{"id":37939,"date":"2021-06-09T13:09:00","date_gmt":"2021-06-09T17:09:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=37939"},"modified":"2021-06-12T14:50:27","modified_gmt":"2021-06-12T18:50:27","slug":"amazon-core-values","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/amazon-core-values\/","title":{"rendered":"Amazon: Core Values and What They Mean"},"content":{"rendered":"\n<p>What are Amazon&#8217;s <a href=\"https:\/\/www.shortform.com\/blog\/clarifying-your-values\/\">core values<\/a>? How does Bezos instill these values in his team?<\/p>\n\n\n\n<p>There are a few core values that Jeff Bezos tries to emphasize to his team. Some of these values include long-term ambitions, the ability to dive deep, and their competitive retailing strategies.  <\/p>\n\n\n\n<p>Continue reading for more information on Amazon&#8217;s core values.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Amazon Company Values<\/strong><\/h2>\n\n\n\n<p>Throughout the historical narrative, <em><a href=\"https:\/\/www.shortform.com\/blog\/the-everything-store-amazon\/\">The Everything Store<\/a><\/em> discusses the Amazon core values that Jeff Bezos tirelessly emphasizes. We\u2019ve compiled the most important company values here, with representative quotes and anecdotes illustrating the value in action.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Huge Long-Term Ambitions<\/strong><\/h3>\n\n\n\n<p>Bezos and Amazon are known for thinking huge and having galaxy-sized ambition. They then execute it with dogged determination and boldness.<\/p>\n\n\n\n<p>\u201cThinking small is a self-fulfilling prophecy. [In contrast,] leaders create and communicate a bold direction that inspires results. They think differently and look around corners for ways to serve customers.\u201d<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>From initiation, Bezos imagined an Everything Store where the entire Earth\u2019s catalogue was accessible to anyone.<\/li><li>When hiring Walmart distribution exec Jimmy Wright in 1998, Bezos wanted a distribution system 10x larger than it currently was, not just in the US but also the UK and Germany. He wanted a system that <strong>\u201cwill handle everything but an aircraft carrier.\u201d<\/strong><\/li><li>In the toy season in 1999, Bezos insists on spending $120 million to stock every toy imaginable. They eventually end with a lot of surplus inventory.<\/li><li>When building the AWS S3 service, Bezos said,<strong> \u201cthis has to scale to infinity with no planned downtime. Infinity!\u201d<\/strong><\/li><li>Brad Stone: \u201cthe future of [Amazon] becomes easy to predict. The answer to almost every conceivable question is yes.\u201d Will Prime become same-day shipping? Yes. Will Amazon one day run its own delivery? Yes.&nbsp;<\/li><li>\u201cWe are genuinely customer-centric, we are genuinely long-term oriented and we genuinely like to invent. Most companies are not those things. They are focused on the competitor, rather than the customer. They want to work on things that will pay dividends in two or three years, and if they don\u2019t work in two or three years they will move on to something else. And they prefer to be close-followers rather than inventors, because it\u2019s safer. That is why we are different. Very few companies have all of those three elements.\u201d<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Boldness<\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Bezos: \u201cPhysically, I\u2019m a chicken. Mentally, I\u2019m bold.\u201d<\/li><li>In its first letter to shareholders: \u201cWe will make bold rather than timid investment decisions.\u201d<\/li><li>To eBay and Amazon board member Cook: \u201cWe\u2019re going to win, so you probably want to consider whether to stay on the eBay board.\u201d<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Speed<\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>\u201cSpeed matters in business. Many decisions and actions are reversible and do not need extensive study. We value calculated risk taking.\u201d<\/li><li>During the IPO process, Bezos wasn\u2019t allowed to speak to press for 7 weeks. \u201cI can\u2019t believe we have to delay our business by seven years,\u201d magnifying the calendar time by the speed of Internet evolution.<\/li><li>In 1999, when accounting worried about Amazon\u2019s profitability, Bezos insisted on customer experience and was skeptical of profitability projections. \u201cIf you are planning for more than twenty minutes ahead in this kind of environment, you are wasting your time.\u201d<\/li><li>When developing the Kindle e-reader, Kessel asks Bezos what the deadline for the product would be. Bezos: \u201cYou are basically already late.