Amazon Corporation

Jaycee Ross Davila, Jan Adrian 2022 Feb 26

Parondo, and Fullbright Villalboos
 Introduction

.Amazon.com is an online retailer, manufacturer of e-book readers, and Web services provider that Jeff
Bezos owns. It is also a massive Internet-based company that sells books, music, movies, housewares,
electronics, toys, and various other items. It acts as a middleman to link retailers and itself to millions of
customers worldwide. Amazon.com offers millions of things that customers may order and have
delivered to their homes on its website. The corporation has grown to become the world's largest
retailer and one of the most popular equities on the stock exchanges

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Mission and Vision
Mission Vision
to be Earth’s most customer-centric company, where
“serve consumers through online and physical stores and customers can find and discover anything they might
focus on selection, price, and convenience.” want to buy online, and endeavors to offer its customers
the lowest possible prices.”
Amazon.com's corporate mission statement

mission guarantees appealing e-commerce services

The primary goal of the business organization is

to become the top e-commerce company in the

to meet target customers' expectations. Price,

world, as stated in this vision statement. In this

selection, and convenience are all factors that the

regard, Amazon's corporate vision statement

company considers.
identifies the following characteristics:
1. Lowest prices 1. Global reach
2. Best selection 2. Customer-centric approach
3. Utmost convenience 3. Widest selection of products

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History
Amazon.com was founded in 1994 by Jeff Bezos, a former Wall Street hedge fund executive.
He chose the name primarily because it began with the first letter of the alphabet and was
associated with the Amazon River. Amazon.com started as a bookseller. Bezos said that
Amazon.com was a technological company specializing in making online transactions easier
for customers. The company swiftly expanded beyond selling books. In 1998, sales of music
and videos began. It expanded internationally by acquiring online booksellers in the United
Kingdom and Germany in the same year. By 1999, the company had grown to include
consumer electronics, video games, software, home improvement items, toys and games,
and various other products.

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Company Milestone
Amazon Experiences Rapid Growth Early On Amazon Gets Funding , Expands Reach
- Jeff Bezos began Amazon as an online bookseller
- In 1995, investors gave Bezos $8 million in series A
in 1994 in the garage of his leased home in Washington
funding. In 1996, the firm launched its affiliate program,
with about $250,000 in start-up financing from his
which allowed bloggers, website owners, and other
parents. In just two months the company was making
influencers to profit from Amazon sales.
$20,000 per week in book sales but he is reinvesting the

money back into the business.

Amazon Issues IPO, Goes Beyond Books
- Amazon went public in 1997 with an IPO of $18 per share as it
tried to expand its reach and grow revenues. According to Fundable,
the company's original investors had received 55,000 percent returns
by 1999. Amazon also sold DVDs, music, home improvement supplies,
software, video games, gift items, and other stuff by 1999. For the first
time ever, it offered free shipping on orders over $100 in 2000, in a
program that would become the forerunner to Amazon Prime, which
offers free shipment on many items the next day. 2
Company Milestone
“Prime” Time for Amazon Amazon Added Half a Million Workers in 2020
- Amazon Prime, a subscription-based loyalty - Amazon employed 500,000 individuals in 2020, a
program started in 2005, allows members access to fast, 63 percent rise from the previous year, owing to the
free shipping as well as a streaming library of movies, pandemic and increased demand for Amazon's online
TV episodes, and exclusive programming. According commerce and cloud computing services, Amazon Web
to a Digital Commerce 360 review of Consumer Services, according to GeekWire. Amazon now has 1.3
Intelligence Research Partners data, 82 percent of million employees.
American homes have a Prime membership, and 57 Amazon Hit a Market Cap of More Than $1.5
percent of Amazon buyers worldwide pay for the Trillion
service on a monthly basis. Since Amazon launched - In July 2020, Amazon's market capitalization
the program, these figures have increased by 139 reached a new high of $1.5 trillion. According to Forbes,
percent. Bezos became the first person in the world to reach a net
worth of $200 billion after momentarily surpassing Bill
Gates in 2017 to become the wealthiest person with a net
worth of $90 billion, and then holding that position
continuously beginning in 2018.
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 Why did the business
What are the benefits and

choose that particular

disadvantages of this

business form? particular business form?

