When Jeff Bezos founded Amazon in 1994, it was just an online bookstore. Fast forward 24 years and several billion dollars in revenue, Amazon is now the world’s largest online sales company and has made Jeff Bezos the richest man in the world with an estimated net worth of more than $112 billion. Of course, Bezos soon expanded the products Amazon offered to include music, videos, and a variety of consumer goods. Since then, Amazon has developed numerous original products and offerings such as Amazon Prime, Alexa, Kindles, Echo and Fire TV, to name a few. Early critics said Bezos was crazy to quit his job and take a risk on that still new internet thing, but Bezos saw an opportunity to create something that couldn’t exist in the real world, a diverse marketplace that offers literally millions of items.
Aside from the fact that people live for the convenience of front-door delivery, Amazon has solidified its top spot in the retail industry by forging relationships with their customers. From the beginning, the site allowed customers to leave both positive and negative reviews on books and products, something that many people criticized, but Bezos defended by saying they were helping consumers make more educated purchasing decisions and thus building a sense of trust. Brand value has always been a core part of the business plan and has earned Amazon a loyal customer base--one that makes up 43 percent of all online sales per year.
Amazon doesn’t waste time worrying about its competitors, it spends time coming up with ways to serve customers better; e.g., Amazon Prime, a paid subscription service for two-day free shipping, because Bezos knew how much online shoppers enjoy free shipping. Again, critics resounded arguing it was impossible to remain profitable while offering a perk like this, but yet again, Bezos proved short-term sacrifices can pay off. Amazon Prime customers spend an average of $1,300 in a year, nearly twice that of non-members; and more than 100 million people globally are Prime members.
Years of dedication to customer service and consistently putting them first is what made Amazon stand out among a sea of retailers. Why take the time to go to Barnes & Noble or Walgreens or the grocery store when you can just order what you need online, know it will be on your doorstep the next day, and rely on fellow customer feedback for honest opinions? Bezos himself has stated that building a trusted brand was more important than worrying about potential copycats.
"There's nothing about our model that can't be copied over time. But you know, McDonald's got copied. And it still built a huge, multibillion-dollar company. A lot of it comes down to the brand name. Brand names are more important online than they are in the physical world."
In most every way, Jeff Bezos exemplifies the phrase “stay in your own lane.” Don’t worry about what your competitors are up to, worry about yourself. Customer care is something at the top of our priority list at EMB, and it’s amazing to see how hard work and a brilliant branding strategy can pay off.