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    Amason: Always Take All Risks And Stick To It.

    2014/7/5 13:21:00 12

    AmazonDevelopment TipsAdventure

    In the summer of 1994, Geoff (JeffBezos) resigned from his job in Wall Street and flew to MacKenzie Worth, Texas, with his wife Mackenzie MacKenzie (Fort Worth) and hired a car there. On the way Mackenzie drove to the Pacific Northwest Coast, Geoff set up a sales directory retail companies that could make full use of Internet technology. Later, a garage in the outskirts of Seattle became the first office of Amazon. And a year later, Amazon sold the first book in the company's history.


    Since then, the world has witnessed the rise of a book sales website and believes that Amazon is still an online bookstore. However, Bezos's ambition is far from that. Books are indeed a good way to enter the online retail industry: once familiarity with the process of online book purchasing, people will buy more other products. Amazon will therefore be able to grab more data about consumer demand. If someone commented on the merchandise they bought, it would enrich the shopping experience of other shoppers.


    Bezos also found a virtuous circle in the industry: low prices can boost sales and attract customers and businesses, which in turn promotes prices. As long as the company puts the interests of its customers in the first place, this virtuous cycle can bring growth to the company. Bezos first registered the company's name as "relentless.com" (meaning "relentless" website). Although the name lacks much emotion, it highlights Bezos's ambition at that time.


       Shopping mobile phone Roaring Across the Horizon


    Amazon launched the company's first smartphone Fire Phone in June 18th this year, which once again made a perfect interpretation of Bezos's ambition. In addition to its slim appearance, FirePhone has outstanding personality design in many aspects, and 3D screen is one of them. Object recognition function Firefly is able to identify specific objects, two-dimensional code, image, voice, video and other information, and then can also guide users to buy relevant identification products on Amazon website. If really designed, Fire Phone is fully capable of turning mobile phones into shopping windows.


    Amazon is always able to anticipate the trend of consumer reading and shopping habits and respond in a timely manner. Amazon launched its direct competition with apple and Google by launching iPad like tablet devices, e-book readers and TV set top boxes for streaming video. Apple and Google also provide consumers with hardware products, digital content and service products. Amazon hopes that the function and quality of its products can become a major selling point, so that the company's hardware devices have the same consumption appeal as online stores. Then consumers will naturally buy other peripheral products.


    According to the data released by retail Internet Retailer, Amazon sells 230 thousand kinds of goods in the US market, about 30 times that of WAL-MART. As the world's largest retailer, WAL-MART also has a rapidly growing online business. Last year, Amazon's total annual revenue was $74 billion 500 million.


    However, Amazon's annual revenue will almost double if other vendors are counting the products sold by Marketplace on Amazon's third party trading platform. Although it has become the largest online retailer in the United States, Amazon's annual revenue growth is still higher than the average of 17% in the e-commerce market. In the European and Japanese markets, Amazon is also a top tier online retailer and has begun to layout the Chinese market. Amazon is the ninth largest retailer in the world in terms of last year's revenue. According to market research firm Kantar Retail, Amazon will become the world's second largest retailer by 2018.


    In addition to its huge success in the field of online retailing, Amazon has opened up two other disruptive businesses. Kindle e-book reader is the first to transfer people's reading objects from paper books to e-books. At present, the annual revenue scale of the US e-book market has exceeded 10% of the total book market in the United States, and Amazon has also become the leader of the e-book market in the United States. Amazon also launched the pay-as-you-go service based on cloud computing in 2006. The annual revenue of the cloud service named Amazon Web Services has reached US $9 billion and has greatly reduced the technology cost of the company's establishment and operation.


    Amazon also has another advantage that most competitors admire: a very patient shareholder. Last year, Amazon realized a net profit of only $274 million, which is hardly worth mentioning compared with its annual revenue and the market value of up to $154 billion. Despite a slight decline in recent times, Amazon's current share price is still more than 500 times its earnings per share last year, which is 34 times that of WAL-MART. Amazon's core retail business is not profitable. Most of its net profit comes from independent businesses on Amazon's third party trading platform, Marketplace.


    Amazon's success has also created many enemies for itself, including competitors crushed by its relentless low price strategy, and some competitors are even directly acquired by Amazon. Amazon has been criticized for squeezing warehouse workers and avoiding taxes in the United States, Britain, France and Germany. The French Minister of culture regarded Amazon as the culprit of "the disappearance of physical Bookstores". For Stephen Colbert, a famous American comedian, Hachette, a traditional publisher, Bezos is simply "death of bezo".


