Does Amazon even need an introduction? All of us, at least, may have heard of Amazon, a world-renowned e-commerce store where sellers showcase their wares and shoppers buy the products they love. But you might not know that the company has a wide range of products, including Amazon Go, Amazon Prime Video, and Amazon Pay.
Currently, online shopping is an integral part of everyday life for most of us. Thus, the number of e-commerce companies in the world is increasing, but no company has been able to compete with Amazon. Amazon is still the number one e-commerce platform, where all big and small companies display their products, and buyers prefer to shop online from here.
But the question arises, how did Amazon become so successful? How come a budding entrepreneur, starting a business specializing in selling books, managed to build a global empire? Let’s find your answers in this article, in which we will tell you how Jeff Bezos made this business a success.
Jeff Bezos in the United States established Amazon.com in 1994. It is an e-commerce giant that has joined the 1 trillion valuation club. Subsequently, it expanded to other countries to increase its market. Amazon started in India in 2013 and quickly became one of the biggest e-commerce platforms. When the company started it was selling books and after a while it started selling electronics, jewelry, toys, clothes, game accessories and other stuff.
However, apart from being an e-commerce company, Amazon has broadened its horizon by branching out into several areas like cloud computing, publishing, on-demand music, consumer electronics, and video streaming.
AWS (Amazon Web Services)
Amazon Web Services is a cloud platform from Amazon that provides IT infrastructure services to businesses in the form of web services, commonly known as cloud computing. Amazon introduced its web services to the world in 2006 and on March 2, 2021. PGA TOUR chose it as its official cloud provider.
Amazon was launched in 2018 and is a series of convenience stores that run under Amazon. These stores can be found in the United States and the United Kingdom. The idea behind the stores is that customers don’t have to deal with cashiers in the store. Customers can pay for their purchases at self-service payment terminals.
Amazon Prime is an OTT video streaming platform from Amazon, where you can watch TV series, movies, web series and other video content by subscribing to it and paying a monthly subscription. It was introduced to the world in 2016 but is not available in some countries like North Korea, Syria, Cuba, Iran and China.
Amazon Pay is an online payment service provided by Amazon, launched in 2007. Using this payment service, you can pay from your Amazon account for your needs. Fraud protection technology supports this payment service so you can transact securely.
Amazon-founder Jeff Bezos, also the former CEO
Jeff Preston Bezos, an American entrepreneur and industrialist, established Amazon in 1994. He graduated from Princeton University with a degree in electrical engineering and computer science in 1986 and worked for “Fitel”, a communications startup financial. Fitel was working on building a system for international trade. Later, Bezos became the head of development and director of customer service there.
Jeff Bezos became Amazon’s executive chairman after stepping down as the company’s CEO.
Cloud computing chief and current CEO of Amazon-Andy Jassy
Jassy joined the Amazon family in 1997. He holds an MBA from Harvard Business School and was the driving force behind the launch of Amazon Web Services (AWS).
How did Amazon get started?
In 1994, Jeff left his position as vice president of DE Shaw and Company to launch his startup. He wanted to take advantage of the internet boom, slowly taking the world by storm. Jeff Bezos jokingly refers to the founding of Amazon as a “regret minimization framework”.
While driving from New York to Seattle, Jeff composed the first plan for his company. At first they called it Cadabra, Inc, but Jeff changed it to implacable.com when he learned that people misheard him as a corpse (meaning corpse). Finally, the company was named Amazon because his friends didn’t like the name.
Initially, Jeff Bezos’ parents invested $250,000 in his business. In 1998, Amazon acquired Junglee Corporation, a database technology provider that helps shoppers find products online. Additionally, he also acquired “Planet All,” a social networking, calendar, and address book website, to expand.
In 2005, Amazon started crowd-sourcing with the help of “Amazon Mechanical Turk”. Moreover, in 2006, Amazon finally entered the cloud computing industry with “Amazon Web Services” (AWS) considering the large scale of the industry. Also, in the same year, Amazon ventured into the video-on-demand business with “Amazon Unbox”.
Amazon’s very first e-reader, Kindle, was released in November 2007, which was greatly appreciated by users. In the same year, the world discovered Amazon Music. Another famous product from Amazon is Alexa, “an AI virtual assistant technology that Amazon created.
Amazon name and logo
Jeff Bezos’ mission was to make his company the most important online shopping platform. That’s why he named it “Amazon”. The company logo has remained the same since 2000 and features an arrow running from A to Z, indicating that the company aims to provide any product a buyer desires. Also, the arrow forms a smile, indicating that customers will be happy after shopping on Amazon.
Amazon Growth and Revenue
Amazon started as a small online bookstore, but is currently the largest marketplace in the world. The reason is that the company has diversified and experimented with many backgrounds and, above all, worked on its foundation.
If you look at Amazon’s sales, you will notice that its sales have grown at a fairly rapid rate. On the other hand, diversifying its products and considering the bright future of e-commerce and e-commerce at the right time has helped it become a giant.
Amazon has various competitors as the world gradually advances. It has competitors in sectors of different domains such as web services, merchandise, media and electronics. The list of its competitors includes:
- Alibaba Group
Amazon’s key to success
Amazon is working extremely well to increase its market all over the world. Amazon’s next day delivery, quality packaging, talented management, amazing customer service, free shipping and returns, make it reliable and trusted among customers. According to Jeff Bezos, the key to Amazon’s success is based on four key principles:
According to Bezos, to become a successful entrepreneur and want to stay in the market longer, you need to focus on your inventions and ideas rather than your competitors. If you strategize by looking at your competitors, you won’t survive any longer.
The urge to invent
Jeff Bezos says, “We need something different and unique, something customers are going to like. To be a successful entrepreneur, you must see the problem but try to invent opportunities and solutions.
long term relationship
Basic planning and patience are important factors in establishing a great business, Amazon’s success totally depends on long-term planning which helps retain customers for a longer period of time.
Amazon’s values are extraordinary and the systems are well planned, updated and tested as necessary. Bezos says such systems will identify faults at the root and correct them before a major problem emerges. Using smart systems saves energy, money, time and your reputation. »
Amazon Future Prospects
Amazon’s outlook includes expansion into machine learning, robotics, home automation and space exploration. However, it also plans to enter the health technology and food delivery business later in the future.
Although Jeff Bezos also claimed to have introduced “Amazon Prime Air Drone Delivery Service” to use it to deliver lightweight packages to customers via drones. Even the company is working to make its delivery system more environmentally friendly by introducing electric vehicles into its delivery system.
Given Amazon’s plan for India, the company plans to create one million new jobs in India by 2025. In January 2020, Jeff Bezos claimed that Amazon plans to invest $1 billion in India to help 10 million merchants advertise their businesses online.