At some point in our lives, we have all wanted something that was impossible to find or something that is cheaper than what it’s actually worth. But with research we found that item on this specific website. One of most successful e-commerce companies that I will be focusing on is the one and only Amazon. You could literally find everything and anything on Amazon. Based in Seattle, Washington, Amazon was found by Jeffrey P. Bezos in 1994. Since it was initially launched, Amazon became and still is the world’s largest online retailer. Amazon sells a variety of many things. From electronics to furniture to clothes and pet supplies. Fun fact, Amazon was first called “ Cadabra Inc.” but it was changed a few months later after a lawyer mistakenly called it “ Cadaver”. Bezons finally named it Amazon because it’s easy to pronounce and spell. Also it’s named after the amazon river. Which is pretty cool when you think about it.
Jeffrey Bezos not only is the founder but he’s also known as the CEO and chairman of Amazon. The other people who help run this successful company is Andy Jassy the CEO of Amazon Web Services. And Brian Olsavsky the senior vice president and chief financial officer. His role is to manage all of the Amazon’s financial operations. Operations such as the internal financial analysis, investor relations, taxes and internal audits. Jeffrey Blackburn is Amazon’s senior vice president of business development. Lastly we have David Zopolsky, who is Amazon’s senior vice president of general counsel and secretary.
When Amazon was launched, it wasn’t as successful. Just like any other company, there were rocky bottoms and high mountains. In the beginning, Amazon was focused mainly on books, and was aimed to be the world’s largest book store. At age 30 Jeff Bezos noticed the uprising of the internet, and decided to quit his job and start selling the books from his garage. According to fundable “ within 30 days, it is doing $20,000 per week in sales”. It was hard to expand their branch because of lack of workers and and space. Early on facilities will shut down because of workers ignoring products that were supposed to be handled, system outrages and new products were not prepared correctly. Basically the workers weren’t able to handle everything and technology wasn’t as advanced during that time so they suffered many technical difficulties. Gladly now, Amazon has almost 600,000 employes.
According to business insider, another major problem Amazon faced was many “book distributors required retailers to order 10 books at once”. But Amazon didn’t make that much money in sales to do that. Eventually Bezos found a loophole to get what they wanted. Since they only had to order the book and not receive it, Bezos found books about lichens that were sold out. They would order one book that they needed and 9 books that were out of stock. Bezos states, “They would ship out the book we needed and a note that said, ‘Sorry, but we’re out of the lichen book.’ ”
Amazon is advertised by applying the products they sell to everyone. The Amazon website has a membership option for customers to order things and receive many benefits from it. Also they offer many other services like Amazon prime that comes with Amazon ebooks, Amazon music and Amazon movies. They were smart to create those things because it attracted new audience. It made people feel like they were joining a club that was beneficial to not just the company but to them too. As time went by, no one wanted to order a book and wait to receive it. Especially since technology was improving, many people didn’t necessarily want to read a physical book. Therefore Amazon e-book was created and boosted sales. Amazon e-book is a book that one could read anywhere: phone, tablet, and/or computer. To add on, the services Amazon offers requires customers to pay a monthly or yearly fee. Amazon also created many other products that isn’t just sold on the Amazon website, but is also sold at other retailers. Retailers such as Best Buy, Target, Walmart, Staples, and many more.
If you look around your house, most things you have could be bought on amazon. Therefore the main targets of Amazon’s products is any average person. Someone who leaves under a roof and has any amount of money. But mainly teenagers with spending money.
According to a Moneywatch article by Aimee Picchi “ Amazon (AMZN) is targeting a demographic that doesn’t have to struggle with a mortgage or household bills, and are among the most digitally savvy consumers: America’s teenagers.” As a teenager I have shopped on amazon mostly because I had a money for it and I wanted/needed that item. They have chosen generation Z because it is “the demographic group that’s on track to surpass the millennials in size and, someday, spending power.” This generation is the media’s largest audience. And it is easy for them to access the website since most teenagers have phones. Amazon sees it as teenagers step into the real life. Meaning that the older they get, the more they get the urge to shop on their own.
Amazon is publically traded on one of the major American stock exchanges, NASDAQ stock exchange. Amazon first began with one share being 18 dollars. As of right now, to purchase one share, it would cost $1,665.53. Over the past year, the highest to purchase one share was two thousand. And the lowest to purchase one share in January was one thousand. Based on the graph of the amount of money to purchase one share, in the past year from January to November, shares doubled the size. And based on the max graph, the shares will continue to double as time goes by.
Based on my research on Amazon, this company will continue in a positive way.
All the information that I gathered together proves that this company knows whose attention they need to grab. And products they need to produce to keep customers interested. Also they go by the policy of giving and getting, for example they offer a paid subscription service that comes things to keep customers satisfied. Going back to the audiences, Amazon’s main target is the generation Z. This shows that they focus on pleasing people, keep track of what is popular and produce what people want.