Amazon- one of the biggest companies on the internet in E-commerce. It was founded in Seattle village in Washington state by Jeff Bezos (Born in 1964) in 1994 and went on internet on 1995. Initially, amazon was recognized as a book seller on the internet. But soon Jeff started to sell video games, song and movies CDs, electric appliances, furniture, toys, etc. Along with America, amazon has its branches in Germany, France, chin, England, Canada and Japan also.

Jeff Bezos- Founder of Amazon.com

Jeff’s mother was just teen ager when he was born. His parents’ marriage was not that successful and they get divorced after one year of marriage. Jeff’s mother got married again when he was 5 years old. Since childhood, Jeff was curious and showed interest in machines and science. Jeff’s family was financially strong that’s why they owned 25000-acre land. His parents were the chair persons of the America’s Nuclear Commission. They took early retirement and started their own business on the land like tourism, farming, etc. Jeff helped them in their business.

Jeff went to Princeton University for graduation but instead of taking physics, he chose his favorite subject, Computer Science. He joined then an MNC as a financial analyzer. There he got a chance to work with the help of computer and internet.

One day he thought that why doesn’t he start an internet-based company where people can buy books. He founded a company and stared to call it as cadabra.com but it sounds like cadaver (Dead Body) so he changed it to amazon.com. “Amazon gives everything to living animals from the nature likewise amazon.com will give every possible book the people they want”, Jeff used to say this when someone asked about the name of the.

Amazon Logo (A ray going from A to Z indicates that amazon sells everything)

In 1998, he used to sell only books. In 2019, he sells whatever he wants, because he left his comfort zone and fight with his fear. When Jeff left his corporate job and withdraw $300,000 from his retirement savings to start amazon. He knew very little about the internet and about online book sell but saw an opportunity. Despite of Berners and Nobles and Borders book store, he knew that the future would be on internet.

In 1997, amazon went public and brought his IPO so that people could by amazon’s shares. Amazon used a strategy which was actually different form strategies of other internet-based companies. Other companies increased their share valve as much as possible and tried to maintain it. Amazon played totally different and Warned investors of about 70% chances of failure in initial 4 to 5 years as it was mentioned in first annual letter of company in 1997. So, people who were interested for long term investment and profit purchased amazon shares.

It was a wonderful strategy played by amazon because in 2001. Due to dot com burst (the period early in the year 2000 to 2002 when share prices suddenly went down as hundreds of companies doing business on the internet failed or lost most of the value of their shares) all the internet-based company’s share price dropped significantly and investors faced considerable losses but at the other hand amazon was growing slowly but continuously. Jeff believes that failure and inventions are inseparable twins. To invest you have to do experiment and if you know that it is going to work then it is not an experiment.

Amazon always purchase the land nearer to airport in America, china and Germany so that they could stock the material and send the customer order to the nearest airport which will reduce the transportation cost. Whenever any internet user or customer orders something, that order get transferred to nearest stock yard and that ordered thing (Book, toy, etc.) is being courier to the customers address directly form that stock yard. Now, amazon started Amazon Fresh in America where you can purchase online perishable food also including vegetables and grocery, with home delivery facility.

Now, amazon has a deal with local shoppers where the local shopper can sell their products on amazon on commission basis (amazon charges commission in percentile on each sell). As per the survey, 40% sell is taking place due to this deal. Also, if someone promoting a amazon based product on their own site and if a customer purchase that product due to that promotion then amazon pays some commission to that company. It is called as “Affiliate Marketing”. Due to this affiliate marketing, 1.3 million companies signed a deal with amazon in 2007. In 2007, people pre-ordered 2 million copies of new Harry Potter series book even when it was not then published and created a history.

A good thing about amazon is that amazon allows to anyone to write his or her feedback about the product he/she purchased. For example, he customer purchased a book and later he found that the book sucks, he could write his feedback about that and can give zero stars to that book. But some writer and publishers showed discomfort with this but Jeff stood still on his decision. “Customer must get a crystal clear and transparent product and the customers trust must not be broken” Jeff answered to those who questioned to the feedback facility. Around 615 million people visited amazon in the year 2007.

Amazon launched Kindle in 2007. Kindle is a digital device which contains thousands of books in digital form. You can add any book you want or you can remove the book you don’t want. It is a mobile device so you don’t need to carry so many books with you. Instead just carry a kindle and read any book you want, anywhere. I agree that a digital device can of replace a book but technology is making human life easier and simple.

Amazon Kindle

Simple things we can learn from the Jeff Bezos:

Focus on the customers: In my last post, The Six-Vein Sprit Sward of Alibab.com, I mentioned that customer satisfaction is must. Make sure that the core of your business is the satisfaction of the customers. Hunt relentlessly for what makes your customer satisfied, and sell what the customers want or sell the solution or complete the need.
Practice Frugality: It is true that every effort is converted into success but it is equally true that success does not come without efforts. Make each effort count. Make plan and then execute. Proper planning will save your time up to 50% while executing it. I have mentioned the about planning and executing in my another post as 7 Steps For Setting and Achieving Goals in Life.
Think for the long term: Don’t hesitate to take the decisions which won’t be accepted in present but will give results in long term.
Worth it then risk it: The biggest risk you can take is not taking any risk. A calculated risk will always give you something either profit or a lesson.
Stay Hungry: The road which lead to success is full of disappointment. Never accept the status which says be yourself. Challenge it and keep searching your potential and be better than yourself.

This is the short and simple summary of The Everything Store: Jeff Bezos and the edge of Amazon written by Brad Stone. If you are interested to read this book then click the link below and purchase the book with 10% discount.

The everything store: Jeff Bezos and the edge of Amazon:

https://amzn.to/3yADeEV

To purchase the Amazon Kindle:

https://amzn.to/2VFgQpD

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