\u201d<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Long-term Focus<\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Ignoring stock prices. \u201cYou don\u2019t feel thirty percent smarter when the stock goes up by thirty percent, so when it goes down you shouldn\u2019t feel thirty percent dumber.\u201d<\/li><li>The compensation packages spread the signing bonus over 2 years; grant RSUs over 4 years, but 5% at the end of the 1st year, 15% their second year, and 20% every 6 months over the final 2 years. Further grants vest over 2 years and are also backloaded.<\/li><li>Blue Origin\u2019s motto: Gradatim Ferociter, \u201cstep by step, ferociously.\u201d Their coat of arms has tortoises, invoking the story of the tortoise and the hare.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Ability to Dive Deep<\/strong><\/h3>\n\n\n\n<p>Bezos is renowned by his staff for being able to dive into minute details of the business.<\/p>\n\n\n\n<p><strong>\u201cLeaders operate at all levels, stay connected to the details, audit frequently, and are skeptical when metrics and anecdote differ. No task is beneath them.\u201d<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Bezos reportedly has the ability to comment insightfully on topics he has no prior training in.<ul><li>In a discussion about algorithms to optimize picker movements, a five-engineer team presented their work over 9 months. Bezos read the paper, said \u201cyou\u2019re all wrong,\u201d and started writing on the whiteboard. Said an engineer: \u201cEverything he put down was correct and true.\u201d<\/li><\/ul><\/li><li>He dove into a distribution problem dealing with batch sizes and packaging, impressing a consulting professor in willing to be there \u201dwith his sleeves rolled up, climbing around the conveyors with all of us.\u201d<\/li><li>When hiring Udi Manber, an algorithms expert, Bezos asks him to describe a new algorithm he invented. Manber later said: \u201cHe not only fully understood it, but did it faster than most people. I did not expect that from a CEO. It would have taken me a month to explain it to most senior Yahoo people.\u201d<\/li><li>(Shortform note: one of Steve Yegge\u2019s <a href=\"https:\/\/plus.google.com\/u\/0\/110981030061712822816\/posts\/AaygmbzVeRq\">famous posts about Amazon<\/a> describes Bezos as \u201cso goddamned smart that you have to turn it into a game for him or he\u2019ll be bored and annoyed with you.\u201d<ul><li>\u201cFor years he\u2019s had armies of people taking care of <em>everything<\/em> for him. He\u2019s had a general\u2019s view of the industry battlefield for ten years. Not only do you have more time than anyone else, and access to more information than anyone else, you also have this long-term eagle-eye perspective that only a handful of people in the world enjoy. So he\u2019s really, REALLY good at reading presentations.\u201d<\/li><li>Yegge proposes deleting every 3rd paragraph in your narrative so that Bezos has to fill in the blanks and avoid being bored.)<\/li><\/ul><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Retailing Strategy<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Early on, they believed that the larger the company got, the lower the prices it could exact from book distributors, and the more distribution capacity it could afford.<\/li><li>In their first shareholder letter: \u201cMarket leadership can translate directly to higher revenue, higher profitability, greater capital velocity, and correspondingly stronger returns on invested capital.\u201d<\/li><li>Later in 2001, meeting with Jim Collins, they came up with a renewed <a href=\"https:\/\/www.shortform.com\/blog\/virtuous-cycle-john-malone\/\">virtuous cycle<\/a>: lower prices leads to more customer visits, leading to more sales, which leads to better returns on fixed costs, which allows further lowering of prices. More customer visits also led to more third-party sellers, which increases selection and thus increases more customers.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Broad selection<\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>The early advantage of Amazon was its huge catalog of obscure titles that no physical bookstore could possibly stock.&nbsp;<\/li><li>Bezos wanted to <a href=\"https:\/\/www.shortform.com\/blog\/build-confidence-and-destroy-fear\/\">build confidence<\/a> in customers that Amazon could stock anything they wanted, making Amazon the first place they\u2019d look.<\/li><li>In 1999 Bezos had aggressive ideas, like the Alexandria Project (get 2 copies of every book ever printed); and Project Fargo (get one of every product ever manufactured and store it in a distribution center).