THE HISTORY OF AMAZON
Amazon was founded by Jeff Bezos from his garage in Bellevue, Washington, on July 5, 1994. Initially an online marketplace for books, it has expanded into a multitude of product categories, a strategy that has earned it the moniker The Everything Store.
Jeff Bezos
founded Amazon.com in 1994. Amazon's mission is to be Earth's most
customer-centric company.
Bezos then decided to go for a cross-country drive from New York to Seattle with his then-wife. On the way, he wrote the Amazon business plan and chose to set up the original company in his garage.
Amazon is an enormous, internet-based company headquartered in Seattle, Washington. The technology giant is among the Big Five companies in the United States, alongside Apple, Google, Microsoft, and Meta (Facebook).
Even though Amazon initially started as an online marketplace for books, the company has grown to be the most valuable and influential brand globally. Amazon now boasts a multitude of product categories, making it an everything store.
The Founding of Amazon: How it Happened
in his garage in Bellevue, Washington founded the famous Amazon.com on July 5, 1994. Before quitting employment, Jeff Bezos worked for several companies.
His first job was on Wall Street in the computer science field, which Bezos secured immediately after graduating from Princeton. He then proceeded to work for Fitel Company, his main goal being to build an international trade network for the company.
Later on, Jeff Bezos became the vice president of the Bankers Trust. Finally, he worked for D.E Shaw & Co. in the computer science field and did away with employment.
In 1994, Jeff Bezos decided to participate in the internet gold rush. Through the initiative, he came up with the idea of using the internet to sell books to a mass audience.
The initial name Bezos gave his company was Cadabra. But later on, Jeff overheard a lawyer mispronouncing the name as cadaver. At this point, Bezos chose to change the name of the company to Amazon.com.
Before settling for the name, Bezos took time to go through the dictionary. He chose to settle for a name that started with ‘A’ because it is at the top of the alphabet’s list. Besides, he named his company Amazon after the world’s largest river and retained the domain’s name as Amazon.com. He planned to make his bookstore the largest in the entire world.
The company was incorporated in the state of Washington, beginning service in July 1995. The initial Web site was text heavy and gray, it wasn’t pretty and didn’t even have listing book publication dates and other key information. But that didn’t concern Madrona Venture Group’s Tom Alberg, who invested $100000 in Amazon in 1995.
The company was incorporated in the state of Washington, beginning service in July 1995. The initial Web site was text heavy and gray, it wasn’t pretty and didn’t even have listing book publication dates and other key information. But that didn’t concern Madrona Venture Group’s Tom Alberg, who invested $100000 in Amazon in 1995.
Amazon Through The Decades (years)
Amazon has made steady strides over the years. Here is how the company has risen from 1995, a year after it was founded to date:
Phase One: 1995 – 1997
In July 1995, the Amazon Company began to offer services in Washington. Its first website was text-heavy and gray in appearance. It was not that pretty and even lacked book publication dates and other vital information.
But that didn’t stop Tom Alberg of Madrona Venture Group from investing in it. In the same year of 1995, the investor placed in Amazon an investment of $100000. The investment saw Amazon grow its sales significantly. After four months in business, the company was selling over 100 books in a day.
Even though Amazon started as an online bookstore, it gradually began including other products and services into its business model. That was through acquisition or development.
The year 1997 saw Amazon add movie videos and music CDs to its website. Many viewed this step as a bold move that would complement the company’s broad book collection. Also, in May 1997, amazon.com delivered its first public offering of stock.
And within a short while, Amazon included five more product categories to its cart. The products were toys, video games, electronics, software, and home improvements.
Phase Two: 1998 – 2000
In 1999, Time magazine recognized Amazon’s success in making online shopping popular. The magazine further named Jeff Bezos as the person of the year.
During the same year, Amazon made its first attempt to venture into the publishing business. The company purchased a defunct imprint and used it to publish some books. But within a short time, the imprint vanished.
From June 19, 2000, Amazon had its logotype feature a curved arrow that leads from A-Z. The curved arrow had a shape like a smile.
Trusted sources indicate that Amazon did not anticipate profits for 4-5 years. The slow growth saw stockholders complain; because they did not receive the profits, they wanted from their investments. That made many people doubt whether the company would survive in the end.
Phase Three: 2011 – 2015
In 2001, the dot-com bubble busted, destroying many e-companies. Luckily, Amazon survived the tech crash and moved forward, becoming a dominant player in online sales. And in the fourth quarter of 2001, the company made its first profits. The revenues were over $1 billion and proved that Bezos business model was indeed set to succeed.
All the subsequent years saw an increase in revenues, thanks to the international presence and product diversification. For instance, in 2002, the revenues were $3.9 billion, $5.3 billion in 2003, $6.9 billion in 2004, 2005 had $8.5 billion, and 2006 accumulated $10.7 billion.
By 2011, the Amazon Company had acquired 30,000 full-time employees in the United States. Besides, the amazon.com site had over 900 million visitors in the same year. The number of employees rose to 56, 000 in 2012.
In 2014, the technology giant unveiled the fire phone to the public. The purpose of the fire phone was to enable customers to have access to media streaming options. Unfortunately, the venture flopped, making Amazon lose over $170 million. Moreover, the fire phone production was brought to a standstill the succeeding year.
Phase Four: 2016 – 2021
When it came to June 2017, Amazon announced to the public their plans to acquire Whole Foods, a high-class supermarket chain with more than 400 stores. The online company was set to spend $13.4 billion on whole foods.
Media experts say the Whole Foods acquisition was a move to reinforce Amazon’s physical holdings and challenge the supremacy of Walmart. On August 23, 2017, the Federal Trade Commission and Whole Foods shareholders approved the business deal. Amazon further announced In September 2017 to position a second headquarters in a metropolitan area. The area of choice needed to have more than a million people.
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