Amazon: The History of Amazon's Creation and Success
“We are ahead of time, but that does not give us the privilege of delaying the launch.This is roughly what the founder of Amazon could have said to one of his employees in 1995. Although the company was officially registered in 1994, the start of sales on the Internet was somewhat delayed, and did not go very smoothly: customers could order minus one book, pages took a long time to load, often hung halfway, hyperlinks did not work.
But this did not upset the creator, the employees, or the users in the least.
An online store of this format in 1995 was, if not a breakthrough, then certainly something unusual. Let us recall that this happened at a time when the 32-bit Pentium microprocessor was considered a powerful "machine", and there were still 2 years left before the release of the first model of a phone in the "clamshell" form factor.
So, one of the world's largest marketplaces began its activity as a modest on page seo service online bookstore. It is worth noting that at that time Amazon was still called Cadabra, but later this name was abandoned, as it was too consonant with “cadaver” (from English - “dead body”).
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Garage affairs
It is often written that Jeffrey Bezos (the founder of Amazon) started his project in a garage. But either he is confused with Steve Jobs, or this is how successful startups are written, but there is no evidence of this.
The initial investment in the project was at least $300,000. We assume that with this amount in 1994, Bezos could easily rent a decent office. Other sources even claim that the initial capital exceeded $1 million and consisted of his father's personal savings, loans from friends and relatives, and investors' money.
Actually, Jeffrey himself was clearly not a penniless enthusiast at the time of the launch. A Princeton University graduate who later worked on Wall Street, he could have saved up the necessary capital. Moreover, before his dismissal, Bezos held the prestigious position of vice president of the company.
The deepest river in the world
After existing for a couple of months, the company Cadabra was renamed to sound like a South American river. This is how the creator of Amazon expressed his ambitions to build a truly large-scale corporation.
An important factor was that the first letter of the English alphabet was the first in the name. Browsers of that time often gave search results in alphabetical order.
Well, the presence of the last letter - "z" - completely predetermined the marketing campaign for many years to come. Amazon became a place where you can really find everything your heart desires.
1,000,000 in 2 years
By 1997, the number of Amazon users had already exceeded one million. That same year, the company went public and received a capitalization valuation of $66 million and began selling shares at $18 per share, which literally flew off the shelves like hot cakes.
Such rapid development and stunning success could not leave other market players indifferent. And yet in the same 1997, the first scandal occurred around Amazon: Barnes & Noble opposed Amazon calling itself "the world's largest bookstore." However, the case did not go to court, they parted ways on a settlement agreement, and this incident did not particularly affect the position of the future global marketplace. Unlike many other high-profile cases that accompanied the subsequent path of the company's development.
Labor disputes and tax evasion
What else can Amazon boast about? The history of the creation of such a corporation could not pass without accusations of low wages and inadequate working conditions. Every now and then, workers organize public rallies, drawing public attention to the fact that they are not given breaks in warehouse centers and are provided with insufficient safety conditions.
In 2012 and again in 2014, Amazon was accused of exploiting tax loopholes and receiving large subsidies from government agencies. This resulted in the company paying negligible taxes relative to its high profits.
Environmental activists, in turn, have repeatedly criticized the company for its use of non-recyclable packaging materials, excessive energy consumption of its data centers, and the environmental impact of its logistics infrastructure.
Amazon's Success and Its Root Causes
But despite the scandals, the company remains the leader in its industry. Largely due to its strategy of intensive growth and innovation. Amazon was one of the first to:
implemented personalized recommendation systems (based on past purchase data and user experience);
began research into the use of unmanned drones for delivery of goods;
developed automated warehouse management systems;
offered users a paid subscription (Prime), which includes fast and free delivery, a streaming service and other benefits;
developed a concept of stores without cashiers, where customers can take goods from the shelves and leave the store, and their purchases will be automatically paid for through a mobile application.
From this we conclude that it was the active investments in technology development, including the development of its own e-commerce system, logistics network and cloud services, that allowed Amazon to increase its market share and become one of the largest online trading platforms in the world.
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