I bet almost everyone in the United States knows what these words refer to.
Amazon.com was conceived as a bookstore by Jeffrey Preston Jorgensen, a guy who graduated in Electrical Engineering and Computer Science. It was founded in 1994, right before the dot.com bubble. Despite the first years of losses (its first profit only came in 2001 Q1), Amazon.com had survived. And it is now a prospering multinational e-commerce company based in Seattle, with 65.600 employees across the globe. It is operating in nine countries in America, Europe and Asia, and is planning to expand. Every year it acquires companies that support its business model and contribute to fulfill its mission of being the earth's most customer centric company. Among its acquisitions across the years, it is worth to mention: IMDb, Alexa, Mobipocket, AbeBooks, LoveFilm.
Today Amazon offers every product that customers
might want to legally buy online, from A to Z – and, by the way, this is the logic behind
its logo. Books, CDs, DVDs, gardening tools, Halloween costumes, televisions, bottle of wine,
laptop desks to attach to cars’ steering wheels (true story), Playmobil security
checkpoints (true story), laparoscopic gastric bypass kits (again, true story).[1]
Almost everyone could sell its products on Amazon.com, which then keeps a share on
each sale. Almost everyone could sell on its own website products redirecting
to Amazon, keeping a share on each sale. Each step of the transaction happens
within Amazon’s system, allowing building a huge database about customers’
behaviors. Amazon’s patent on the 1-click technology allows users to decrease
the time spent to terminate purchases on its website. Amazon Prime allows customers
to have unlimited free shipping after the payment of a small yearly amount.
Everything is put in place to improve the overall customer experience.
But its operations do not stop to selling retail
goods. Amazon also produces electronic devices: Kindle, an e-book reader, and
Kindle Fire, a tablet computer. And it sells the digital content to be read on
those devices –its sales of e-books outnumbered hardcovers’ sales in July 2010.
Before the introduction of Kindle Fire, Amazon was using AZW, a proprietary e-book
format, which was not supported by other e-book readers. Now it has introduced KF8,
a format that supports HTML5 and CSS3. Hoping to become the market leader for
tablets and e-book readers, lock customers in and make huge revenues on selling
entertainment content, Amazon is pursuing an aggressive pricing strategy for
its Kindle Fire– “the best tablet at any price” – selling it at an amount that
is lower than costs for production. Under its publishing unit, it publishes romance
novels, thrillers, cults, books that have not yet been translated in English, etc.,
in physical and Kindle formats.
With Amazon Web Services, it sells to other
websites and client-based application remote computing services (such as
storage and cloud computing services). Making its invaluable database publicly
available, it allows external programmers to tap into it and build APIs so that,
on the one hand, it gains favor with the 21th century technology gatekeepers,
and, on the other hand, it enhances the chances to increase its revenues in
unpredictable ways.
In Tim O' Reilly words, "Amazon isn't just an e-commerce site". It is THE information hub for many industries. It is one of the leading companies in the Internet era.
In 2012 Q3, Amazon net sales amounted at $13.81
billions. Revenues will keep growing. With its working business model, Amazon will lead
the future of e-commerce: everyone is waiting for its next moves.
Jeffrey Preston Jorgensen is the #11 richest
person in America.
Jeffrey Preston Jorgensen is Jeff Bezos.
Jeffrey Preston Jorgensen is Jeff Bezos.
[1] http://www.cracked.com/article_18939_8-stupid-amazon-products-with-impressively-sarcastic-reviews_p2.html