But this is Day 1 for the Internet and, if we execute well, for Amazon.com.[1]
Topic map
Numbers
Comparisons
As reported (1997)
| Metric | Value |
|---|---|
| Revenue | $147.8 million[17] |
| Revenue growth | 838% revenue growth[18] |
| Customers served | more than 1.5 million customers[19] |
| Inventory titles at year-end | over 200,000 titles[20] |
| Cash and investment balances at year-end | $125 million[21] |
| IPO loan | $75 million loan[22] |
| Web site audience rank (Media Metrix) | within the top 20[23] |
| Seattle distribution center expansion | 70% expansion[24] |
| Virtual store footprint | 6 football fields[25] |
Notable quotes
We believe that a fundamental measure of our success will be the shareholder value we create over the long term.
When forced to choose between optimizing the appearance of our GAAP accounting and maximizing the present value of future cash flows, we'll take the cash flows.
We will make bold rather than timid investment decisions where we see a sufficient probability of gaining market leadership advantages.
Setting the bar high in our approach to hiring has been, and will continue to be, the single most important element of Amazon.com's success.
You can work long, hard, or smart, but at Amazon.com you can't choose two out of three
We will continue to measure our programs and the effectiveness of our investments analytically, to jettison those that do not provide acceptable returns, and to step up our investment in those that work best. We will continue to learn from both our successes and our failures.
Lessons
- We will continue to measure our programs and the effectiveness of our investments analytically, to jettison those that do not provide acceptable returns, and to step up our investment in those that work best. We will continue to learn from both our successes and our failures.[32]
- We will make bold rather than timid investment decisions where we see a sufficient probability of gaining market leadership advantages. Some of these investments will pay off, others will not, and we will have learned another valuable lesson in either case.[33]
Capital actions
Entities mentioned
Risks the author flagged
- aggressive, capable, well-funded competition; considerable growth challenges and execution risk; the risks of product and geographic expansion; and the need for large continuing investments to meet an expanding market opportunity[36]
- This strategy is not without risk: it requires serious investment and crisp execution against established franchise leaders.[37]
Predictions
- Tomorrow, through personalization, online commerce will accelerate the very process of discovery. (long)[38]
- online bookselling, and online commerce in general, should prove to be a very large market, and it's likely that a number of companies will see significant benefit (long)[39]
- We are planning to add music to our product offering, and over time we believe that other products may be prudent investments. (near)[40]
- We also believe there are significant opportunities to better serve our customers overseas, such as reducing delivery times and better tailoring the customer experience. (medium)[41]
Anecdotes
- Bezos describes Amazon's virtual bookstore as so large it would occupy 6 football fields, contrasting physical retail limits with online selection.[42]
- Bezos recounts his interview pitch to prospective employees — you can work long, hard, or smart, but not just two of the three — to convey the demanding culture.[43]