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The Prime of Amazon:

How Amazon has Captivated its Millions of Customers

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Abstract

In 1994 Amazon prime was created by Jeff Bezos. The company has grown at  a praid rate, conquering many different markets in the United states. Amazon has become a top competitor for many different businesses. Amazon was able to grow at this rapid rate because of the large number of customers they acquired in this short time. Amazon acquired these customers by becoming the most convenient and easy to use.

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Biography

My name is Lily Howard I graduated from the class of 2020 at Wakefield school in the Plains, VA. I will be attending College of Charleston in the fall of 2020 as an art history major.  I chose Amazon Prime as my topic because I have taken notice on the large impact Amazon has had on our world. This topic interested me as well, because there is still  so much more to come for Amazon in the future.

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Questions

Four Questions

1. How has Amazon Prime changed the online shopping industry? 

2.  Did Jeff Bezo plan for Amazon to become as big as it did? 

3. How has Jeff Bezos accomplished the Amazon phenomenon?

4. How has Amazon captivated their millions of customers?

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How has the growth of Amazon impacted traditional brick and mortar businesses and the  online market?

Informative Speech

Amazon Prime is the company we have all watched explode with growth right before our eyes. Amazon is a powerful company which has grown at a rapid rate and I believe will not slow down anytime soon. Amazon is an incredible company which has been able to grasp the needs of online shoppers. The website has everything you could ever need and more, hence why it is called the “everything store”. “When Amazon first launched in 1995 as a website that only sold books, founder Jeff Bezos had a vision for the company's explosive growth and e-commerce domination. He knew from the very beginning, he wanted Amazon to be "an everything store" (Hartmans). The company offers fast and efficient delivery with their membership program. They have cheap and affordable prices. Amazon has the online shopping world in the palms of its hands. Amazon currently is an unstoppable company.


Amazon has grown throughout the years by expanding the variety of products they sell and  creating products of  their own. In 2002 Amazon's market started selling clothing. Once Amazon began selling clothing, the company kept growing and growing. In 2005, Amazon introduced their new online membership program, Amazon Prime. Amazon Prime is a membership program that shoppers pay to be part of which offers many benefits. With Amazon Prime customers are able to receive the best prices of products and are able to have prime shipping. Prime shipping is fast and efficient. Shortly after Amazon's prime membership was introduced, the company began offering shipping on Sundays. Shipping on Sundays allowed shoppers to purchase items on Fridays, then receive the item by Sunday in time for use the following week. With a prime membership, Amazon also offers same-day shipments: "We will also continue to offer Prime Now, same-day delivery, as well as millions of items for two-day delivery" (“Amazon's Free”). Once Amazon took off with Amazon Prime and selling a large variety of stock they began coming out with their own products. Amazon first made the Kindle which was somewhat similar to an ipad; however, the device was designed strictly for reading books. The Kindle progressed over the years adding games and apps, making it more than just a  reading tool. Following the Kindle was a “Fire phone” created in the likeness of an iPhone or Android smartphone. November 10, 2015 Amazon announced the Amazon Echo. This was the first of its kind. The Amazon Echo is a device which will respond to the name “Alexa.” Alexa will play music, Alexa will answer questions, Alexa will tell the weather, and Alexa will even sing happy birthday. The Amazon Echo has become a big market for Amazon. The Echo has advanced throughout the years, always updating  new models and features. Amazon has been able to grow like this over the years because the company continues to accelerate with new and exciting features (“Amazon's Free”).


Amazon is the online shopping leader. Amazon is the leading online retailer because Amazon sells basically anything. Why would you shop some other website over Amazon when you have the power to buy anything and have the product at your doorstep in a matter of days? The power is at the tips of your fingers. Amazon is a trusted company, shoppers know that if they order a product from Amazon it will be of good quality and will be safely delivered in a short amount of time. Amazon is so well known and liked by users; this is one of the main factors to Amazon’s growth. These numbers from “Prime day” in 2018 show Amazon's strengths in sales. Prime day is a large 48 hour sale on Amazon's website. (Loeb) “On Prime Day 2018, more than 100 million items were sold, and sales are estimated to exceed $3.4 billion when final numbers are revealed.” (Loeb) The main reason Amazon's competitors have fallen so far behind  is because they struggle to keep their in store business alive if their main focus is on their online sales. Amazon's competitors struggle to compete because Amazon has taken over the online market. Amazon’s exact share of the U.S. ecommerce market was 49% in 2018. This is more than all three of Amazon's top competitors combined. Pretty cool, huh?  95 million people in the U.S are members of Amazon prime. Amazon took over the online shopping industry and is not slowing down anytime soon; the company will continue to grow (Loeb).


