|Traded as||NASDAQ: AMZN
S&P 500 Component
|Headquarters||Seattle, Washington, United States123|
|Key people||Jeff Bezos
(Chairman, President and CEO)
|Industry||Internet, online retailing|
|Products||Appstore, LoveFilm, The Book Depository, Game Studios, Instant Video, Instant Video UK, Instant Video German, Kindle, Lab126, Studios, Woot
|Revenue||US$ 74.45 billion (2013)6|
|Operating income||US$ 745 million (2013)6|
|Net income||US$ 274 million (2013)6|
|Total assets||US$ 40.159 billion (2013)6|
|Total equity||US$ 9.746 billion (2013)6|
|Employees||109,800 (September 2013)7|
|Subsidiaries||a2z, A9.com, Amazon Web Services, Alexa Internet, Audible.com, Digital Photography Review, Goodreads, Internet Movie Database, Junglee.com, Zappos|
|Website||amazon.com (original US site)
various national sites
|Written in||C++, Perl and Java|
|Alexa rank||10 (March 2014[update])8|
|Type of site||E-commerce|
|Advertising||Web banners, videos|
|Available in||English, French, German, Spanish, Italian, Japanese, Chinese, Brazilian Portuguese|
Amazon.com, Inc. // is an American international electronic commerce company with headquarters in Seattle, Washington, United States. It is the world's largest online retailer.91011 Amazon.com started as an online bookstore, but soon diversified, selling DVDs, VHSs, CDs, video and MP3 downloads/streaming, software, video games, electronics, apparel, furniture, food, toys, and jewelry. The company also produces consumer electronics—notably the Amazon Kindle e-book reader and the Kindle Fire tablet computer—and is a major provider of cloud computing services. Amazon is considered the fourth most successful startup company of all time by market capitalization, revenue, growth and cultural impact.12
Jeff Bezos incorporated the company (as Cadabra) in July 1994 and the site went online as Amazon.com in 1995.13 The company was renamed after the Amazon River, one of the largest rivers in the world,13 which in turn was named after the Amazons, the legendary nation of female warriors in Greek mythology.
Amazon has separate retail websites for United States, United Kingdom, France, Canada, Germany, Italy, Spain, Australia, Brazil, Japan, China, India and Mexico, with international shipping to certain other countries for some of its products.14 In 2011, it had professed an intention to launch its websites in Poland,15 Netherlands, and Sweden, as well.16 An Austrian website operates as part of the German website.
- 1 History
- 2 Merchant partnerships
- 3 Locations
- 4 Products and services
- 4.1 Retail goods
- 4.2 Consumer electronics
- 4.3 Digital content
- 4.4 Amazon Art
- 4.5 Amazon Instant Video
- 4.6 Amazon Prime
- 4.7 Private labels and exclusive marketing arrangements
- 4.8 Computing services
- 4.9 Content production
- 4.10 Donations
- 4.11 Amazon Local
- 4.12 AmazonWireless
- 4.13 AmazonFresh
- 4.14 Amazon Prime Air
- 4.15 Other services
- 5 Companies
- 6 Website
- 7 Amazon sales rank
- 8 Amazon technology
- 9 Multi-level sales strategy
- 10 Revenue
- 11 Controversies
- 12 Lobbying
- 13 Notable businesses founded by former employees
- 14 See also
- 15 References
- 16 Further reading
- 17 External links
The company was founded in 1994, spurred by what Bezos called his "regret minimization framework", which described his efforts to fend off any regrets for not participating sooner in the Internet business boom during that time.17 In 1994, Bezos left his employment as vice-president of D. E. Shaw & Co., a Wall Street firm, and moved to Seattle. He began to work on a business plan for what would eventually become Amazon.com.
After reading a report about the future of the Internet which projected annual Web commerce growth at 2,300%, Bezos created a list of 20 products which could be marketed online. He narrowed the list to what he felt were the five most promising products which included: compact discs, computer hardware, computer software, videos, and books. Bezos finally decided that his new business would sell books online, due to the large world-wide demand for literature, the low price points for books, along with the huge number of titles available in print.18 Amazon19 was originally founded in Bezos' garage in Bellevue, Washington.20
The company began as an online bookstore, an idea spurred off with discussion with John Ingram of Ingram Book (now called Ingram Content Group), along with Keyur Patel who still holds a stake in Amazon.21 In the first two months of business, Amazon sold to all 50 states and over 45 countries. Within two months, Amazon's sales were up to $20,000/week.22 While the largest brick and mortar bookstores and mail order catalogs might offer 200,000 titles, an online bookstore could "carry" several times more, since they had an almost unlimited virtual (not actual) warehouse: those of the actual product makers/suppliers.
Bezos wanted a name for his company that began with "A" so that it would appear early in alphabetic order. He began looking through the dictionary and settled on "Amazon" because it was a place that was "exotic and different" just as he planned for his store to be, and he believed it was the biggest river in the world, and he planned to make his store the biggest in the world.13 Bezos placed a premium on his head start in building a brand, telling a reporter, "There's nothing about our model that can't be copied over time. But you know, McDonald's got copied. And it still built a huge, multibillion-dollar company. A lot of it comes down to the brand name. Brand names are more important online than they are in the physical world."23
Since 2000, Amazon's logotype has featured a curved arrow leading from A to Z, representing that they carry every product from A to Z, with the arrow shaped like a smile.24
Amazon was incorporated in 1994, in the state of Washington. In July 1995, the company began service and sold its first book on Amazon.com: Douglas Hofstadter's Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought.25 In October 1995, the company announced itself to the public.26 In 1996, it was reincorporated in Delaware. Amazon issued its initial public offering of stock on May 15, 1997, trading under the NASDAQ stock exchange symbol AMZN, at a price of US$18.00 per share ($1.50 after three stock splits in the late 1990s).
