The Story of Amazon.com: How a Bookstore Conquered the Internet

Jack Chapple
2 Sept 201815:43

Summary

TLDRThe video script narrates the journey of Amazon from its modest beginnings to becoming a dominant e-commerce giant. It highlights Jeff Bezos' decision to start Amazon, the strategic choice to sell books initially, and the company's expansion into a vast marketplace. The script also delves into Amazon's business model, revealing that it operates at a loss on direct sales but compensates through profitable subsidiaries like Amazon Web Services (AWS). It touches on controversies surrounding Amazon's tax practices and working conditions, and concludes with a promotion for a new startup marketplace, joysk.com, offering an alternative to Amazon's competitive platform.

Takeaways

  • 🛒 Jeff Bezos is the founder of Amazon.com, an online marketplace known for its vast product selection.
  • 📈 Amazon offers over 100 million different products and shipped about 5 billion items in a year, accounting for nearly 40% of all internet sales.
  • 💸 Contrary to popular belief, Amazon operates at a loss on nearly every purchase made through their website.
  • 🚀 Amazon started with modest beginnings in the 1990s, focusing on selling books due to their high demand and large title availability.
  • 📚 The company expanded its product range beyond books in 1998, a move that significantly increased its revenue to nearly one billion dollars.
  • 📈 Amazon went public in 1996, with its stock IPO'ing at around $1.50 per share, which would be worth approximately $10 million today.
  • 📉 The company faced challenges during the dot-com bubble, with its stock price dropping from a high of $113 to a low of $5.51.
  • 🛍️ Amazon introduced Amazon Prime in 2005, offering free two-day shipping on select products, which initially caused the company to lose money on each shipped item.
  • 🌐 Amazon Web Services (AWS) was launched in 2005 as a subsidiary, providing cloud computing services and becoming a significant profit driver for Amazon.
  • 💼 Amazon has been criticized for not paying taxes, having anti-competitive practices, and poor working conditions in their warehouses.
  • 🆕 The script also mentions a new startup marketplace called Joyce.com, which is in the alpha testing stage and aims to offer an alternative to Amazon for both buyers and sellers.

Q & A

  • Who is the founder of Amazon.com and what is their claim to fame?

    -Jeff Bezos is the founder of Amazon.com, which is known as an online marketplace where consumers can buy a wide variety of products.

  • How many different products does Amazon offer for sale?

    -Amazon offers over 100 million different products for sale.

  • What percentage of internet sales does Amazon account for?

    -Amazon accounts for nearly 40% of everything sold on the internet.

  • How does Amazon make money if it loses money on nearly every purchase made through their website?

    -Amazon makes money through various subsidiaries, such as IMDb, Audible, Zappos, Twitch, and Whole Foods, as well as through Amazon Web Services (AWS), which provides cloud computing services.

  • What was Amazon's original name before it became Amazon.com?

    -Amazon was originally named 'Cadabra, Inc.', but the name was changed after a lawyer misheard it as 'Cadaver, Inc.' Bezos then considered 'Relentless' before finally settling on Amazon.com.

  • Why did Jeff Bezos decide to start an e-commerce company?

    -Jeff Bezos decided to start an e-commerce company because he noticed the massive growth opportunity presented by the internet and did not want to have regrets later in life about not pursuing it.

  • What was the first product category Amazon focused on selling?

    -Amazon initially focused on selling books due to their high demand, the large number of titles available, and the low price point.

  • When did Amazon go public and what was its initial stock price?

    -Amazon went public in 1996 and its stock IPO'd at the equivalent of a dollar and fifty cents per share.

  • How did Amazon expand beyond just selling books?

    -In 1998, Amazon decided to expand beyond books and started selling a wide variety of products, which was the first step towards becoming the 'everything store'.

  • What is Amazon Web Services (AWS) and how does it benefit Amazon's overall profitability?

    -Amazon Web Services (AWS) is a subsidiary company that provides cloud computing services, hosting websites and applications for customers and businesses. It has a high profit margin and makes up nearly all of Amazon's profit, compensating for losses incurred by Amazon Marketplace.

  • What challenges has Amazon faced in terms of public perception and business practices?

    -Amazon has faced challenges such as allegations of not paying taxes, anti-competitive advantages over other businesses, and poor working conditions in their warehouses.

  • What is the relationship between Amazon's Marketplace and AWS in terms of revenue and profit?

    -While Amazon Marketplace makes up a larger portion of Amazon's revenue, it operates at a loss. AWS, on the other hand, has a significant profit margin and contributes the majority of Amazon's overall profit.

Outlines

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Mindmap

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Keywords

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Highlights

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Transcripts

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Étiquettes Connexes
Amazon HistoryE-commerceJeff BezosBusiness StrategyTech BubbleAmazon PrimeAWS CloudMarketplaceStartup AdviceOnline Retail
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