{"id":115885,"date":"2023-10-27T10:23:00","date_gmt":"2023-10-27T14:23:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=115885"},"modified":"2025-09-15T10:51:05","modified_gmt":"2025-09-15T14:51:05","slug":"brief-history-of-amazon","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/brief-history-of-amazon\/","title":{"rendered":"Brief History of Amazon: From a Garage to Modern Success"},"content":{"rendered":"\n<p>What&#8217;s the brief <a href=\"https:\/\/www.shortform.com\/blog\/amazon-company-history\/\">history of Amazon<\/a>? Where did Bezos come up with the idea of Amazon?<\/p>\n\n\n\n<p>Bezos&#8217;s story is the story of Amazon, the business he founded in 1994. Though Bezos doesn&#8217;t take all of the credit for the company&#8217;s success, it was he who shouldered the risk of creating an online retail store in a decade.<\/p>\n\n\n\n<p>Let&#8217;s break down Amazon&#8217;s history, from its beginnings in a garage to hurdling through the Covid-19 pandemic.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p><em>Editor\u2019s note: This article is part of <a href=\"https:\/\/www.shortform.com\/blog\/hub\/professional\/success-guide\/\">Shortform\u2019s guides to success<\/a> and <a href=\"https:\/\/www.shortform.com\/blog\/hub\/professional\/work\/career\/career-development-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">career development<\/a>. If you like what you read here, there\u2019s plenty more to check out in those guides!<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-rise-of-amazon\"><strong>The Rise of Amazon<\/strong><\/h2>\n\n\n\n<p>Pulling from <em>Invent and Wander<\/em> by Jeff Bezos, we\u2019ll trace the brief history of Amazon from Bezos\u2019s childhood to the company&#8217;s modest early days in Seattle. These reports chart Amazon\u2019s survival through the <a href=\"https:\/\/www.shortform.com\/blog\/the-dot-com-bubble\/\">internet bubble<\/a> and the Great Recession, as well as the company\u2019s rapid expansion as it added an increasing number of services, both for its customers and its business partners.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-meet-jeff-bezos\"><strong>Meet Jeff Bezos<\/strong><\/h3>\n\n\n\n<p>The future multibillionaire Amazon founder was born on January 12, 1964, while his 17-year-old mother was still attending high school. <strong>Bezos\u2019s path to wealth and recognition <\/strong><strong>was fraught with financial risk<\/strong><strong>,<\/strong> and quantifiable success would be a long time coming. Bezos and Isaacson trace Bezos\u2019s early family influences, his childhood interest in science and computers, and his fateful decisions during college and after that altered the path of his future.<\/p>\n\n\n\n<p>Bezos\u2019s mother, Jacklyn Gise, became pregnant with him while still in high school. She was only allowed to graduate because Bezos\u2019s grandfather fought for her right to attend, but her success was due to her resilience, which Isaacson says she passed on to her child. At college, Jacklyn met and later married a Cuban immigrant named Miguel Bezos, who adopted Jeff as his son. By the age of 10, Jeff Bezos was already tinkering with computers and the rudimentary internet of the 1970s, an interest that his mother encouraged. During summers at his grandparents\u2019 ranch, <strong>Bezos learned values of perseverance and resourcefulness<\/strong>\u2014as when his grandfather went out of his way to fix things on his own rather than paying someone else.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-amazon-is-born\"><strong>Amazon Is Born<\/strong><\/h3>\n\n\n\n<p>Bezos praises American culture for encouraging and supporting entrepreneurs like himself, but that didn\u2019t make starting his business any less of a risk. For most of the first decade of its existence, Amazon stood on shaky financial ground, and it survived by putting its focus on the customer experience and experimenting with new services and products. In Bezos\u2019s annual shareholder letters, he covers Amazon\u2019s genesis, how it expanded its business model and user base, as well as how it weathered the <a href=\"https:\/\/www.shortform.com\/blog\/dot-com-bubble-burst\/\">dot-com crash<\/a> at the turn of the century.<\/p>\n\n\n\n<p>Bezos developed Amazon\u2019s original business plan not to be a rigid blueprint but to let himself think through his company\u2019s potential problems. Bezos says he selected books as the first product to sell because <strong>an online bookstore could offer a wider selection than any physical retailer.<\/strong> With an initial investment from his parents\u2019 life savings, Bezos moved to Seattle\u2014not only because it was a computing industry hotbed, but for its proximity to the country\u2019s biggest book wholesaler.&nbsp;<\/p>\n\n\n\n<p>Like so many other new technology entrepreneurs in the \u201980s and \u201990s, Bezos started his business from his garage. Amazon\u2019s website went online on July 16, 1995, offering access to nearly every book in print. Even without advertisement, orders started pouring in from all over the world.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-bust-and-boom\"><strong>Bust and Boom<\/strong><\/h3>\n\n\n\n<p>But all was not well in the online business world. During the downturn that was to come, <strong>Amazon survived because of its mission to constantly build on its relationship with customers.<\/strong> While acknowledging that the internet bubble was hard on Amazon\u2019s investors in the short term, Bezos explains the positive signs in Amazon\u2019s actual financial numbers, how the company\u2019s business model was better poised for success than those of other online stores, and how pioneering in whole new markets opened up Amazon for even greater successes.<\/p>\n\n\n\n<p>Isaacson recounts that 1999 marked the beginning of what would be known as the \u201cdot-com crash,\u201d when most of the internet startups of the \u201990s proved to be unprofitable and went out of business. <\/p>\n\n\n\n<p>Amazon shares dropped from $106 in 1999 to $6 in 2001, and <strong>though industry experts predicted Amazon\u2019s collapse, Bezos kept his eyes on its actual value,<\/strong> measured by customers, sales, and cash flow. He reassured investors that Amazon was sound by showing that financially it was performing better than ever. Although Amazon consistently lost money during the years it spent ramping up, it ended 2000 with $1 billion in cash and a record-high score on the American Customer Satisfaction Index.