The Rise Of Amazon

1959 Words4 Pages

For many, the dot com collapse in the mid nineteen nineties seemed like the end of corporates’ place on the internet. Very few people trusted these new online companies, which led to many promising websites disappearance, but a few Silicon Valley projects that were able to survive greatly shaped the new wave of e-commerce. Following in the footsteps of success stories such as, many companies have reshaped the way they conduct online business and are fighting to stay in front of new technological advancements during this decade of rapid technological change. The history of Amazon’s success, transformation, and creation is a good reference point to a developing problem world-wide, the displacement of jobs due to the internet and other …show more content…

With very humble roots, grew itself from a tiny garage start up in 1994 into a multibillion dollar corporation in just twenty one years. Jeff Bezos, the founder of Amazon transformed a modest book selling website into the largest online retailer of all products which survived a giant collapse in the economy and the dot com bubble, helping Amazon start its own agenda. Amazon was vastly different than many other dot com startups due to its realistic, long term, and growth focused agenda, which greatly differed from the unrealistic, quick online startups whom mostly disappeared during the decade. Amazon has been one of the frontrunners in the new digital world, by displaying a progressive business model that builds for growth, and creating a positive future for …show more content…

Few other companies can compete with Amazon’s ability to use ecommerce to cut costs of manufacturing, selling, holding, and making its products as affordable as possible. This is an attribute that has become increasingly important to American’s as they try to recover the massive loss in average income that accrued during the recession of 2008 and 2009. In a scholarly article written by two University of Chicago economic students, Ethan Lieber and Chad Syverson, in 2011, “Online vs. Offline Competition” there is a comparison made by the competition for book sales with the traditional retail store Barnes & Noble and Amazon’s online book sales. In the article the two writers focus on Amazon’s ability to undercut Barnes & Noble’s costs due to their ability to hold less inventory, buy in bulk if needed, and have a lower employment cost per book sold. This was contributing to Amazon’s lead in book sales, becoming the “World’s Largest Bookseller” and current control of the book sales market. Another huge advantage that Amazon online sales has over retail stores is the absence in income tax due to having buyers adopt these costs while still keeping the price of the product lower. “Only when the online seller “has nexus” in the consumer’s state is the sales tax automatically added to the transaction price by the firm. (16, Lieber, Syverson)” This shows

In this essay, the author

  • Explains that the dot com collapse in the mid nineteen nineties seemed like the end of corporates’ place on the internet. silicon valley projects that survived greatly shaped the new wave of e-commerce.
  • Analyzes how grew from a small garage start-up in 1994 into the largest online retailer of all products in just twenty-one years.
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