You know that Amazon has this giant ecommerce store that sells everything from A to Z. It would be more surprising to find someone today who hasn’t ever shopped on Amazon than one who uses it almost daily. But did you know that Amazon started off as a modest online bookstore? How did Amazon grow from its modest start to its present day size?
Amazon’s founder Jeff Bezos dreamed big and aimed high. He wanted Amazon to explode from a bookstore to a dominating force in the ecommerce market. He knew he wanted Amazon to be an “everything store”, and its beginning as a simple bookstore was just the start.
Here are a few factors that help Amazon grow:
Amazon Expanded Departments
Amazon didn’t remain long just an online bookstore. It developed other departments to compete with not only physical bookstores but also clothes retailers and department stores.
Amazon’s Associate Program
Amazon’s Associate program really led to Amazon fame and huge boost in sales. Through promoted products and smart targeted advertisement, this program let people, who perhaps had their own book blog, favorite their own books on their own websites and place advertisements for the books on their site. The link to the book would lead the viewer to Amazon’s page for them to buy it. Associate would receive a percentage of the sale as a way for Amazon to say “thanks for directing more traffic to our site”.
Amazon’s Auction Service
One of Amazon’s biggest competitors, still to this day, is eBay. Amazon decided to compete with eBay and set up its own auction service called Amazon Auctions.
In 1998, Amazon decided to level up its competition and enter the music business.It started to sell music and other related products. Bezos went to the public before launching this section and asked what they wanted from an online music store that in-stores couldn’t offer. After surveying his audience, he was able to come up with a innovative ideas for Amazon music. As a result, he was able to compete with other music providers such as iTunes and Windows Media Player.