Amazon already owns almost half of the U.S ecommerce market and plans to continue to dominate the market. Amazon's plans for the future include building new headquarters. The company is planning for new headquarters in Arlington, Virginia, right outside of Washington, D.C. The plans for the new Amazon headquarters basically look like a new city. Amazon plans to not only make advancements on their website but to keep expanding the “Echo” market. Amazon  has over 10 Echo products available. Amazon's plans to continue with the Echo line and by doing this the company will continue to grow (Coughlin). “Priya Abani, director of Amazon Voice Services, sums them up succinctly: “We basically envision a world where Alexa is everywhere.” (Coughlin) Amazon wants Alexa to be there every second of every minute of every hour of every day.  In 2016, Amazon introduced the idea of drone Prime deliveries. Amazon still continues to work on this futuristic idea. If released, the drone would help Amazon to continue growing. Growing Amazon's company has not been a problem in the past and the company is proving that growth will not be a problem in the future (“Amazon's Free”).


Amazon continues to grow each and every day by constantly expanding their market. Amazon has worked hard to not slow down their acceleration of growth. Amazon has changed the online shopping industry and has actually taken over considering it takes up close to half of the online market. Amazon has excelled  up to their standard of being the “everything store”. Amazon has  clothing, phones, food, toothpaste, the list goes on and on. One reason I enjoy researching and informing others about this topic  is because as I write this and as you read this Amazon is working on their next big thing. 


Bibliography  

"Amazon's Free One-Day Shipping Is Already Here." International Business Times [U.S. ed.],

4 June 2019. Gale In Context: Global Issues, https://link.gale.com/apps/doc/A587629494 /GIC?u=va_p_wakef_s&sid=GIC&xid=1875e092. Accessed 15 Sep. 2019.


This source informs me with information on Amazon's new addition of two and one day shipping. It talks about the success of this new addition to their Amazon Prime membership. This is a new addition to the company and has proven to be very successful. Amazon plan to continue their very fast and efficient shipping.


Coughlin, Daniel. “What Amazon Plans to Do Next.” What Amazon Plans to Do Next, 5 May 

2019, www.msn.com/en-in/money/photos/what-amazon-plans-to-do-next/ss-BBNud0g.


This article focuses on the advancements that Amazon plans to make to their company. It speaks of special products that they have had in the works for years now like the Amazon drone. It also talks about Amazon's future plans for new headquarters. It is really interesting to see how much more the  company is planning on growing.


Dayton, Emily. “10 Fascinating Amazon Statistics Sellers Need To Know in 2019.” The 

BigCommerce Blog, 18 May 2019, www.bigcommerce.com/blog/amazon-statistics/.


This article gives me a really good insight on the statistics of Amazon's company. It provided me with specific important numbers of Aman. It also provides me with statistics on customers of Amazon and Amazon Prime. Its helps me take into perspective what Amazon has done right.


Loeb, Walter. “Who Are The Top 10 U.S. Online Retailers?” Forbes, Forbes Magazine, 6 Aug. 

2018,www.forbes.com/sites/walterloeb/2018/08/06/who-are-the-top-10-u-s- online- reatlires /#6875fffba3401. 


This article gave me numbers on how much of the market Amazon exactly takes up. It compares Amazons large share of the market which takes up more than half to amazon competitors. Amazon competitors combined together does even take up Amazon's share. Amazon has completely taken over the online market.

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Swift Tide

The Rise of Amazon: The effect of Amazon on traditional retailers in America. 

Persuasive Essay

The rise of Amazon has been both negative and positive for retailers in America. The massive rising tide of Amazon has had a dual effect on the global economy. While some companies have been completely disrupted, others have benefitted. Small traditional brick and mortar stores physically have been disturbed; however, they have found ways to grow through selling online with Amazon. Amazon's growth has had a negative impact on traditional brick and mortar businesses, but a positive impact on many small business retailers. Amazon has a large amount of power over not only online business, but on more substantial traditional brick and mortar businesses as well. 