       Strive to build Prime membership service


    Amazon currently has about 25 million Prime service members who only pay a certain annual fee per year (US $99, UK $79) to enjoy year-round shopping free postage activities and more digital content services. Scot Wingo of ChannelAdvisor, an e-commerce service provider, believes that the annual consumption expenditure of Amazon Prime members is about four times that of non members, and occupies 50% of all consumer expenditures on the Amazon platform. Scott Scot


    Many activities launched by Amazon are aimed at enhancing the adhesion of Prime services. In April this year, Amazon bought a TV series produced by the US Cable Tv Co HBO for free viewing by Prime members. The amount of payment is estimated to be between $200 million and $250 million. In June 12th of this year, Amazon added about 1000000 songs to Prime services. Amazon also develops programs for Prime members, including several children's TV dramas. If you have Kindle reader or tablet PC, Prime members can borrow books for up to a month. Such a slow reader will no longer have to pay for it.


       Amazon They care very much about whether consumers have Kindle readers or tablet computers. Sebastian, head of Amazon Marketplace, said that the transition from desktop shopping to mobile shopping is the second big trend in the field of electronic commerce in the whole SebastianGunningham. Amazon's electronic devices are trying to seize this trend.


    From the beginning, you can only read the Kindle reader of e-book to the Kindle Fire tablet that can be purchased, and then to the Fire Phone smart shopping phone. Amazon is realizing its promise step by step. Compared with rival Apple and Google devices, Amazon's hardware device is not inferior, but also has price advantage. Amazon does not want to make profits from hardware sales, but wants to integrate hardware devices with other services of the company to make hardware devices the carrier of Amazon shopping paradise. Amazon provides Prime free one year membership for Fire Phone buyers, with the aim of encouraging consumers to become familiar with Amazon's streaming services and free delivery services.


    In addition to the e-book reader market, Amazon's performance in other hardware devices is hard to please. Apple and Google's tablet sales easily surpassed Kindle Fire, partly because the number of apps in Amazon's online app store is far less than those of the two biggest competitors. However, the launch of Fire Phone shows that Amazon has not abandoned the hardware market. Eric Best of Mercent, an e-commerce software company, said: "the battle for shoppers will be staged at the mobile phone end". Eric, Eric Amazon believes that it is essential to have a place in the market.


    Amazon's competitors are constantly changing all types of screens to display windows for other businesses. Google has started selling "local directory advertising", which aims to guide shoppers to shop nearby businesses. This online retailing eliminates the cost of transporting warehouses and trucks. Google even provides shoppers with pictures and prices similar to Amazon's website to enrich their search results. After Google launched its online retail business, Best has noted the downward trend of Amazon's Marketplace revenue growth.


       Success comes from always. Insist


    Some people in the industry regard Google as the biggest threat to Amazon, but others point out that WAL-MART, which owns e-commerce business, is the real enemy of Amazon because WAL-MART's e-commerce revenue growth has surpassed that of Amazon. China's Alibaba will also raise large sums of money through IPO. Wanelo, a social networking initiative, has also become a leader in the new round of e-commerce. The mobile shopping platform Instacart has even launched the "one hour delivery" service.


    In the face of challenges from the market, Bezos has been insisting on Amazon's continued user oriented development strategy. Bezos wrote letters to shareholders in 1997 when Amazon listed, reminded them that Amazon could only take long-term development strategy. However, adhering to the long-term development strategy requires large sums of money. Amazon was able to win cooperation with retailers in the early days of the company's establishment because it did not have financial pressure to build and maintain warehouses at that time. At present, the establishment of a large number of storage centers and data centers has also changed Amazon's capital chain relationship. And now the huge capacity of physical warehousing has become the main attraction of Amazon to businesses.


    In the past five years, the cumulative free cash flow of Amazon has reached $10 billion, while the cumulative net profit for the same period was only $2 billion 900 million over the past three years, he said. For a company with a market capitalization of up to 154 billion dollars, this net profit is really negligible. However, investors have been hoping that Amazon's rapid growth will raise net profit levels. A recent report by Wolfe Research, a securities research firm, shows that Amazon's share price is somewhat low compared with its huge revenue figures.


    In an interview with television last year, Bezos admitted that the Amazon model would "be overturned someday," but he hoped it would not happen in his lifetime. At least this scene is hard to come up in the near future, not because Amazon can always make the right decisions, but because Bezos bet on customers, investors patience, technology and scale decisions seem to have been rewarded. Moreover, Bezos has always chosen to take all risks and stick to it.

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