The History Of Amazon: From Online Bookstore to Retail Giant

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Amazon isn’t a very old company, but it’s one that’s transformed the world as we know it.

From an online bookstore to a major global digital retailer and cloud infrastructure provider, here’s a quick look at the short and exciting history of Amazon.

Amazon started back in 1994, when Jeff Bezos, a former hedge fund executive, incorporated amazon.com. Bezos is said to have picked the name because it begins with the letter A and because of its association with the South American river. Based on his own initial research, Bezos determined that the most logical first step for an online retailer is to sell books. Amazon thus started off as an online bookstore. While Amazon certainly wasn’t the first online bookstore, it was the first to come with a promise to deliver to any reader anywhere.

While the website started off as a bookstore, Bezos contended from the very start that he was running a technology company in the business of simplifying online transactions for customers. While there were many skeptics, and some financial journalists looked down on the company, Amazon stayed strong until it finally made a profit in 2001. Bezos consistently ignored the doubters, stating that they were underestimating the growth potential of the internet. While many reporters pushed Bezos on his decisions, the businessman’s constant hard work, innovation, and obsession with customer satisfaction kept the business going strong.

The next major milestone came when Amazon launched Amazon Web Services (AWS) in 2002. AWS initially offered data on internet traffic, but caught the perfect wave of internet innovation. AWS quickly kicked off and is still used by Amazon’s competitor, Netflix.

The main goal which Bezos set out for Amazon was to not carry any inventory, but the company had to start holding inventory in warehouses in 1997. It was in 2000 that Amazon started the service that lets small companies sell through Amazon’s platform. By 2006, this developed into the Fulfillment by Amazon service. The growing use of warehouses and the fulfillment service led Amazon to purchase Kiva Systems, a robotics company, in 2012.

Amazon has primarily remained an online retailer, and still pulls in most of its revenues from that area. The company is currently pushing to update its offers even further, offering one-day free shipping for Prime members. AWS has been quietly changing the world as well, offering cloud solutions to large companies including automakers. Amazon will likely play a significant role throughout the foreseeable future.

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5 years ago
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