Amazon’s 10 Secrets No One Knew
In the year 2000 Bubble dot com that had been caused due to excessive speculation in internet-related companies had a significant change on March 2000. This change happened in 27 days, starting from 10th March and ending on 6th April. The massive shedding of NASDAQ’s stock to $1 Trillion rendered the stocks of other online retailers worthless (such as Pets.com and etoys.com). Jeff Bezos, CEO of Amazon.com inc. It has pledged to deliver long term value to shareholders in the year 1907. Amazon emerged steadily after the collapse it faced due to rubble in technology in the year 2000. Since then Amazon has paved its way to nearly a $793.35 billion market capitalization as according to the stats of 26th October 2018.
As of the Q3 2018 earnings released by Amazon on 25th October 2018, it had reported revenue of $56.6 billion for the quarter as compared to its $43.5 billion over the same period in 2017. The chronology of stock rise for Amazon is well balanced over the years, but there are some less well-Known facts about the World’s Largest Online Retailer.
Amazon’s Advancement to Automation
Advancements in the fulfillment centres of Amazon had been made in the year 2012 when Jeff Bezos nearly spent $775 million to acquire robotics manufacturer Kiva. This improvement led to a 20% reduction in Amazon’s operating expenses, although these improvements do not bode well for the future of traditional warehouse workers.
Patience Was the Key to Wealth
In the year 1997 shares of AMZN stock went they public at $18 per share if an investor just bought two shares and patiently waited till 25th October 2018 his shares would have been worth about $21,386.04, with a price of $1782.17 per share.
Underpayment Done to Bezos?
A salary of $81,840 was given to Bezos in the year 2017. This figure is considered equal to that of the median salary of a manager in the IT sector. Although this helps to own 17% of AMZN shares, Bezos generally avoid this as according to 25th Oct 2018’s Forbes magazine his net worth is around $135.7 billion.
Downtime Equals to Loss
The continuous running of servers is a huge requirement in the virtual retail environment and extremely important due to the involvement of revenue. In 2013 Amazon suffered a top-line loss of around $4.8 million just because of a 40-minute crash of the Amazon platform. It also suffered a temporary block of all international traffic due to the crash of Amazon Prime Day in 2018.
Being Economical Equals Profit
$10,000 is a lot of money, but Asana, a privately held software company, offers this amount to its employees just for some additional desk items. Compared to this, employees at Amazon don’t even get free lunches and would do well to get a flashlight in their desks. Even from the vending machines, lightbulbs have been removed so that electricity can be saved.
PowerPoint Presentations Not Needed
It is a responsibility for every employee to have good skills in Microsoft Office Suite. But it is a very remarkable fact that at Amazon, PowerPoint is not a need and can be excluded from the Suite as it doesn’t allow the use of this software in meetings. It is recommended that the ones participating in the meeting at Amazon have their topic wise reading material for 30 minutes at the beginning of the meeting. This is as per accordance with Bezos’s latest letter to shareholders.
Value of Books
In the year 1994, when Amazon first came into action, its first-ever material to be sold online involved books. Even today, Amazon holds value to its bookselling and has over 20 primary categories and approximately 150 subcategories. Amazon continues to prevail over every other retailer in the sales of books and consumer electronics.
Breaking the Wall
Convenience is something that one aspires while doing online shopping. Amazon knows this and this knowledge has helped it to get a hold of customers all around the globe. Not only convenience but the difference in its pricing is also a significant factor for Amazon to dominate over its competitors like Walmart Stores Inc.
Empathizing With the Customers
The management at Amazon is different from others as the organization is exceptionally consumer-centric. Each employee, including Bezos himself, has been mandated to spend two days in two years as a customer representative. This is a very crucial step as it reinforces acquiring principles that require its leaders to “start with the customer and move backwards.”
Privacy Protection From CIA
CIA, one of Amazon’s most famous and in contrast, the most controversial customer signed a $600 million cloud storage deal with Amazon Web Services division. It has been calculated that Amazon nearly has 162 million unique visitors per month, and this deal has caused the circulating of a petition urging Bezos not to share customer privacy with the CIA.