Bezos first incorporated the company in

Advantages
Washington state on July 5, 1994, under the
Limited liability
name Cadabra, Inc. Amazon.com wanted
Business continuity
more than just private investors to keep the
Easy access to capital
growth going. As a result, Amazon.com

became a public corporation in May 1997,

Disadvantages
less than two years after opening its virtual
Time-consuming
Excessive tax filings
doors to consumers and without ever

Double Taxation
making money, raising $54 million on the

Independent management
NASDAQ market.

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 Products & Services
As the world's largest marketplace, In its quest to be all things to all people,
Amazon has almost everything you are Amazon has built an unbelievable
looking for. catalog of more than 12 million products,
As part of its mission to help customers books, media, wine, and services.
“discover anything they might want to If you expand this to Amazon
buy online,” it is crucial for Amazon to Marketplace sellers, as well, the number
sell as many different products as is closer to more than 350 million
possible, across as many industries as products.
possible
 Products & Services
Amazon sells books, music, movies,
Amazon Web Service (AWS) offers a

housewares, electronics, toys, industrial

broad set of global cloud-based

& scientific supplies, kitchen items,

products, including compute, storage,

jewelry and watches, lawn and garden

databases, analytics, networking, mobile,

items, musical instruments, sporting

developer tools, management tools, IoT,

goods, tools, automotive items, and

security, and enterprise applications.

many other goods, either directly or as

These services help organizations move

the middleman between different

faster, lower IT costs, and scale. AWS is

retailers and Amazon.com's millions of

trusted by the largest enterprises and

customers. the hottest start-ups to power a wide

variety of workloads, including web and

mobile applications, game development,

data processing and warehousing,

storage, archive, and many others.

How Amazon Makes Money
Amazon makes money through its retail,
The primary source of revenue for
subscriptions, and web services, among
Amazon is the commissions and fees
other channels.
that it obtains by making the borrowers
Retail remains Amazon’s primary source
and sellers meet. Amazon doesn’t sell
of revenue, with online and physical
a lot of stuff on its own. It just provides
stores together accounting for the
a marketplace guaranteeing a
biggest share.
standardized experience for both the
Amazon Web Services (AWS) currently
buyers as well as the sellers. generates all of Amazon’s operating
Amazon also derives a huge chunk of
profits and is growing at a robust pace.
its revenues from affiliate programs.

Amazon provides affiliates with stores

within their sites. It then charges a

larger commission on their sales.

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Sources:
GOBankingRates. (2021, February 3). 6 Key Milestones That Turned Amazon into the World’s First $1.7 Trillion Retailer.
https://www.gobankingrates.com/money/business/history-making-did-amazon-become-world-s-largest-online-retailer/
Cuofano, G. (2021, July 15). Amazon Mission Statement and Vision Statement In A Nutshell. FourWeekMBA.
https://fourweekmba.com/amazon-vision-statement-mission-statement/?fbclid=IwAR0udzacwB-
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Hall, M. (2020, April 9). Amazon.com. Encyclopedia Britannica. https://www.britannica.com/topic/Amazoncom
Gregory, L. (2019, February 13). Amazon.com Inc.’s Mission Statement & Vision Statement (An Analysis). Panmore Institute.
http://panmore.com/amazon-com-inc-vision-statement-mission-statement-analysis?
fbclid=IwAR0dv_lf4nHYiKgRm8z3XoXy9O1BRIjH4Mfw1QVzilCe0vffhuVYn_qZFG8
Bowman, N. (2022, February 8). Incorporating Your Amazon Business - Should You Form an LLC? Incfile.
https://www.incfile.com/blog/post/amazon-llc?fbclid=IwAR0Pc_46uSCx6SwDR-pKdkjPmcfBIPh6c-E__A0jFnU8hmzkMw6pOqICIig
https://www.britannica.com/topic/Amazoncom
https://aws.amazon.com/products/?aws-products-all.sort-by=item.additionalFields.productNameLowercase&aws-products-all.sort-
order=asc&awsf.re%3AInvent=*all&awsf.Free%20Tier%20Type=*all&awsf.tech-category=*all
https://www.investopedia.com/how-amazon-makes-money-4587523
https://www.managementstudyguide.com/business-model-of-amazon.htm