registration form that pops up. It will ask for personal details, your income sources, and your trading experience.

open trading account

2. Verify your identity

eToro – like all regulated online trading platforms – is required by law to put its clients through KYC checks. The broker will, therefore, demand that you verify your identity before you can start buying Amazon shares on the platform. Do this by simply submitting a copy of your passport or driver's license.

etoro account verification

3. Deposit funds

eToro will send you an email later informing you that your investment account has been approved. Log in to the account, tap on the "Deposit Funds" icon and from the funding tab that pops up, choose one of the supported payment options and follow the prompts to complete the cash deposit – at least $10.

fund account

4. Buy Amazon stock

Once the funds reflect in your trading account, hit the "Discover" tab and choose to buy stocks. Find Amazon from the list of supported shares, hit the "BUY" option and customize the purchase on the "Trading Tab" that pops up. Decide the number of AMZN shares you wish to buy or the amount of cash you wish to spend on the trade – then hit the "Open Trade" button to execute the buy order.

buy amazon stock

Your capital is at risk. Other fees apply.

Amazon (AMZN) Stock Strengths And Weaknesses

This far, we have talked about where to buy Amazon shares, factors that you need to watch out for when buying Amazon stock, and even given you a beginner's guide on how to buy your first Amazon stock.

But are Amazon shares really worth buying in 2023? We explore this and help you arrive at a decision of whether AMZN stock is worth buying or not by looking at the reasons to buy and why not to buy Amazon stock in 2023.

Strengths - Reasons to Buy Amazon Stock

Promising future: Amazon has embraced a multi-fronted growth approach by launching multiple competitively advanced affiliates – all aimed at guaranteeing its sustainability. Most of these are already doing well and give the company a massively promising future.
Strong financials: One of the biggest factors influencing AMZN stock prices is its revenues. And in the last five years, Amazon's revenue has been on a steady uptrend – rising from $177 Billion in 2017 to a projected $520+ Billion in 2022.
Stock is expected to bounce back: At the time of writing, Amazon stock has shed as much as 50% of its 2021 peak prices – its biggest dip since the dot-com market crash. Most of the factors driving AMZN stock prices down are, however, temporal, and Amazon shares are thus expected to bounce back.
Resilience: Amazon is a resilient stock and has survived several economic meltdowns. This has helped it maintain a steady uptrend for its share price and company revenues. We expect this to continue in the foreseeable future.

Weaknesses - Reasons to Buy Amazon Stock

Increasing competition: Amazon faces a lot of competition from both startups and established brands on the many business fronts it seeks to dominate. These include competition from the likes of Shopify and Alibaba in eCommerce, Apple and Amazon in digital streaming, IBM and NVIDIA in AI technology, and more. These threaten to eat into its market share – both locally and internationally.
Challenging macroeconomics: Challenging political and economic factors across the world, such as the ongoing Russia-Ukraine war and a disrupted supply chain, have seen AMZN shares shed 50% of their value. In 2023, most financial analysts expect the world economy to enter into a recession and collapse. This impending market collapse implies that today may not be the best time to start buying Amazon shares.

For more guides on how to buy shares check out our other stock buying guides:

Your capital is at risk. Other fees apply.

Conclusion - How To Buy Amazon (AMZN) Stock

Amazon has been one of the fastest-growing companies in the last two decades. It has also been one of the best-performing stocks of the last two decades, having rallied by more than 100,000%. And in this guide, we have provided you with a comprehensive guide on how to buy Amazon stock in 2023.

We started by telling you about the best Amazon share brokers and discussing the factors to consider when choosing a stockbroker. We then told you everything you need to know about Amazon company and its past stock price action. And to help you decide if Amazon is worth buying in 2023, we discussed the reasons to buy and not to buy Amazon stock.

Want to jump straight to buying Amazon shares today? Consider using the step-by-step buying guide that we have discussed above. It teaches you how to buy Amazon's shares commission-free on eToro with as little as $10.

eToro – Buy Amazon (AMZN) Stock With 0% Commission

Open an account with eToro, deposit some funds with USD, and finally – buy Shares from just $10.

eToro stocks trading

Your capital is at risk. Other fees apply.

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How To Pick Stocks: A Complete Guide for New Investors

FAQs How To Buy Amazon Stock

How can I buy Amazon stock today?

Start by registering a stock investor account with a regulated broker like eToro or Webull. Deposit funds therein and open an AMZN buy order.

Does Amazon pay Amazon stock?

No, Amazon has never paid dividends. Instead, most of its revenues are dedicated to growing existing affiliates, acquiring new outfits, and setting up new businesses - all of which help grow its share value.

When did the Amazon stock split take place?

Amazon stock has undergone four stock splits. First in 1998, twice in 1999, and its most recent in June 2022. Cumulatively, the original Amazon stock has been divided into 240 equal shares.

How much do I need to start investing in Amazon shares?

At the time of writing, the Amazon stock price is hovering around $95. However, most online brokerages support fractional shares ownership. eToro, for instance, will let you start buying shares with as little as $10, while Webull has a trading minimum of $5.

Should I buy Amazon shares today?

The majority of expert share investors are confident that Amazon shares are a buy and expect their value to continue rallying in the foreseeable future. They are confident that the many factors causing its recent price crash are temporal and will rebound soon.