​Amazon: from a mere bookstore to an e-commerce giant 📚🌅

Country: the USA 🇺🇸
Valuation: $1,7 trillion
Business model: marketplace

In the e-commerce industry, Amazon is one of the key players making billions of dollars yearly. However, Jeff Bezos started it as a humble online book store. Today the company offers a wide range of goods and is considered one of the richest e-commerce giants.

By the age of 30, Jeff Bezos had achieved a lot. In 1994, he held the post of Vice President of DE Shaw & Co and earned thousands of dollars. However, Jeff came up with a new plan for success.

While surfing the Internet in search of investment projects, he came across enticing statistics. According to this, online trading was growing by 2300% a year. The potential of the Internet boom seemed incredible.

Bezos listed 20 products that were likely to be in great demand on the net. He included software, CD, and books. What sparked Bezos’ interest was books. Though there were tons of printed books, even the largest sellers could store not more than thousands of them. However, a virtual shop could provide access to millions of books.

Jeff decided to quit his job and set off to Seattle. He managed to collect $1 million from his friends and relatives which helped Bezos rent a garage — the first Amazon’s office.

Within a year, Jeff with a team of 5 members started to collaborate with publishing houses and develop a trading platform. He wanted to make not just a bookstore, but a comfortable space for book lovers.

The website was launched in 1995 having a range of 1 million books. That was a true revolution in the book market — nobody had ever reached such scales before. The platform appealed to many for to its interface, prices, and service quality. In the first year, the overall sales amounted to $16 million.

Of course, competitors couldn’t stand idly by such enormous success. Therefore, Barnes&Noble launched a new e-commerce platform for selling books which exceeded Amazon’s sales. Though it didn’t scare Bezos at all and he started to expand the range. Today Amazon has over 30 categories — from digital content to food products.

In 1999, Amazon’s sales reached $610 million having a 85% share of the online books market.

Keys to success
Jeff Bezos was always focused on customers not competitors. That helped him to win clients’ trust and loyalty. He was constantly in search of innovations in order to facilitate customer’s experience even more.

Besides, Bezos always viewed his business from a long-term perspective. It enabled him to develop efficient strategies and outperform competitors.

Amazon's standards are high as well as their systems. They are throughly developed, tested, and updated if needed. Bezos says such systems will identify defects at the root and correct them before a major problem pops up.

From 2016 to 2018, the company’s net income reached $10 billion. In 2018, the capitalization exceeded $1 trillion which made it the world largest company after Apple. Bezos’ fortune to date amounts to $200 billion.

What do you think influenced Amazon’s success? Comment below ⬇️