<\/li><li>When Amazon expanded to toys in 1999, Bezos insisted on stocking every possible toy and spending $120 million. (They end the year with a huge toy surplus.)<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Learning from Partners, then Beating Them<\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Amazon Marketplace launched to some concerns about competing with third party sellers who might undercut Amazon. However, Bezos understood that if someone else knew <a href=\"https:\/\/www.shortform.com\/blog\/how-to-sell-more-products\/\">how to sell more<\/a> cheaply than Amazon, Amazon should let them and figure out how they did it. They did this for jewelry, which was a more complicated category than expected.<\/li><li>Amazon uses pricing bots that crawl competitors\u2019 prices and adjust Amazon\u2019s prices accordingly.<\/li><li>(Shortform note: Amazon now manufactures its own branded goods like batteries and USB cables, no doubt fueled by its immense dataset on the bestselling, most profitable goods.)<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Branding<\/h4>\n\n\n\n<p>Bezos recognizes the power of branding and establishing how Amazon is perceived in the customer\u2019s mind.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Bezos insisted on reporting of the company as Amazon.com<\/li><li>He saw the IPO as a global branding event.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What are Amazon&#8217;s core values? How does Bezos instill these values in his team? There are a few core values that Jeff Bezos tries to emphasize to his team. Some of these values include long-term ambitions, the ability to dive deep, and their competitive retailing strategies. Continue reading for more information on Amazon&#8217;s core values.<\/p>\n","protected":false},"author":8,"featured_media":37987,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,14],"tags":[376],"class_list":["post-37939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-management","tag-the-everything-store","","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>Amazon: Core Values and What They Mean - Shortform Books<\/title>\n<meta name=\"description\" content=\"As CEO of Amazon, Jeff Bezos is insistent on emphasizing Amazon&#039;s core values to his team. Learn what the values are and how he enforces them.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/amazon-core-values\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Amazon: Core Values and What They Mean\" \/>\n<meta property=\"og:description\" content=\"As CEO of Amazon, Jeff Bezos is insistent on emphasizing Amazon&#039;s core values to his team. Learn what the values are and how he enforces them.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/amazon-core-values\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-09T17:09:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-06-12T18:50:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2021\/06\/working-at-amazon.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"918\" \/>\n\t<meta property=\"og:image:height\" content=\"565\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Hannah Aster\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Hannah Aster\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/amazon-core-values\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/amazon-core-values\/\"},\"author\":{\"name\":\"Hannah Aster\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/f39f52830e4f7039a16e45d12354542f\"},\"headline\":\"Amazon: Core Values and What They Mean\",\"datePublished\":\"2021-06-09T17:09:00+00:00\",\"dateModified\":\"2021-06-12T18:50:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/amazon-core-values\/\"},\"wordCount\":1332,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/amazon-core-values\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/06\/working-at-amazon.jpg\",\"keywords\":[\"The Everything Store\"],\"articleSection\":[\"Business\",\"Management\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/amazon-core-values\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/amazon-core-values\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/amazon-core-values\/\",\"name\":\"Amazon: Core Values and What They Mean - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/amazon-core-values\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/amazon-core-values\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/06\/working-at-amazon.jpg\",\"datePublished\":\"2021-06-09T17:09:00+00:00\",\"dateModified\":\"2021-06-12T18:50:27+00:00\",\"description\":\"As CEO of Amazon, Jeff Bezos is insistent on emphasizing Amazon's core values to his team. 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