Amazon.com also called Amazon, is an American electronic commerce and cloud computing company that was founded on July 5, 1994, by Jeff Bezos and is based in Seattle, Washington. It is the largest Internet-based retailer in the world by total sales and market capitalization. Amazon.com started as an online bookstore, later diversifying to sell DVDs, Blu-rays, CDs, video downloads/streaming, MP3 downloads/streaming, audiobook downloads/streaming, software, video games, electronics, apparel, furniture, food, toys, and jewelry. The company also produces consumer electronics.
Amazon was started by the name Cadabra in 1994 by Jeff Bezos. It went online as amazon.com in 1995. What started out as an online bookstore today has turned out to become the largest online retailer on the planet. The company’s name Amazon has truly become as big as the amazon river from which it took inspiration.
Focusing on Customer needs
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 start up just a few years back. It was accepted that Bezos’ unusual plan worked after all.
Beginning Hardware and Home appliances
Amazon soon started selling everything from music CD’s, software, tools, toys, sporting goods and 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.
Jeff Bezos’ 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.
A customer’s surprise reaction
This is a story of a man who wanted to give his son a PS3 as a surprise gift. After 4 days of not receiving it, he called the customer representative and explained to him the whole story. And the representative assured him of delivery the very next day. When the man asked how much should he pay, the representative replied, “Nothing”. And this man went on to write an article in the New York Times which was read by millions of potential customers.
Making Things Simple
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.
Allowing customers to Sell
Amazon provides people 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. 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.