Tech

Jeff Bezos’ Inspirational Story of Building Amazon

How was Amazon founded, which started as a book sales site and turned into the world’s largest e-commerce site? Let’s take a closer look at the inspiring founding story of this huge company that made Jeff Bezos the richest person in the world.

In terms of income Amazon, It is the world’s largest internet-based company. Jeff Bezos, When he started selling books online in 1994, he knew that the best way to be successful on the Internet was to grow big and fast. Amazon is one of today’s internet giants; but of course it didn’t come into existence by itself overnight.

Today, Amazon sells anything and everything you can think of, from books to groceries and shipping. Amazon, when it comes to shopping It has become the most important stopping point for people and has a lot of plans for the future. In this article, we’ll explore Amazon’s early days and look at key moments that played a role in its growth, and try to understand why it’s so popular.

Beginning and founding

Amazon, or Amazon.com in full, was originally in July 1994was founded by Jeff Bezos, who was working as a hedge fund manager on Wall Street at the time. Originally his name was substituted for Amazon, as a reference to the word “Abracadabra”. “CadabraIt was thought to be ”; however, the idea was abandoned when Bezos’ lawyer told him that this reference to magic might be a bit too vague and difficult to understand. Also, when most people heard the word Cadabra on the phone, they confused it with the word “Cadaver” meaning cadaver, which, as one might imagine, was not very desirable.

So Bezos and his then-wife, MacKenzie Tuttle, sought new names for their potential new venture. A short time later, Bezos; Awake.com, Browse.com, Bookmall.com, and Relentless.com recorded their names and even settled on Relentless.com. Even today, if you search for Relentless.com in your browser, you will be redirected to Amazon.com.

Jeff Bezos stumbled upon the word ‘Amazon’ while scrolling through the dictionary for inspiration, and specifically, Just like the Amazon river is one of the largest rivers in the world, thought the name was a perfect fit for his company, as he predicted that his online store would be the largest in the world. This is the main reason why Amazon is called the ‘everything store’. Thus, Amazon was registered on November 1, 1994. The name was taken care of, and it was time to find something to sell.

Bezos knew at the time that he wanted to create some kind of online retailer; However He wasn’t sure exactly what to sell. Relatively easy to source, package, and distribute after some research decided on the book. Amazon was not the first company to implement this business strategy. Computer Literacy, a Silicon Valley bookstore, had already started selling its products online as early as 1991, long before Amazon.

Jeff Bezos

What made Amazon different was that it promised more convenience. From the very beginning deliver online orders directly to a customer’s address anywhere in the world It was built on the business model.

As we all know, Amazon today is much, much more than books. That’s always been the plan, according to Bezos. Amazon has never been a consumer-only retailer, Bezos claims. According to Bezos, from the very beginning, Amazon was a technology company whose main job was to facilitate customers’ online transactions.

When did Amazon start selling things other than books?

As you can see, it all started with selling books online. This was a groundbreaking innovation for the time, and few companies other than Amazon provided such convenience. Alright, When did non-books start selling on Amazon?

After following Bezos’ initial business plan for a while, the company In 1998, it also started selling music and computer games. Amazon, which also bought online bookstores in the UK and Germany, has taken its services to international dimensions. With the advent of the millennium, Amazon is now; It began selling many products, including consumer electronics, video games, software, home improvement products, toys and games.

Amazon in the mid-2000s, Amazon Web Service (AWS) launched. This innovation was also very much in line with Bezos’ idea that Amazon was actually a tech company rather than an online retailer. By 2006, Amazon expanded its AWS portfolio with its cloud computing platform, Elastic Compute Cloud (EC2), and later added Simple Storage Service (S3).

Like the company’s EC2 and S3 with digital services enlargement would significantly increase its earnings. These two services make up the bulk of AWS’s revenue today. first with 2007 Kindle e-readers are starting to appear. These relatively lower-cost handheld tablets would stimulate the e-book market, and by 2012 Kindle would account for about 50% of Android-based tablet sales.

Jeff Bezos

With this success of Kindle, Amazon in 2011, With Amazon Publishing service entered the e-book publishing market together. That same year, Amazon announced that e-books were selling more than traditional print books. Since then, Amazon has continued to expand and grow, acquiring fresh produce shipping, drone delivery and many other services, and even launching at its own airports.

When did Amazon start growing in popularity and when did the company go public?

During the founding of the company, many of Bezos’ peers and critics expressed skepticism about this business model. The harshest of these criticisms often came from the financial papers, and the company Amazon.bomb they often vilified. Many of these critics, especially those following the case and establishing their own sites, argued that Amazon.com would ultimately lose out on more established booksellers.

