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02 Dec 2015

Amazon – 20 Years On, 24 Things You Didn’t Know

amazon

Amazon celebrated its 20th birthday in 2015. From humble beginnings to the company’s quirky inner workings, we reveal some interesting facts about the global retail giant.

Humble_Beg

1. Humble beginnings

Amazon began in the garage of founder Jeff Bezos’ home in Washington State. The site was launched on July 16 1995.

 

mynameis

2. It’s all in the name

Amazon was originally named Cadabra, as in ‘Abracadabra’, but it was scrapped after several people misheard it as ‘cadaver’. In the end Bezos chose Amazon.com to suggest scale (Amazon.com launched with the tagline ‘Earth’s biggest book store’) and because website listings at the time were alphabetical.

 

books_store

3. Book Store

Originally, the website only sold books. But because of a lack of space, Amazon had no inventory. When an order came in, they would find the book online, ship it to the Amazon office and then repackage it before sending on to the customer.

 

first_sale

4. First sale

The first book Amazon.com ever sold was Fluid Concepts & Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought

 

Smart_think

5. Smart thinking

Many of Amazon’s book distributors required them to order 10 books at a time. But in the early days they couldn’t afford to so every time they needed to fill a customer’s order they would order the one book they needed, and nine copies of an obscure book on lichens which was always out of stock

 

Cool_list

6. Making the cool list

Three days after launch, Bezos got an email from Jerry Yang, one of the founders of Yahoo, asking if they’d like to be featured on Yahoo’s What’s Cool page. Bezos said yes, Yahoo put the site on the list, and orders sky rocketed.

 

Payday

7. Payday

By the end of its first week, Amazon had took in over $12,000-worth (£7,969) of orders.

 

errors

8. Early errors

At launch, the site wasn’t actually finished which resulted in a huge programming error that allowed sneaky customers to trick Amazon into sending them money. By ordering a negative quantity of books Amazon would credit the money to their bank card.

 

global

9. Going global

During Amazon’s first month in business, it received orders from customers in 50 US states and 45 countries across the world.

 

racking_sales

10. Racking up the sales

The office had a bell installed that would ring every time someone made a purchase. Within a few weeks, sales were happening so frequently that they had to turn it off.

 

cutting_cost

11. Cutting costs

To keep overheads low the office desks were made from cheap doors, with sawed-off two-by-fours for legs. The company still reportedly hands out a Door Desk Award to employees who implement thrifty ideas.

 

marketing

12. Rogue marketing

In the company’s first year, Bezos hired mobile billboards to drive by Barnes & Noble stores displaying the question ‘Can’t find that book you wanted?’ along with Amazon’s website address.

 

profit

13. A long time coming

Despite big sales and a healthy customer base it took almost seven years for Amazon to start making any real money. It was January 2002 before it reported its first profitable quarter, making a modest $5 million (£3.3 million).

 

customer_focus

14. Customer focussed

Amazon employees, including CEO Bezos, spend two days every two years working at the customer service desk

 

spender

15. Hey big spender

Amazon’s users are five times more valuable than eBay’s. Amazon’s average customer brings in about $189 (£123) every year while eBay’s brings in just $39 (£25.90).

 

christmas

16. Christmas Rush

In 1998 the company was dramatically under-staffed for the Christmas holiday season rush. It’s reported that every employee had to take a graveyard shift in the fulfilment centres to meet demand with many bringing their friends and family in to help too

 

malfunctions

17. Costly malfunctions

In 2012, Amazon’s site went down for 49 minutes. The company estimates it lost nearly $5.7 million (£3.79 million) in sales as a result.

 

malfunctions

18. Impressive portfolio

Amazon has bought out several companies, including popular online shoe retailer Zappos for $1.2 billion (£800 million). The company’s portfolio also includes Audible, IMDB and Twitch. In 2013 Bezos purchased The Washington Post for $250 million (£165 million).

 

robot

19. Robot employees

Some centres are so large that the ‘pick ambassadors’ – the employees that collect order items – can walk 10+ miles a day retrieving items. To help its warehouse workers, Amazon now uses robots to assist. The robots are made by Kiva Systems, a company Amazon bought in early 2014 for $775 million (£514 million).

 

pay_to_quit

20. Taking the easy way out

In an effort to reduce the number of unmotivated warehouse employees at its fulfilment centres, Amazon launched a Pay to Quit program in 2014. If a worker hands in their resignation, they’ll get $3,000 (£1,992). By 2017, the amount is expected to be $5,000 (£3,320). Less than 10% of the first wave of staffers offered the deal took them up on it.

 

team

21. A huge team

Today, Amazon has more than 90,000 full-time employees across its 50 fulfilment centres and 20 sorting centres in the US alone

 

team

22. Worldwide success

In late 2015 Amazon reported that it had more than 270 million active customer accounts worldwide, and was shipping to more than 75 countries.

 

sales

23. Incredible sales

On Cyber Monday 2014, Amazon sold more than 300 items per second. Forbes estimates the company’s net worth sits at $175.1 billion (£116.28 billion)

 

billionaire

24. Billionaire status

From humble beginnings to worldwide success, Amazon’s founder and CEO Jeff Bezos is now worth $59.4 billion (£39.45 billion)

 

Integrate with Amazon’s API

Khaos Control integrates fully with Amazon, providing retailers with the opportunity to maximise their sales via Amazon’s different offerings, whilst continuing to trade via their other channels. For more information and a free demonstration of how we can help your business make the most of Amazon, contact us today.

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