Amazon's initial business plan was unusual; it did not expect to make a profit for four to five years. This "slow" growth caused stockholders to complain about the company not reaching profitability fast enough to justify investing in, or to even survive in the long-term. When the dot-com bubble burst at the start of the 21st Century, destroying many e-companies in the process, Amazon survived, and grew on past the bubble burst to become a huge player in online sales. It finally turned its first profit in the fourth quarter of 2001: $5 million (i.e., 1¢ per share), on revenues of more than $1 billion. This profit margin, though extremely modest, proved to skeptics that Bezos' unconventional business model could succeed.27 In 1999, Time magazine named Bezos the Person of the Year, recognizing the company's success in popularizing online shopping.
Barnes & Noble sued Amazon on May 12, 1997, alleging that Amazon's claim to be "the world's largest bookstore" was false. Barnes and Noble asserted, "[It] isn't a bookstore at all. It's a book broker." The suit was later settled out of court, and Amazon continued to make the same claim."28 Walmart sued Amazon on October 16, 1998, alleging that Amazon had stolen their trade secrets by hiring former Walmart executives. Although this suit was also settled out of court, it caused Amazon to implement internal restrictions and the re-assignment of the former Walmart executives.28
- 1998: PlanetAll, a reminder service based in Cambridge, Massachusetts; Junglee, an XML-based data mining startup based in Sunnyvale;303132 Bookpages.co.uk,3334 a UK online book retailer, which became Amazon UK on October 15, 1998;35 Telebook (www.telebuch.de) was Germany's leading online bookstore, it became Amazon's German online store;33 Internet Movie Database (IMDb).3336
- 1999: Alexa Internet a database company;37 Accept.com a financial services company;38 Drugstore.com 40% investment in 1999,39 increased stake in 2000,40 sold stake to Wallgreens in 2011 for a 90% loss;41 GeoWorks, a wireless communications company, acquisition of a minority interest;42 Pets.com, purchased a 54 percent stake;43 LiveBid.com, which produced Internet-based auction software;44 e-Niche Incorporated comprising Exchange.com, Bibliofind.com (hard-to-find book titles), and Musicfile.com (hard to find music titles);4546 HomeGrocer.com, a 35 percent stake in the online grocer;47 Gear.com, 49 percent stake48 (the company was purchased by Overstock.com in 2000); Tool Crib of the North, acquired the online and catalog sales division of the company in October 1999, selling a very wide variety of tools and home improvement items;49 Convergence Corporation, software to connect wireless devices to the Internet;50 MindCorps Incorporated, applications for web sites including online chats to web based databases;51 Della.com, gift registry, expert advice, and personalized gift suggestions, Amazon purchased a 20% stake52 (in April, 2000, the company merged with WeddingChannel.com53); Back to Basics Toys, catalog toy store54 (sold to Scholastic in 200355); Ashford.com, retailer of luxury products, Amazon acquired a 16.6 percent ownership;citation needed Leep Technology Inc., developer of on-line database query tools;citation needed
- 2003: Online music retailer CDNow.56 By 2011, the website cdnow.com was defunct and in use by a different company.
- 2004: Joyo.com, a Chinese e-commerce website.57
- 2005: BookSurge,58 a print on demand company, and Mobipocket.com, an e-Book software company.5960 CreateSpace.com (formerly CustomFlix), a distributor of on-demand DVDs, based in Scotts Valley, California.61 CreateSpace has since expanded to include print on-demand books (POD), CDs, and video.
- 2006: Shopbop, a retailer of designer clothing and accessories for women, based in Madison, Wisconsin.62
- 2007: dpreview.com, a digital photography review website based in London; Brilliance Audio, the largest independent publisher of audiobooks in the United States.63
- 2008: Audible.com; Fabric.com;64 Box Office Mojo;65 AbeBooks;66 Shelfari;67 (including a 40% stake in LibraryThing and whole ownership of BookFinder.com, Gojaba.com, and FillZ); Reflexive Entertainment,68 a casual video game development company.
- 2009: Zappos,69 an online shoe and apparel retailer70 Lexcycle,71 SnapTell, an image matching startup,72 Stanza, a rival e-book reader to Amazon's Kindle.73
- 2010: Touchco.,74 Woot,75 Quidsi, BuyVIP, Amie Street.
- 2010: Toby Press76
- 2011: LoveFilm,77 The Book Depository,78 Pushbutton79 Yap,80
- 2012: Kiva Systems,81 Teachstreet82 Evi8384
- 2013: IVONA Software,85 GoodReads86 Liquavista 87
- 2014: Double Helix Games88
- 2008: Engine Yard, a Ruby-on-Rails platform as a service (PaaS) company.89
- 2010: LivingSocial, a local deal site.90
- 2004: A9.com, a company focused on researching and building innovative technology.91
- 2004: Lab126, developers of integrated consumer electronics such as the Kindle.
