Long-term thinking is both a requirement and an outcome of true ownership.
Notable quotes
Lines worth keeping from shareholder letters. Every quote is a click from the page it appeared on.
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From the latest letters
Owners are different from tenants.
Though negative reviews cost us some sales in the short term, helping customers make better purchase decisions ultimately pays off for the company.
Our pricing strategy does not attempt to maximize margin *percentages*, but instead seeks to drive maximum value for customers and thereby create a much larger bottom line—in the long term.
In short, what's good for customers is good for shareholders.
People see that we're determined to offer both world-leading customer experience and the lowest possible prices, but to some this dual goal seems paradoxical if not downright quixotic.
We transform much of customer experience—such as unmatched selection, extensive product information, personalized recommendations, and other new software features—into largely a fixed expense.
Amazon.com continues to show remarkably high levels of customer satisfaction. With a score of 88 (up 5%), it is generating satisfaction at a level unheard of in the service industry... Can customer satisfaction for Amazon climb more? The latest ACSI data suggest that it is indeed possible. Both service and the value proposition offered by Amazon have increased at a steep rate.
Our pricing objective is not to discount a small number of products for a limited period of time, but to offer low prices everyday and apply them broadly across our entire product range.
Free cash flow—our most important financial measure—reached $135 million, a $305 million improvement over the prior year.
Given how much we've grown and how much the Internet has evolved, it's notable that the fundamentals of how we do business remain the same.
Focus on cost improvement makes it possible for us to afford to lower prices, which drives growth. Growth spreads fixed costs across more sales, reducing cost per unit, which makes possible more price reductions. Customers like this, and it's good for shareholders. Please expect us to repeat this loop.