Amazon has taken on the role of selling food, electronics, books, and more, thus selling these items has had a significant impact on companies that strictly focus on and only sell these products. Amazon does it all. Amazon has hurt a large amount of business but also has worked on helping small businesses. When Amazon was originally started, they strictly sold books online. This resulted in bookstores independent of Amazon being the ones to struggle first (Lebowitz). Since Amazon began as a bookstore, its first victim was Barnes & Noble (Brumley).  "Bookstore chain Barnes & Noble and Joseph-Beth Booksellers were the first major victims of the rise of Amazon” (Brumley). As Brumley writes in his article “49 Compaines Amazon Could Destroy”, “Initially, Amazon.com was an online bookstore, and the advent of e-readers – then tablets – made ebooks commonplace, further displacing physical bookstores" (Brumley).  More recently, Amazon began working in the market of food/home-cooked meal delivery services like Blue Apron and Hello Fresh. Brumbley also discusses Amazon's success in pre packed meals and food delivery services: "No one disputes Amazon.com has mastered the art of delivering anything and everything that isn't perishable, but what about pre-packaged meals?” (Brumley). Brumley goes on to say, “Yep, it can do that too. Amazon got into the business in 2017, and it has continued to improve its game ever since" (Brumley). Amazon's partaking in food/home-cooked meals made the company a top competitor of other similar companies. Brumbly gives an example of the companies that Amazon originally threatened when entering this market: "its entry into the race is a direct threat to the likes of rival meal kit outfits Blue Apron (APRN), HelloFresh and Plated" (Brumley). A common new trend in our online market is food subscription boxes. The buyer can receive these boxes by subscribing to a meal plan through one of these companies. The customer can sign up to receive a home-cooked meal box once a week. The buyer also could sign up to receive a box of home-cooked meals every day of the week. In your box you will receive all the ingredients and directions needed to make a delightful home-cooked meal. Amazon, with Whole Foods has made a subscription box of its own, becoming competition for the other food services. Amazon being able to cover such a large number of markets is what has made them capable of hurting so many brands and retailers (Brumley).

Amazon itself has not been what actually hurts other businesses; what is hurting the different brands and businesses is the consumers who are purchasing from Amazon. Amazon has been so powerful and successful because it has converted consumers to a new way of shopping that caters to the buyers. People know that, overall, Amazon is the fastest and most efficient way to buy whatever it may be that shoppers need. The more convenient Amazon becomes, the more power the company gains. The reason why Amazon is able to be convenient for its buyers is because of its large size and market and fast delivery that other businesses and brands are unable to match (Dayton). Dayton states what Amazon's goal was when creating the company: "Our vision is to be Earth's most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online. This is Amazon's mission statement" (Dayton). Amazon has the vision to be a company and a place where people want to come when purchasing items from online.

Yes, Amazon has hurt other businesses; however, it has helped small companies because it is a marketplace where they can advertise their products. Mrinalini Agrees with me in her article that Amazon helps small businesses quoted here "Amazon's logistics infrastructure doesn't just help it ship to consumers all across the globe; it also aids another group of people: small businesses ”(Mrinalin). Mrinalin Krishna in her article goes on to explain, “Listing their products on Amazon helps them increase their customer reach, and the delivery essentially becomes Amazon's headache" (Mrinalin). Amazon has hurt many average brick and mortar businesses and brands along with more prominent companies; the smaller companies are able to resort to Amazon, which in the long-run has helped them grow. Amazon helps these small companies grow by becoming a source of advertisement and by making their products easier to buy. Ethan McAfee, is CEO of the company, Amplify, is a company which manages small brands that sell on Amazon's marketplace. McAfee explained an example of a bagpipe business. Before Amazon, if a person wanted a set of bagpipes, the instrument was very hard to find and purchase. Now with Amazon, there is an easy and direct way to buy a nice trusted pair of bagpipes. Amazon helps small and unknown companies thrive and sell their products at a high rate. Any brand or personal rep companies, no matter what they sell, can take their product and sell it on Amazon's marketplace, allowing the company's products to be more accessible to shoppers and consumers (McAfee).

Although Amazon has threatened traditional brick and mortar businesses, as Ethan McAfee agrees, Amazon benefits business today. In his opinion, Amazon has been very beneficial to other retailers. Mr. McAfee explained to me that Amazon the company has hurt business, but at the end of the day, it really is the consumers. Consumers have given Amazon the materials to grow and prosper. Consumers are the ones who find Amazon to be the most convenient; therefore, many use Amazon, giving it a large amount of power. Amazon grew its company to the size it is today by becoming one of the most convenient ways of shopping for average consumers. Consumers gave Amazon the power to grow where they are today (McAfee).