- 2007: Endless.com, an e-commerce brand focusing on shoes.92
- 2007: Brilliance Audio, the largest independent audiobook producer in the US.93
Until June 30, 2006, typing ToysRUs.com into a browser would bring up Amazon.com's "Toys & Games" tab; however, this relationship was terminated due to a lawsuit.94 Amazon also hosted and managed the website for Borders bookstores but this ceased in 2008.95 From 2001 until August 2011, Amazon hosted the retail website for Target.96 Benefit Cosmetics, another merchant partner of Amazon, has also launched a major E-Commerce platform of their own based on Hybris and arvato systems NA, in the US, EU and China.97
Amazon.com operates retail websites for Sears Canada, bebe Stores, Marks & Spencer, Mothercare, and Lacoste. For a growing number of enterprise clients, currently including the UK merchants Marks & Spencer, Benefit Cosmetics' UK entity, edeals.com, and Mothercare, Amazon provides a unified multichannel platform where a customer can interact with some people they call the retail website, standalone in-store terminals, or phone-based customer service agents. Amazon Web Services also powers AOL's Shop@AOL.
On October 18, 2011, Amazon.com announced a partnership with DC Comics for the exclusive digital rights to many popular comics, including Superman, Batman, Green Lantern, The Sandman, and Watchmen. The partnership has caused well-known bookstores like Barnes & Noble to remove these titles from their shelves.98
In November 2013, Amazon.com announced a partnership with the United States Postal Service to begin delivering orders on Sundays. The service, included with Amazon’s standard shipping rates, initiated in metropolitan areas of Los Angeles and New York, with plans to expand into Dallas, Houston, New Orleans, and Phoenix by 2014.99
The company's global headquarters are in 14 buildings in Seattle's South Lake Union neighborhood. The European headquarters are in Luxembourg's capital, Luxembourg City. In Seattle, as of 2013, a 3-tower headquarters near Amazon's existing buildings with a capacity of 12,000 employees was under construction.101
While much of Amazon's software development occurs in Seattle, the company employs software developers in centers across the globe. Some of these sites are run by an Amazon subsidiary called A2Z Development.102
- North America
- South Africa: Cape Town
- United States: Kennewick, WA; Huntington, WV; Grand Forks, ND; Winchester, KY
- India: Hyderabad, Chennai, Bangalore
- South Africa: Cape Town108
- Philippines: Convergys Cebu, Convergys Bacolod
- China: Chengdu
- Germany: Berlin
- Ireland: Cork
- Morocco: Sala al Jadida
- UK: Edinburgh, Scotland
- Japan: Sapporo
- Costa Rica: Heredia and San Jose
- Uruguay: Montevideo
- Italy: Cagliari
- Jamaica: Kingston
Fulfillment centers are located in the following cities, often near airports. These centers also provide warehousing and order-fulfillment for third-party sellers:109
Warehouses are large and each has hundreds of employees. Employees are responsible for four basic tasks: unpacking and inspecting incoming goods; placing goods in storage and recording their location; picking goods from their computer recorded locations to make up an individual shipment; and shipping. A central computer which records the location of goods and maps out routes for pickers plays a central role; employees carry hand-held computers which communicate with the central computer and monitor their rate of progress. A picker with their cart may walk 10 or more miles a day. In the United Kingdom initial staffing was provided by Randstad Holding and other temporary employment agencies. Some workers are accepted as Amazon employees and granted pension and shares of stock; others are dismissed. "When we have permanent positions available, we look to the top performing temporary associates to fill them."110 Development of a high level of automation is anticipated in the future following Amazon's 2012 acquisition of Kiva Systems, a warehouse automation company.
- North America
- Goodyear, AZ
- Phoenix, AZ
- Patterson, CA
- San Bernardino, CA
- Tracy, CA (opening 2014)
- Windsor Locks, CT
- Middletown, DE111
- New Castle, DE
- Jeffersonville, IN
- Plainfield, IN
- Whitestown, IN
- Coffeyville, KS
- Campbellsville, KY
- Hebron, KY (near Cincinnati, OH)
- Lexington, KY
- Louisville, KY
- Baltimore, MD (opening Fall 2014)112
- Robbinsville, NJ (opening early 2014)113
- Fernley, NV
- North Las Vegas, NV
- Nashua, NH
- Breinigsville, PA
- Carlisle, PA
- Hazleton, PA
- Lewisberry, PA
- Lexington, SC114115
- Spartanburg, SC;
- Chattanooga, TN
- Lebanon, TN
- Murfreesboro, TN
- Irving, TX116 (between Dallas and Fort Worth)
- Schertz, TX (near San Antonio)
- Chester, VA
- Dinwiddie, VA (near Richmond, VA)
- Sterling, VA
- Bellevue, WA
- DuPont, WA (opening Fall 2013)
- Sumner, WA.117118
- Huntington, West Virginia
- United Kingdom, as of 2013, 7 in operation with 3 more planned.110
- Slovakia: Bratislava (2011)124
- Audible.com (subsidiary) Headquarters at 1 Washington Park in Newark, NJ.
