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Just looking at Q4 results [0], looks like operating margins for the businesses are:

US Retail: 5% [$2,251 / $44,124] Intl Retail: -3% [-$642 / $20,849] AWS: 29% [$2,177 / $7,430]

Really striking diff between Retail and AWS biz.

Walmart, for what its worth, had operating income of $20B on $500B in revenue, so about 5% there too.

Operating margin is not Gross Profit/Total Revenue, its Operating Profit/Total Revenue. You were not surprised by the number 37% you got?

That's the gross margins for ALL of Amazon's business, so the fat profits of cloud are included. Their margin on physical goods must be lower.