Success story of Amazon: how to quit a comfortable life and create a revolutionary company
The success story of Amazon is unlike other company biographies. Unlike most breakthrough startups, Amazon was not born out of desperation or as a result of the desire of young entrepreneurs to change the world. By the time he started his own company, Jeff Bezos was a wealthy top manager and a happy family man. But in the late 90s, during the birth of Internet business, he could not resist the desire to create a company where people could buy any product.
How did Amazon appear?
In 1994, Jeff Bezos was a successful vice-president of the D.E. Shaw investment fund. He maintained a decent condition, he owned a house, enjoyed the respect of colleagues and competitors. However, the future billionaire thought he could do more.
In his company, he oversaw the Internet business and could not help but notice how rapidly this segment is developing. He believed that soon a full-fledged online store would appear on the market, where you can buy everything and get delivery to your home. Then, in the spring of 1994, Jeff Bezos decided that he would create it himself.
He quit his job and enlisted the financial support of his parents; the businessman moved to Seattle, rented a house and set up Amazon’s first office in his garage.
The name was not chosen by chance. Firstly, the letter “A” is the first in the alphabet, and therefore the company is in the top lines in the catalogs. The Amazon is the largest river in the world, whose flow can be compared to the power of the Internet, which Bezos already felt at that time.
Initial stage of the success history of Amazon
The first product Amazon became the book. It was the perfect solution. It was easy to sell them, because the buyer did not need to interact with books, such as clothes, to make a decision on a purchase. Annotations and cover photos were enough. Already in the first month of operation, the company began sending parcels across the country, and its revenue per week was $ 20,000.
Amazon’s rapid growth has brought it the attention of investors. The funds received went to update the main resource of the platform – the site. In particular, this is where reviews first appeared.
Managed his brainchild, Jeff Bezos used a strategy that was non-standard for those times. Instead of paying investors, profits returned to the development of the company. This approach helped her survive the crash of the dotcoms, when in the early 2000s hundreds of Internet companies fell to the bottom. Amazon, on the other hand, was able to withstand domestic resources and even absorb faded competitors. Even earlier, in 1997, the company held an IPO and was valued at $ 438 million.
Future corporate success
In the late 90s and early 2000s, Amazon introduced new products for sale. DVDs, music CDs, children’s toys, electronics – the sale of these products has expanded the audience of customers and has had more than a positive impact on the company’s profitability.
At the start of the business, Bezos believed that if by 2000 his company would sell $ 144 million a year, it would be a success. In fact, sales of Amazon at the beginning of the century almost reached 2 billion.
In the following years, the company did not stop growing. Its capitalization, as of September 2018, amounted to an impressive $ 950 billion.
A corporation delivers goods using drones, opens offline stores where it is not necessary to stand at the checkout counter — the system itself writes off the cost of a person purchased from an Amazon account when it leaves the store. On the site itself, it seems, you can buy absolutely everything, and every third online purchase in the US takes place on Amazon.
There is no reason to believe that the brainchild of Jeff Bezos will have problems in the future. The world is increasingly going on sale through the Internet, and where this is not observed, the corporation’s physical shops will probably soon appear.