- Zappos.com Headquarters in Las Vegas, Nevada.
- Woot Headquarters in Carrollton, Texas.
These US distribution centers have been closed: SDC Seattle Distribution Center, located in Georgetown, just south of downtown Seattle; Red Rock, Nevada; Chambersburg, Pennsylvania; Munster, Indiana; and McDonough, Georgia.125126127 From 2000128 until February 2001, there was an Amazon customer service based in The Hague, Netherlands.129130
Amazon product lines include media - books, DVDs, music CDs, software, videotapes, and software - apparel, baby products, consumer electronics, beauty products, gourmet food, groceries, health and personal-care items, industrial & scientific supplies, kitchen items, jewelry and watches, lawn and garden items, musical instruments, sporting goods, tools, and toys & games.
The company launched amazon.com Auctions, a web auctions service, in March 1999. However, it failed to chip away at the large market share of the industry pioneer, eBay. Later, the company launched a fixed-price marketplace business, zShops, in September 1999, and the now defunct partnership with Sotheby's, called Sothebys.amazon.com, in November. Auctions and zShops evolved into Amazon Marketplace, a service launched in November 2000 that let customers sell used books, CDs, DVDs, and other products alongside new items. Today, Amazon Marketplace's main rival is eBay's Half.com service.citation needed
In August 2007, Amazon announced AmazonFresh, a grocery service offering perishable and nonperishable foods. Customers can have orders delivered to their homes at dawn or during a specified daytime window. Delivery was initially restricted to residents of Mercer Island, Washington, and was later expanded to several ZIP codes in Seattle proper.131 AmazonFresh also operated pick-up locations in the suburbs of Bellevue and Kirkland from summer 2007 through early 2008.
In 2012, Amazon announced the launch of Vine.com for buying green products, including groceries, household items, and apparel.132 It is part of Quidsi, the company that Amazon bought in 2010 that also runs the sites Diapers.com (baby), Wag.com (pets), and YoYo.com (toys).132 Amazon also owns other e-commerce sites like Shopbop.com, Woot.com, and Zappos.com.132
Amazon's Subscribe & Save program offers a discounted price on an item (usually sold in bulk), free shipping on every Subscribe & Save shipment, and automatic shipment of the item every one, two, three, or six months.133
In 2013, Amazon launched its site in India, amazon.in. It has started with electronic goods and plans to expand into fashion apparel, beauty, home essentials, and healthcare categories by the end of 2013.citation needed
In November 2007, Amazon launched Amazon Kindle, an e-book reader which downloads content over "Whispernet", via Sprint's EV-DO wireless network. The screen uses E Ink technology to reduce battery consumption and to provide a more legible display. As of March 2011, the stated library numbers over 850,000 titles.citation needed
In September 2011, Amazon announced its entry into the tablet computer market by introducing the Kindle Fire, which runs a customized version of the operating system Android. The exceedingly low pricing of Fire ($199 USDwhen?citation needed) was widely perceived as a strategy backed by Amazon's revenue from its content sales, to be stimulated by sales of the Fire.
In September 2012, Amazon unveiled the second generation tablet, called the Kindle Fire HD. On September 25, 2013, Amazon.com unveiled its third generation tablet, called Kindle Fire HDX.134 In October 2013, the sixth generation Kindle was released.
Amazon's Honor System was launched in 2001 to allow customers to make donations or buy digital content, with Amazon collecting a percentage of the payment plus a fee; however, the service was discontinued in 2008135 and replaced by Amazon Payments.
In January 2008, Amazon began distributing its MP3 service to subsidiary websites worldwide143 and, in December 2008, Amazon MP3 was made available in the UK. At the launch of Amazon MP3 in the UK, over 3 million Digital Rights Management (DRM)-free songs were made available to consumers, with prices that started at 59p, compared to Apple's 79p starting price.144
In July 2010, Amazon announced that e-book sales for its Kindle reader outnumbered sales of hardcover books for the first time ever during the second quarter of 2010. Amazon claims that, during that period, 143 e-books were sold for every 100 hardcover books, including hardcovers for which there is no digital edition; and during late June and early July, sales rose to 180 digital books for every 100 hardcovers.145
On March 22, 2011, Amazon launched the Amazon Appstore for Android devices and the service was made available in over 200 countries.146 Also in 2011, Amazon announced that it was releasing a Mac download store to offer dozens of games and hundreds of pieces of software for Apple computers.147
In January 2013, Amazon launched AutoRip, a digital music service. The service allows customers to receive a free MP3 copy of select CDs purchased through Amazon.148 Amazon announced in September 2013 that they would launch Kindle MatchBook in October 2013, a similar service for books allowing customers who buy books from Amazon to acquire an e-book copy for free, or at a discounted price of US$3 or less.149 MatchBook was launched on the company's site on October 29, 2013.150151
In August 2012, Amazon announced it would be adding a gaming department to its company titled Amazon Game Studios. Amazon stated that they will introduce "innovative, fun and well-crafted games" to consumers.152 According to the Amazon Game Studios website, the last game that was launched by the department was Amazon's first ever mobile game Air Patriots, released on November 1, 2012.153
On February 6, 2014, Amazon confirmed the acquisition of the gaming company Double Helix Games without any indication of the financial terms. The 75 Double Helix employees will become Amazon employees and their Orange County, California headquarters remain their operating base. Amazon informed the TechCrunch media company that it "acquired Double Helix as part of our [Amazon's] ongoing commitment to build innovative games for customers" and confirmed that Double Helix's current game roster and other future developments will receive support following the acquisition.154
In August 2013 Amazon launched Amazon Art as an online marketplace selling original and limited edition fine art from selected galleries.155 The initial 40000 items listed for sale included Norman Rockwell's painting “Willie Gillis: Package from Home” priced at $4.85 million, "L'Enfant a la tasse" by Claude Monet for $1.45 million and Andy Warhol's "Sachiko" for $45 000.156
Amazon Prime is a service of free two-day shipping on all eligible purchases, for a flat annual fee, as well as discounted one-day shipping rates.157 Amazon launched the program in the contiguous United States in 2005, in Japan, the United Kingdom and Germany in 2007, in France (as "Amazon Premium") in 2008, in Italy in 2011 and in Canada in 2013.
