Monday, October 28, 2013

Excerpt from Chapter 9 of "The Everything Store: Jeff Bezos and the age of Amazon"

Excerpts from "The Everything Store: Jeff Bezos and the age of Amazon" by Brad Stone

Chapter 9 - Liftoff!

At that point, they thought Amazon was some kind of nonprofit scam.” Inside Amazon, the pain endured over the previous seven years was paying off. Prime, the two-day shipping service, was an engine spinning the company’s flywheel ever faster. Amazon customers who joined Prime doubled, on average, their spending on the site, according to a person familiar with the company’s internal finances at the time. A Prime member was like a shopper who walked into a Costco warehouse for a case of beer and walked out with the beer plus an armful of DVDs, a nine-pound smoked ham, and a flat-screen television. 

Prime members bought more products across more categories, which in turn convinced sellers to let Amazon stock their merchandise and ship their orders from its fulfillment centers, since that meant their products qualified for Prime two-day shipping.

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