Amazon helps the consumer overall. Amazon pleases its customers, resulting in a large number of Amazon users. Amazon has many features for its company, causing it to be beneficial to the consumers. For example, fast delivery options are very pleasing to Amazon's customers. Amazon has rocket fast shipping options, which allow the customers to have their product in possession in the matter of a day. Each year Amazon grows the company becomes more convenient for the average consumers. Amazon continues to add branches to their company, and every branch they add is convenient and highly liked by consumers. For example, Amazon added electronics to their online store causing Best Buy to go under because Amazon was overall better. Amazon has had so much growth in such a short amount of time due to how they appeal to consumers. (Lebowitz) “In a mere decade, Amazon has become the world's most valuable company, exceeding a $1 trillion valuation, Business Insider reported” (Lebowitz). Amazon has perfected the ability to be very likable and convenient for average consumers.

Amazon is a company that has had a major effect on retailers in America. The result has proven to be both beneficial and destructive to other retailers in America. Amazon has been damaging to some companies because Amazon has expanded its company to many different areas. Amazon has become a top competitor to companies like Barnes and Noble, Best Buy, and more. (Brumley) Amazon is a very convenient company that appeals to consumers. Amazon is easy and efficient allowing them to be more liked. Amazon has not only caused other companies to struggle but has helped other companies.Amazon helps small businesses by giving them a platform to sell on. Amazon is a very large company with large amounts of power; the company started from nothing and has grown to one of the biggest companies in the world: "On the course of a single generation, Amazon has grown from a fledgling online bookseller to one of the most valuable and powerful corporations in modern history" (Statt). Amazon is loved by everyone because of the way they catered to their audience allowing them to be one of the most powerful companies in the world.

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Annotated Bibliography: Persuasive Essay

Brumley, James. "49 Companies Amazon Could Destroy (And 1 It Already Has)." 

Www.kiplinger.com, Kiplinger's Personal Finance, 23 Oct. 

www.kiplinger.com/slideshow/investing2018,/T052 -S001-49-companies-amazon-could-destroy-1-already-has/index.html.


This article shows me specific companies that have been hurt by Amazon. The companies which are mostly shown are the larger companies like Barnes and Noble and Best Buy. Barnes and Noble were one of the first major companies to be impacted.


 Dayton, Emily. "10 Fascinating Amazon Statistics Sellers Need To Know in 2019." 

The BigCommerce Blog, 18 May 2019,www.bigcommerce. com/ blog/ama

zon-statistics/.


This article gives me great insight into the specific statistics of Amazon. This article provides an exact number of how much Amazon has taken over. This article is beneficial to me because it can help me prove that Amazon has actually taken over. 


Eathn, McAfee. Personal Communication, December 19, 2019


Interviewed Ethan Mcafee, CEO of Amfiy. He gave me insight on his opinion of AMazon growth. He also gave me insight on if he thinks Amazon is mostly hurting or helping. I really enjoyed receiving an expert's opinion on Amazon. 


Krishna, Mrinalini. "The Amazon Effect on the U.S. Economy." Investopedia, 5 

Oct. 2019, www.investopedia.com/insights/amazon-effect-us-economy/.


This article goes into detail about how Amazon has hurt business but also brings to light how Amazon has been able to benefit other companies as well. Amazon has caused companies to struggle, but, at the same time, has helped companies and brands to thrive.


Lebowitz, Shana. "This Is the Mindset That Helped Jeff Bezos Expand Amazon from an Online

Bookstore to the World's Most Valuable 'Everything Store.'" Business Insider, 27 Dec. 2019, www.businessinsider.com/how-amazon -decided-to-

-decided-to-sell-books-2018-4.


This article provides me insight on the beginning of Amazon, and how it started as a bookstore. Amazon starting as a book store was the main reason why Barnes and Noble was hurt, which I write about in a portion of my paper. 


Statt, Nick. "How Amazon's Retail Revolution Is Changing the Way We Shop." The Verge,   

23 Oct. 2018, www.theverge.com /2018/10/23/ 17970466 /amazon-prime- shopping-behavior- streaming-alexa- minimum-wage. 


This article takes readers through Amazon's many advancements throughout the company's history. It shows the readers many new products and advancements that they have made to their company over the years. It also shows how these products and advancements have helped the company grow. 