Amazon Prime membership in the United States, United Kingdom and Germany also provides Amazon Instant Video, the instant streaming of selected movies and TV shows at no additional cost.158 In November 2011, it was announced that Prime members have access to the Kindle Owners’ Lending Library, which allows users to borrow certain popular titles for free reading on Kindle hardware, up to one book a month, with no due date.159
In August 2005,160 Amazon began selling products under its own private label, "Pinzon"; the trademark applications indicated that the label would be used for textiles, kitchen utensils, and other household goods.160 In March 2007, the company applied to expand the trademark to cover a more diverse list of goods and to register a new design consisting of the "word PINZON in stylized letters with a notched letter "O" which appears at the "one o'clock" position".161 Coverage by the trademark grew to include items such as paints, carpets, wallpaper, hair accessories, clothing, footwear, headgear, cleaning products, and jewelry.161 In September 2008, Amazon filed to have the name registered. USPTO has finished its review of the application, but Amazon has yet to receive an official registration for the name.
AmazonBasics is a private-label consumer electronics product line. It sells AV cables, blank DVD media and other electronics products under the AmazonBasics product label.162 The line was launched in 2009.163
An Amazon.com exclusive is a product, usually a DVD, that is available exclusively on Amazon.com. Some DVDs are produced by the owner of the film/product, while others are produced by Amazon.com itself. The DVDs produced by Amazon are made using their "CreateSpace" program, in which DVDs are created, upon ordering, using DVD-R technology. The DVDs are then shipped about two days later. Some DVDs (such as the Jersey Shore Season 1 or The Unusuals Season 1) first release their DVD on Amazon as an Amazon.com Exclusive for a limited time before being released elsewhere. On May 23, 2011, Amazon.com allowed customers to download Lady Gaga's Born This Way album for $0.99, resulting in some downloads being delayed, due to an extremely high volume of downloads.164
Amazon self publishing services through one of its companies, CreateSpace, a member of the Amazon group of companies.165
Amazon launched Amazon Web Services (AWS) in 2002, which provides programmatic access to latent features on its website. Amazon Web Services (AWS) was first launched as a public beta of Amazon Elastic Compute Cloud running Microsoft Windows Server and Microsoft SQL Server.166 This was later expanded to several operating systems, including various flavors of Linux and OpenSolaris.
In March 2006, Amazon launched an online storage service called Amazon Simple Storage Service (Amazon S3). An unlimited number of data objects, from 1 byte to 5 terabytes in size, can be stored in S3 and distributed via HTTP or BitTorrent. The service charges monthly fees for data stored and transferred. In 2006, Amazon introduced Amazon Simple Queue Service (Amazon SQS), a distributed queue messaging service, and product wikis (later folded into Amapedia) and discussion forums for certain products using guidelines that follow standard message board conventions. Also in 2006, Amazon introduced Amazon Elastic Compute Cloud (Amazon EC2), a virtual site farm, allowing users to use the Amazon infrastructure to run applications ranging from running simulations to web hosting. In 2008, Amazon improved the service by adding Elastic Block Store (EBS), offering persistent storage for Amazon EC2 instances and Elastic IP addresses, and offering static IP addresses designed for dynamic cloud computing. Amazon introduced SimpleDB, a database system, allowing users of its other infrastructure to utilize a high-reliability, high-performance database system.
Amazon continues to refine and add services to AWS, adding such services as Scalable DNS service (Amazon Route 53), payment handling, and AWS specific APIs for their Mechanical Turk service.
In November 2012 at AWS' web developer conference in Las Vegas it announced it was targeting large companies as cloud storage clients. It will further cut its S3 prices to customers with long-term contracts in its "Redshift" storage service launching in 2013.
In March 2013 Amazon announced its Mobile Ads API for developers. The new Ads API can be used on apps distributed on any Android platform as long as the app is also available on Amazon’s Appstore.168
Amazon Publishing is Amazon's publishing unit.169 It is composed of AmazonEncore,170 AmazonCrossing,171 Montlake Romance,172 Thomas & Mercer,173 47 North,174 and Powered by Amazon. Additional imprints are planned.
