The Success Story of Amazon

Jeff Bezos, a name that brought a whirlwind change in the world of online retailing. Jeff is an American entrepreneur and e-commerce pioneer, the creator of online store Amazon.com. He is also the founder of Blue Origin, a company that aims to make space travel affordable to ordinary people. A hyper-intelligent, ultra-driven individual, Bezos’s a dual-personality can turn him from a compassionate person to a rough executive within seconds. An extraordinarily ambitious person, Jeff Bezos to this day seeks to push the possibilities of modern technology beyond the imaginable.

 

Jeff Bezos was born on January 12, 1964, in Albuquerque, New Mexico. His biological father, Ted Jorgenson, was one of Albuquerque’s top unicyclists and part of a local troupe the Unicycle Wranglers who put on a performance at county fairs and circuses while Jeff was still a baby. Jeff’s mother, Jacklyn Bezos, was still in her teens when she married Ted, and their marriage lasted for little more than one year.

 

Jeff Bezos attended River Oaks Elementary School in Houston from fourth to sixth grade. He would spend summers at the ranch working on enormously varied tasks such as laying pipe, fixing windmills, vaccinating cattle, and other farm work.

Bezos started his first business at school. It was called The Dream Institute, and it was an educational summer camp for fourth, fifth and sixth graders. There were some books that Bezos required his participants to read. They were: The Lord of the Rings novel by J. R. R. Tolkien, Dune novel by Frank Herbert, Stranger in a Strange Land novel by Robert A. Heinlein, The Once and Future King novel by T. H. White, Watership Down novel by Richard Adams, Black Beauty novel by Anna Sewell, Gulliver’s Travels book by Jonathan Swift, David Copperfield novel by Charles Dickens, and Treasure Island novel by Robert Louis Stevenson, along with the plays Our Town by Thornton Wilder and The Matchmaker by John B. Keane and Thornton Wilder.

 

Bezos, in 1994, moved to Seattle to tap into the potentials of the internet market by opening an online bookstore. He made the decision by drawing up a list of possible products that he could sell via the Internet, including CDs, software, and hardware. In the end, books were the obvious choice because of the wide range of titles in existence.

 

Initially, Jeff had named his company ‘Cadabra’ on July 5, 1994. Soon later, Bezos decided on Amazon.com after looking through the words that start with A in the dictionary. Bezos liked the resonance between one of the planet’s longest rivers and largest bookstore.

 

What was it that made the difference and today makes Amazon accepted globally as the best place to buy goods online? It was the focus on the customer and correct prediction of future shopping trends that helped Amazon take the distinct edge and get ahead of its competitors. The initial business plan of founder Jeff Bezos was itself different from the others. At the start of the 21st century, when many of the e-companies couldn’t survive, it was Amazon that was leading the market from being a startup just a few years back. It was accepted that Bezos’ unusual plan worked after all.

Amazon soon started selling everything from music CD’s, software, tools, toys, sporting goods, and even groceries. But Amazon’s biggest invention was Kindle e-book which it launched in November 2007.

 

With its easy usability and the availability of online editions increasing day by day, the customers shifted from hardcover to e-books comfortably. The Kindle sales contributed heavily to Amazon’s revenue.

But what made all the difference in Amazon’s growth to have profits of 61 billion dollars and 97,000 employees in 2012 is because of the customer experience they deliver. Jeff Bezos’ masterstroke was in cutting down on marketing expenses and invest it in keeping the customer happy. He cut down on advertising expenses and thus gave shipping free for the customers. Free shipping and the lowest prices on the planet made it a difficult option to ignore. Everyone was attracted to buy at Amazon. But the secret to the success of Amazon is how they maintained their relationship with the customer.

 

Jeff becomes the third richest person in the world…!

It was recently reported in July 2016 that Jeff ($65.3 billion) has surpassed Warren Buffett ($64.9 billion) to become the third wealthiest person in the world.

 

But how did that happen?

Well, Jeff owns close to 18% of Amazon. Now, with the drastic growth in business, their stock price too had risen by 50% since February. To add to that – after Amazon reported better-than-expected results of around $850 million in profit for the second quarter and their share price rose further in after-hours trading as well.

On the other end, Warren Buffett who also owns close to 18% of Berkshire, had made a donation of $2.86 billion of Berkshire stock to the Bill & Melinda Gates Foundation and four family charities. This affected their stock price greatly.

Furthermore – there has been a Wells Fargo bank’s fake account scandal, which has led the bank to be fined with a combined $190 million by the California and federal regulators as it was alleged of illegally opening millions of unauthorized accounts to meet their aggressive internal sales goals.

This further resulted in a 3% drop in company shares and Warren Buffett, who owns 2 million shares of Wells Fargo, lost $1.3 Billion. To worsen things more – Berkshire Hathaway also owned 10% of the bank.

The only two billionaires richer than Jeff Bezos remain Bill Gates ($78 billion) and founder of Zara – Amancio Ortega ($73.1 billion).

This is what led to Jeff’s rise, and Warren Buffett’s fall drop!

Amazon is the leader in innovation and is the first in making things simpler and attractive for their customers. They provide an option for creating a wish list and also suggest products we would be interested in based on the products and services we have bought. Today Amazon offers cloud-based storage and computing services and also streaming of movies and songs for a flat annual subscription. Amazon provides people with the option to sell their products using their platform. The way Amazon treats its customers has been at the heart of the unbelievable success it has experienced. 

 

Jeff Bezos Becomes the richest man in the World!

According to Forbes 2018 richest people list, Jeff Bezos is currently ranked as the richest man in the world.

Amazon truly has been a company that has understood the needs of the customer and showed how to do business in the best way possible!!!

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