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Lesson Plan

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Objectives

  1. Students will identify Jeff Bezos

  2. Students will analyze Jeff Bezos Early Life

  3. Students will  understand Jeff Bezos’ Steps to Having a Successful Company

  4. Students will understand Jeff Bezos’ mindset when becoming one of the most successful men in our world.

  1. Jeff Bezos made himself the richest man in the world by creating Amazon.

  • Ask if they know who the richest man in the world is. 

    • Jeff Bezos has a net worth of $110 billion.

    • How did Bezos do it ?

  1. Jeff Bezos Early Life; Source: (Jeff Bezos)

  • Jeff Bezos’ real name is Jeffrey Preston Bezos and he was born January 12, 1964, in Albuquerque, New Mexico, U.S.. 

  • When Jeff Bezos was in high school he developed the Dream Institute, a centre that promoted creative thinking in young students.

  • Jeff Bezos attended Princeton University and received a degree in electrical engineering and computer science. 

  • After graduating college he started working at the New York investment bank, D.E. Shaw & Co. in 1990 after working smaller jobs before. 

  • Bezos was then named senior vice president which was the firm’s youngest. 

  • Bezos was in charge of examining the investment possibilities of the Internet. 

    • This allowed Bezos to become very knowledgeable about the internet. 

  • In 1994 he quit D.E. Shaw and moved to Seattle, Washington, to start his virtual bookstore (Amazon).

  • Amazon sold its first book in July 1995.

  • (Jeff Bezos)

  1. Jeff Bezos’ Steps to Having a Successful Company; Source: Clifford, Catherine

  • Jeff Bezos believed that you must have a vision but it should not be your main focus and worry.

    • “Vision is absolutely important, but it doesn’t deserve your day-to-day attention,” Bezos said at the Yale Club in New York City in February, according to a transcript from Business Insider” (Clifford).

    • Bezos said, “but mostly your time should be spent on things that are happening today, this year, maybe in the next two or three years” (Clifford). 

  • Jeff Bezo states that you must get used to criticisms because you will always be criticized no matter what.

  • You must be efficient.

  • But also take time to be inefficient and let your mind wander. 

    • Efficiency is a large factor of Amazon’s DNA (Clifford). 

    • “But Bezos also places great importance on time spent being inefficient, especially when that means wandering off the beaten path to explore your curiosity”(Clifford). 

    • “It’s the inefficient time that often results in discovering the next big thing” (Clifford). 

  1. Jeff Bezos’ Opinion; Source: (Mautz)

  • Consistent thoughts Jeff Bezos believes to be a bad thing 

    • “He told the crowd that people who end up being right a lot often change their minds along the way in getting to that right answer. They do so because they get and accept new information, they revisit their understanding and knowledge, they find holes in their own proposed solutions, and stay open to new ideas and contradictions and to those who challenge their viewpoint”  (Mautz). 

      • Jeff Bezos belives that you must accept new information and not hold on to one idea.

    • “He said that those who are just plain wrong a lot (and not wrong on the path toward being right) are those who obsess over details that only support their point of view and that can't/don't/won't step out of the details to see the bigger picture from multiple angles” (Mautz). 

      • Holding on to one idea is what proves to make one wrong according to Bezos.

 Q: - How would you overall describe Jeff Bezos’ mindset from what I  just explained?

    F)  Jeff Bezos’ mindset when becoming one of the most successful men in our world.

  • From the research that I have gone through and read what I have taken away from Jeff Bezos’ mindset is that he believes in having an open mind. Jeff Bezos believes that you must be open to cristim, be open to new ideas and must take time to just let your mind wander. You cannot be extremely uptight .

  • This has helped Bezos achieve being the richest man in the world having a net worth of $110 billion. 

   G) Activity for the class. 

  • Ask the class how many are members of Amazon Prime

  • Ask on an Average how many buy from Amazon at least twice a month.

  • Trivia Game

    F) Conclusion

  • Jeff Bezos has created an open minded work ethic allowing you to be successful. If you listen to others and take each and every advice given to you into account you will most likely be able to create a successful company.

Materials 

  • Powerpoint 

  • Trivia Game

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How Amazon Captivated Their Millions of Coustmers

Linked below is a website I created to inform how Amazon was able to captivate their millions of customers.

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