Launched in 2005, Amazon Shorts offered exclusive short stories and non-fiction pieces from best-selling authors for immediate download. By June 2007, the program had over 1,700 pieces and was adding about 50 new pieces per week. The program was discontinued on June 1, 2010.175176
Amazon also created "channels" to benefit certain causes. In 2004, Amazon allowed customers to donate $5 to $200 to the campaigns of 2004 US presidential hopefuls, providing links that raised $300,000 for the candidates.178 Amazon has periodically reactivated a Red Cross donation channel after crises such as Hurricane Sandy, Hurricane Katrina, and the 2004 earthquake and tsunami in the Indian Ocean. By January 2005, nearly 200,000 people had donated over $15.7 million in the US.179
Amazon Local is a daily deal service launched in June 2011 in Boise, Idaho.180 As of 2013, Amazon Local offers daily deals to over 100 regions in 36 U.S. states. Amazon Local also acts as a deal aggregator; some of the deals are actually offered through LivingSocial, a firm in which Amazon has heavily invested.181
60 Minutes announced on December 1, 2013 that Amazon Prime Air is a possible future delivery service expected to be many more years in development. In concept, the process would use drones to deliver small packages (less than five pounds) within 30 minutes by flying short distances (10–20 km) from local Amazon Fulfillment Centers.184185 The project will require the FAA (Federal Aviation Administration) to approve commercial use of unmanned drones.186 Although such approval could be in place as early as 2015, the project is still expected to be a few years off.187
Also in 2007, Amazon launched Amazon Vine, which allows reviewers free access to pre-release products from vendors in return for posting a review, as well as a payment service specifically targeted at developers, Amazon FPS.citation needed
IMDb and Amazon launched a website called SoundUnwound for browsing music metadata with wiki-like user contribution in September 2007; this data was also used for Amazon's Artist Pages.188 Soundunwound ceased existence on June 18, 2012, and the site redirected to Amazon.
Amazon Connect enables authors to post remarks on their book pages to customers.
Amazon Webstore allows businesses to create custom e-commerce websites using Amazon technology. Sellers pay a commission of 1-2%, plus credit-card processing fees and fraud protection, and a subscription fee which ranges from $0 to $39.99 per month depending on the bundle option for an unlimited number of listings.189 Amazon has chosen very few companies to become their implementation solution provider, and they are 4C Media, Absolute Webstores, atmosol, eCatalog, Explore Consulting, GoWebBaby, Kaushalam, KLoc Technologies, Luxor Design, SynapseIndia, and V Group. These companies ecourages traders to have their own webstore with easy guidance and solutions.190
Companies owned by Amazon that operate under their own brand.
Brilliance Audio is an audiobook publisher founded in 1984 by Michael Snodgrass in Grand Haven, Michigan.191 The company produced its first 8 audio titles in 1985.191 The company was purchased by Amazon in 2007 for an undisclosed amount.63192 At the time of the acquisition Brilliance was producing 12-15 new titles a month.192 It operates as an independent company within Amazon.
In 1984, Brilliance Audio invented a technique for recording twice as much on the same cassette.193 The technique involved recording on each of the two channels of each stereo track.193 It has been credited with revolutionizing the burgeoning audiobook market in the mid-1980s since it made unabridged books affordable.193
The domain amazon.com attracted at least 615 million visitors annually by 2008, twice the number of Walmart.194 Amazon attracts approximately 65 million customers to its US website per month.195 The company has also invested heavily on a massive amount of server capacity for its website, especially to handle the excessive traffic during the December Christmas holiday season.196 In addition to amazon.com, there are different versions of Amazon for several different countries, each varying in assortment and prices. As of December 2013, in alphabetical order by region, these are:
- Asia: amazon.cn or z.cn (China), amazon.in (India), amazon.co.jp (Japan).
- Europe: amazon.de (Germany), amazon.es (Spain), amazon.fr (France), amazon.it (Italy), amazon.co.uk (UK).
- North America: amazon.ca (Canada), amazon.com.mx (Mexico).
- Oceania: amazon.com.au (Australia).
- South America: amazon.com.br (Brazil).
Amazon allows users to submit reviews to the web page of each product. Reviewers must rate the product on a rating scale from one to five stars. Amazon provides a badging option for reviewers which indicate the real name of the reviewer (based on confirmation of a credit card account) or which indicate that the reviewer is one of the top reviewers by popularity. Customers may comment or vote on the reviews, indicating whether or not they found it helpful to them. If a review is given enough "helpful" hits, it appears on the front page of the product. In 2010, Amazon was reported as being the largest single source of Internet consumer reviews.197
When publishers asked Bezos why Amazon would publish negative reviews, he defended the practice by claiming that amazon.com was "taking a different approach...we want to make every book available – the good, the bad, and the ugly...to let truth loose".198
Although reviews are attributed to the credit-card name of the reviewer, there have been cases of positive reviews being written and posted by a public relations company on behalf of its clients,199 and writers employing pseudonyms to leave negative reviews of their rivals' work.200
Following listing for sale of Untouchable: The Strange Life and Tragic Death of Michael Jackson a disparaging biography of Michael Jackson by Randall Sullivan his fans, organized via social media as "Michael Jackson’s Rapid Response Team to Media Attacks" bombarded Amazon with negative reviews and negative ratings of positive reviews.201
"Search Inside the Book" is a feature which allows customers to search for keywords in the full text of many books in the catalog.202203 The feature started with 120,000 titles (or 33 million pages of text) on October 23, 2003.204 There are currently about 300,000 books in the program. Amazon has cooperated with around 130 publishers to allow users to perform these searches.
