Amazon tycoon Jeff Bezos, who came up with the idea of Amazon in his garage and wrote up the business plan on the drive from New York to Seattle, continues to impress the industry. Amazon.com was created in 1994, it began its service in 1995 and ten years on it is now the world’s largest online retailer. Initially it began as an online bookstore, but soon after became more diverse in products by including DVDs, electronics, homeware, clothes, beauty products and even food.
Bezos had read a report about the fast growth of the internet usage and decided to set up a plan to create the site. The CEO’s net worth is now $32.2 billion, which shows that Bezos’ vision has driven the retailer from obscure beginnings to a multi-national powerhouse. This also indicates why the company remains innovative and goes on to grow and succeed.
Amazon had 164 million user visits to the site in the first quarter of this year, with EBay behind with 104 million. They’re increasing sales and made $300 million in gross profits, the reason for their successful is because their main mission is to get the best value product for their customers. Working with third party sellers is also a key factor into why Amazon works so well and has a positive structure.
The nature of the company is to allow consumers the chance to buy products for less money and also leave reviews for the items purchased. With a strong focus on delivery, Amazon is well renowned for its quality of delivery as there are six options to choose from. Some of these include
Last year Amazon had net sales revenue of $74.45 billion dollars and its brand value is $45.73 billion dollars. According to Statista, Amazon had a reported $126 million loss this year due to the company sacrificing short term profits for long-term growth.
They have always been a company more inclined to focus on customers rather than money. There is a huge network of massive warehouses across the world in different continents, full of products. Their own branded products such as the kindle were a huge success, with newer models having software to play videos as well as playing audio. Amazon sold $4.5 billion in Kindle device sales last year. Recent controversies surrounding Amazon is that the company are involved with having conflict with Hachette and Disney. It is unclear why Amazon is no longer accepting pre orders of Disney movies Maleficent and Captain America: The Winter Soldier, though it is clear that Bezos is continuing to put up a fight.
Publishing company Hachette also are in a battle with Amazon over publisher’s e-books, as Amazon wants to sell books for cheaper. According to Forbes, Hatchette says that ‘Amazon is just motivated by profit and is looking to corner the e-book market at the expense of authors.’
Both companies are trying to get readers on their side and even trying to involve authors such as JK Rowling. With regards to Disney, it will bring a massive impact to the company if they turn away from a media giant that owns Pixar, ABC, Marvel and Star Wars.
However despite this, Amazon are still a success because they prioritise customers and are innovative as they think of ideas first, leading them in first place in the online retail business.