The fact that Amazon didn’t make a profit until the first quarter of 2001 didn’t help much either. Bezos never lost faith and did not take the opponents seriously, describing them as people who could not see the potential of the work. Bezos has always argued that to be a successful online retailer, Amazon must grow fast; that’s how it happened. And what growth!

Jeff Bezos

When the calendar shows December of 1996, The company’s customer base had already reached an impressive 180,000. In October of the following year, the figures showed approximately 1,000,000 this time. The company’s earnings reached approximately $148 million in 1997, which is; That was a huge jump compared to the previous year’s earnings of about $16 million.

Amazon has continued its life as a private company up to this point, but Bezos soon realized that; If he wanted his company to continue growing, he needed much more than private investment. Like this, Amazon went public in 1997 and managed to raise an impressive $54 million on the NASDAQ exchange. In addition to cash, the company has also started stock sales to finance its aggressive growth and acquisition strategy. By 1998, Amazon’s earnings had reached 600 million.

With this giant rise of Amazon, Bezos also managed to catch the eye. Also, Time magazine He named Bezos ‘Person of the Year’ in 1999. At that time, Amazon also launched the now very lucrative Affiliate program. Other companies participating in the program were able to sell Amazon’s products on their own platforms, and Amazon would prepare and ship the orders placed – and thus both parties won. The affiliate program has proven itself to be a very logical step. While the number of shareholders of the company was 1 in 1996, this number was over 350,000 in 1999.

How Amazon is using technology to its advantage to increase productivity

In addition to its universal appeal as a one-stop shop for buyers, Amazon does not neglect to take advantage of the latest technological innovations to increase its efficiency and customer satisfaction. Amazon, to process orders and track the process He has shown many times that he never shy away from testing the latest innovations in technology, from using artificial intelligence to experimenting with the use of robots and drones for delivery. However, this approach has both good and bad sides.

For example, a machine-learning recruitment tool the company is using in the final decision process Although not used, it was noticed that it was biased towards certain groups of people, especially women, for software developers and other technical positions. After the discovery of the problem, Amazon immediately discontinued the product.

In addition to hiring, Amazon also adopts an automated process for dismissals; however, such systems have rightly been the target of much criticism, as they make decisions without considering factors such as one’s private life and situation. As another example, “Anytime Feedback Tool” Software solutions like this allow staff to praise or criticize their colleagues.

The same software also monitors an employee’s performance against specified Key Performance Indicators (KIPs) while processing orders from customers, and can even automatically fire that employee if this performance is below expectations. While errors are likely and expected, Amazon because of the pressure he inflicted on some of his staff has been widely criticized. However, it should be noted that Amazon flatly rejects such an application.

A Amazon representative, In an interview with MIT Technologies, “It is certainly not true that employees are terminated by an automated system. We never fire an employee until they are sure they receive our full support, including dedicated coaching and additional training to help them improve.‘ he stated.

In addition, Amazon provides for finding and receiving orders. like using robots, increasingly adopting automated ways to increase efficiency in logistics centres. In addition, manpower remains an essential part of Amazon, especially when it comes to packaging and customer service. At least for now.

Why is Amazon so popular?

Jeff Bezos

in its early days What makes Amazon so appealing is, the conveniences it offered; a potential customer no longer had to go to a physical bookstore to get the book they were looking for. The comfort of searching, choosing, purchasing the book you want from your home and having the product delivered to your doorstep within a few days was an incredible comfort at that time. With the expansion of the product range it offers to its customers, Amazon’s attractiveness has increased in the right proportion. However, in fact, this success is not related to the products they sell.

Amazon owes its success, like many other companies, to the services it offers. These services have earned the company significant customer loyalty and large profits in the long run. Another innovation that Amazon offers to its customers is is the recommended product function. With this function, which recommends other products that customers can buy based on the products they have purchased before, Amazon has managed to multiply its earnings even more. Adding customer reviews to products also helped foster a kind of “customer community” that made products more attractive to potential buyers.

In recent years, Amazon has become the second in history after Apple. The success of being a company with a market value of 1 trillion dollars achieved. Amazon saw record growth in 2020 after announcing its plan to set up its second headquarters in New York but canceling that plan after incoming political pressure.

With the pandemic in 2020 together, when people had to stay in their homes, Amazon and similar online retail companies have added to their fortunes. The last important news in Amazon’s adventure of more than 25 years was the announcement that Bezos will leave his CEO position in the company with the fall of 2021. It is not yet clear how the Company will perform without Bezos at the helm; however, considering the past performances, I think it would not be wrong to say that the company will not lose much from its success.

This is of course only valid as long as the call to tear Amazon apart doesn’t get serious public attention. We’ll wait and see over time.