To avoid copyright violations, amazon.com does not return the computer-readable text of the book. Instead, it returns a picture of the matching page, instructs the web browser to disable printing, and puts limits on the number of pages in a book a single user can access. Additionally, customers can purchase online access to some of the same books via the "Amazon Upgrade" program.
Amazon derives about 40% of its sales from affiliate marketing called "Amazon Associates" and third-party sellers who sell products on Amazon.205 Associates receive a commission for referring customers to Amazon by placing links on their websites to Amazon, if the referral results in a sale. Worldwide, Amazon has "over 900,000 members" in its affiliate programs.206 Amazon reported over 1.3 million sellers sold products through Amazon's websites in 2007. Unlike eBay, Amazon sellers do not have to maintain separate payment accounts; all payments are handled by Amazon.
Associates can access the Amazon catalog directly on their websites by using the Amazon Web Services (AWS) XML service. A new affiliate product, aStore, allows Associates to embed a subset of Amazon products within another website, or linked to another website. In June 2010, Amazon Seller Product Suggestions was launched (rumored to be internally called "Project Genesis") to provide more transparency to sellers by recommending specific products to third-party sellers to sell on Amazon. Products suggested are based on customers' browsing history.207
A January 2010 survey of third-party sellers by Auctionbytes.com208 found that Amazon was 4th overall.209 Amazon.com placed second in "Profitability". Its lowest rating, but still above average, was in "Ease of Use". Sellers felt it had clearly defined rules, provided a steady stream of traffic to their listings, and put less emphasis on a community component. Amazon came in second in the Recommended Selling Venue category.
The Amazon sales rank (ASR) provides an indication of the popularity of a product sold on any Amazon locale. It is a relative indicator of popularity that is updated hourly. Effectively, it is a "best sellers list" for the millions of products stocked by Amazon.210 While the ASR has no direct effect on the sales of a product, it is used by Amazon to determine which products to include in their best sellers lists.210 Products that appear in these lists enjoy additional exposure on the Amazon website, and this may lead to an increase in sales. In particular, products that experience large jumps (up or down) in their sales ranks may be included within Amazon's lists of "movers and shakers," and this also provides additional exposure that may lead to an increase in sales.211 For competitive reasons, Amazon does not release actual sales figures to the public. However, Amazon has now begun to release point of sale data via the Nielsen BookScan service to verified authors.212 While the ASR has been the source of much speculation by publishers, manufacturers and marketers, Amazon itself does not release the details of its sales rank calculation algorithm. In addition, it states:
Please keep in mind that our sales rank figures are simply meant to be a guide of general interest for the customer and not definitive sales information for publishers - we assume you have this information regularly from your distribution sources—Amazon.com Help, 213
Customer Relationship Management (CRM) and Information Management (IM) support Amazon’s business strategy. The core technology that keeps Amazon running is Linux-based. As of 2005, Amazon had the world’s three largest Linux databases, with capacities of 7.8 TB, 18.5 TB, and 24.7 TB. The central data warehouse of Amazon is made of 28 Hewlett Packard servers with four CPUs per node running Oracle database software. Amazon’s technology architecture handles millions of back-end operations every day, as well as queries from more than half a million third-party sellers. With hundreds of thousands of people sending their credit card numbers to Amazon’s servers everyday, security becomes a major concern. Amazon employs Netscape Secure Commerce Server using the Secure Socket Layer protocol which stores all credit card details in a separate database. The company also records data on customer buyer behavior which enables them to offer or recommend to an individual specific item, or bundles of items based upon preferences demonstrated through purchases or items visited.214
On January 31, 2013 Amazon experienced an outage that lasted approximately 49 minutes, leaving its site inaccessible to some customers.215
Amazon employs a multi-level e-commerce strategy. Amazon started off by focusing on Business-to-Consumer relationships between itself and its customers, and Business-to-Business relationships between itself and its suppliers but it then moved to incorporate Customer-to-Business transactions as it realized the value of customer reviews as part of the product descriptions. It now also facilitates customer to customer with the provision of the Amazon marketplace which act as an intermediary to facilitate consumer to consumer transactions. The company lets almost anyone sell almost anything using its platform. In addition to affiliate program that lets anybody post Amazon links and earn a commission on click through sales, there is now a program which let those affiliates build entire websites based on Amazon’s platform.216
Some other large e-commerce sellers use Amazon to sell their products in addition to selling them through their own websites. The sales are processed through Amazon.com and end up at individual sellers for processing and order fulfillment and Amazon leases space for these retailers. Small sellers of used and new goods go to Amazon Marketplace to offer goods at a fixed price.217 Amazon also employs the use of drop shippers or meta sellers. These are members or entities that advertise goods on Amazon who order these goods direct from other competing websites but usually from other Amazon members. These meta sellers may have millions of products listed, have large transaction numbers and are grouped alongside other less prolific members giving them credibility as just someone who has been in business for a long time. Markup is anywhere from 50% to 100% and sometimes more, these sellers maintain that items are in stock when the opposite is true. As Amazon increases their dominance in the marketplace these drop shippers have become more and more commonplace in recent years. The resulting damage to a supply and demand marketplace remains to be seen but advertising contracts with large search engines eliminating smaller websites from overall exposure these practices should have a negative effect on the industry on the whole.