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-forging-ahead\"><strong>Forging Ahead<\/strong><\/h3>\n\n\n\n<p>The next economic hurdle Amazon faced was the Great Recession of 2008. During this downturn and the decade after, Amazon held its course and continued to grow. Bezos highlights three of Amazon\u2019s business innovations that blossomed into permanent, successful programs that have shaped Amazon\u2019s character in the 21st century\u2014Marketplace, Prime, and Amazon Web Services\u2014while explaining how Amazon faced the Covid crisis and continues to flourish in the shifting <a href=\"https:\/\/www.shortform.com\/blog\/virtual-economy\/\">online economy<\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-business-innovations\">Business Innovations<\/h4>\n\n\n\n<p>Launched in 2000, Amazon Marketplace grew out of attempts to host third-party vendors on Amazon\u2019s platform. In its early years, Amazon partnered with other sellers so customers could access goods that Amazon itself didn\u2019t keep in stock. After trying business models that separated outside vendors\u2019 products from Amazon\u2019s offerings, <strong>Amazon Marketplace placed third-party merchandise side-by-side with Amazon\u2019s products.<\/strong> Rather than diminishing Amazon\u2019s profits, Bezos argues that Marketplace is a win for all participants. It encourages healthy competition that results in better deals for customers while allowing Amazon\u2019s partners access to a global distribution network that they never could have built themselves.<\/p>\n\n\n\n<p>Another risky venture was <strong>Amazon Prime, a customer loyalty program that coupled discounts with free shipping on most items.<\/strong> From its conception in 2005, the initial financial projections for Prime suggested it might be a financial boondoggle, and Bezos admits that Prime was risky because if it failed, it would be hard to roll back without incurring customer resentment. Instead, Prime was a smashing success. It turned out that customers were eager to pay an annual premium for the convenience it offered, as well as its added perks such as rapid delivery and streaming video. For many users, Prime made ordering online preferable to shopping in stores.<\/p>\n\n\n\n<p>Amazon\u2019s third major innovation is completely separate from its retail identity. Initiated in 2006, <strong>Amazon Web Services (AWS) provides on-demand cloud computing tools<\/strong> that businesses can access on a pay-per-use basis. Bezos explains that AWS grew out of Amazon\u2019s attempts to solve its own computing problems. Once the company\u2019s software team designed the digital tools they needed, they realized that other companies would need them as well. The first AWS customers were small business start-ups that couldn\u2019t afford their own IT departments, but soon, even large corporations turned to AWS to save costs. Though AWS started as a sort of <a href=\"https:\/\/www.shortform.com\/blog\/benefits-of-a-side-hustle\/\">side hustle<\/a>, it now represents a significant pillar of Amazon\u2019s standing as an economic giant.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-crisis-and-competition\">Crisis and Competition<\/h4>\n\n\n\n<p>In 2020, <strong>the Covid pandemic drove home how important Amazon is to its customers. <\/strong>Online retail let people order basic necessities without risking exposure from <a href=\"https:\/\/www.shortform.com\/blog\/in-person-shopping\/\">in-person shopping<\/a>. However, Bezos says that unlike the normal increase in business that comes with holiday shopping, the surge of online ordering during the Covid lockdown caught Amazon off guard. The company hired almost 200,000 new workers prioritizing delivery of essential goods. Amazon\u2019s Marketplace worked to clamp down on third-party vendors engaged in price gouging, while AWS provided cloud computing to government agencies, medical researchers, and emergency call centers, as well as schools and businesses that had to rapidly switch to online work.<\/p>\n\n\n\n<p>While Amazon took the lead in online retail, its success didn\u2019t crush its competition\u2014instead, <strong>Amazon changed the nature of retail and created new markets for other businesses to pursue.<\/strong> Major competitors like Walmart have now moved into online retail while offering services that Amazon can\u2019t, such as curbside order pickup. By normalizing at-home delivery, Amazon created an avenue for companies such as Instacart that let grocery stores become online vendors. Bezos insists that he isn\u2019t dismayed by the increasingly crowded online marketplace because he doesn\u2019t believe that the competition detracts from Amazon\u2019s value. Rather, the online retail market is still growing, as is Amazon\u2019s overall share.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What&#8217;s the brief history of Amazon? Where did Bezos come up with the idea of Amazon? Bezos&#8217;s story is the story of Amazon, the business he founded in 1994. Though Bezos doesn&#8217;t take all of the credit for the company&#8217;s success, it was he who shouldered the risk of creating an online retail store in a decade. Let&#8217;s break down Amazon&#8217;s history, from its beginnings in a garage to hurdling through the Covid-19 pandemic.<\/p>\n","protected":false},"author":14,"featured_media":77730,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[79,39,33],"tags":[1301],"class_list":["post-115885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entrepreneurship","category-history","category-people","tag-invent-and-wander","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Brief History of Amazon: From a Garage to Modern Success - Shortform Books<\/title>\n<meta name=\"description\" content=\"How did Amazon become the go-to online store in the 21st century? It started like many great inventions. 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