Over the last decade,when? Amazon has developed a customer base of around 30 million people. Amazon.com is primarily a retail site with a sales revenue model. Amazon makes its money by taking a small percentage of the sale price of each item that is sold through its website. Amazon also allows companies to advertise their products by paying to be listed as featured products.218
Since its founding, the company has attracted criticism and controversy from multiple sources over its actions. These include: luring customers away from the site's brick and mortar competitors,219 poor warehouse conditions for workers; anti-unionization efforts; Amazon Kindle remote content removal; taking public subsidies; its "1-Click patent" claims; anti-competitive actions; price discrimination; various decisions over whether to censor or publish content such as the WikiLeaks website; LGBT book sales rank;,220221 and works containing libel, facilitating dogfight, cockfight, or pedophile activities. In December 2011, Amazon faced backlash from small businesses for running a one-day deal to promote its new Price Check app. Shoppers who used the app to check prices in a brick-and-mortar store were offered a 5% discount to purchase the same item from Amazon.222 Companies like Groupon, eBay, and Taap.it countered Amazon's promotion by offering $10 off from their products.223224
Amazon has attracted widespread criticism by both current and former employees,225226 as well as the media and politicians for poor working conditions. In fall 2011 it was publicized that at the Breinigsville, Pennsylvania warehouse, workers had to carry out work in 100 °F (38 °C) heat, resulting in employees becoming extremely uncomfortable and suffering from dehydration and collapse. Loading-bay doors were not opened to allow in fresh air as "managers were worried about theft". Amazon's initial response was to pay for an ambulance to sit outside on call to cart away overheated employees.
Some workers, "pickers", who travel the building with a trolley and a handheld scanner "picking" customer orders can walk up to 15 miles a day back and forward, and if they fall behind on their targets, they can be reprimanded. The handheld scanners feed back to the employee real time information on how fast or slowly they are going, and also serve to allow Team Leads and Area Managers to track the specific locations of employees and how much "idle time" they gain when not working.227228
In a German television report broadcast in February 2013, journalists Diana Löbl and Peter Onneken conducted a covert investigation at the distribution center of Amazon in the town of Bad Hersfeld in the German state of Hesse. The report highlights the behavior of some of the security guards who apparently either had a Neo-nazi background or deliberately dressed in Neo-Nazi apparel, and who were intimidating foreign and temporary female workers at its distribution centres.229230231232233
Amazon.com lobbies the United States federal government and state governments on issues such as the enforcement of sales taxes on online sales, transportation safety, privacy and data protection, and intellectual property. According to regulatory filings, Amazon.com focuses its lobbying on the US Congress, the Federal Communications Commission, and the Federal Reserve. Amazon.com spent $500,000 on lobbying in the second quarter of 2010, $630,000 in the first quarter of 2011, and $450,000 in the second quarter of that year.234
The initiative Choice in eCommerce was founded on May 8, 2013 by several online retailers in Berlin, Germany.236237238239240241242243244 The cause was, in the view of the initiative, sales bans and online restrictions by individual manufacturers. The dealers felt cut off from their main sales channel and thus deprived them the opportunity to use online platforms like Amazon, eBay or Rakuten in a competitive market for the benefit of their customers.
A number of companies have been started and founded by former Amazon employees.245
- Findory was founded by Greg Linden
- Flipkart was founded by Sachin Bansal and Binny Bansal246
- Foodista was founded by Barnaby Dorfman
- Hulu was led by Jason Kilar, a former SVP
- Infibeam was founded by Vishal Mehta
- Jambool/SocialGold was co-founded by Vikas Gupta and Reza Hussein
- Nimbula was co-founded by Chris Pinkham, a former VP, and Willem Van Biljon, a former Product Manager
- Opscode was co-founded by Jesse Robbins, a former engineer and manager
- Pelago was co-founded by Jeff Holden, a former SVP, and Darren Vengroff, a former Principal Engineer
- Quora was co-founded by engineer Charlie Cheever
- TeachStreet was founded by Dave Schappell, an early product manager
- The Book Depository was founded by Andrew Crawford; acquired by Amazon in 2011.
- Trusera was founded by Keith Schorsch, an early Amazonian
- Twilio was founded by Jeff Lawson, a former Technical Product Manager
- Vittana was founded by Kushal Chakrabarti and Brett Witt
- Wikinvest was founded by Michael Sha
- Yellowleg.com was founded by Aashish Gupta
- Zeitgeist Research was founded by Manfred Bluemel, former head of market research worldwide 247
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|Wikimedia Commons has media related to Amazon.com.|
- Official website
- "Inside An Amazon Warehouse". IB Times.
- Amazon.com companies grouped at OpenCorporates
- "Amazon's human robots: They trek 15 miles a day around a warehouse, their every move dictated by computers checking their work. Is this the future of the British workplace?". The Daily Mail (Rugeley). February 28, 2013.
- Business data
- Amazon.com, Inc. at Google Finance
- Amazon.com, Inc. at Yahoo! Finance
- Amazon.com, Inc. at Reuters
- Amazon.com, Inc. SEC filings at the Securities and Exchange Commission
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