What does it take to have a successful e-commerce business?
I think looking at how Jeff Bezos has succeeded is a good start. I just finished the biography by Brad Stone.
It’s not all sunshine and rainbows, the culture at Amazon under Jeff sounded toxic. Often burning out employees.
What about the other stuff…
Jeff looks for opportunities through data. He saw how fast the internet was growing and wanted “in”.
Jeff’s vision was for an “everything store”, he just needed to start with something. He used data to help him decide to start with Books.
Jeff had a grand vision and went after it in an unrelenting way. Of course he has had plenty of setbacks, years of not turning a profit and surviving the dotcom bubble.
He encourages innovation and “failing fast”.
Finally, Jeff is customer obsessed. Leaving an empty seat for the customer in meeting rooms as a constant reminder of their needs and say in the product development.
Here were my key takeaways:
1. Big Dreams, Bigger Plans
Bezos saw Amazon as more than just a bookstore – he wanted it to sell everything.
His big vision, customer focus, and bold risks fueled its rapid success.
2. Customer Obsession
Amazon’s success is rooted in prioritizing customers above all else – offering lower prices, faster delivery, and exceptional convenience.
Bezos believed in delighting customers and building loyalty, even at the expense of short-term profits.
3. Relentless Innovation: Try, Fail, Try Again
Amazon transformed industries with innovations like 1-Click ordering, Kindle, and Amazon Web Services (AWS).
Bezos encouraged experimentation and embraced failure, seeing it as the price of progress.
4. The “Flywheel Effect”
Bezos used the “flywheel” idea to grow Amazon. Better deals brought more customers. More customers brought more sellers.
More sellers brought lower prices. The cycle kept spinning.
5. Frugality and Efficiency
Bezos fostered a culture of frugality, operating with minimal resources to achieve maximum impact.
Amazon’s “door desk” symbolizes its ethos of cutting costs to pass savings on to customers.
6. Decisions Based on Data
Bezos didn’t trust guesses. He wanted numbers to guide every choice.
Data helped Amazon move faster and smarter than its rivals.
7. Tough on Competition
Amazon played hardball. It cut prices to beat rivals and bought out competitors when needed.
Bezos has an intense desire to dominate every market it enters.
8. Work Hard, Push Limits
Amazon’s culture is intense. Bezos demanded high standards and big results.
This drove innovation but also put pressure on employees often at their personal cost.
9. Building More Than a Store
Amazon became more than a place to shop.
It’s a tech giant, a cloud provider, and a leader in AI.
Bezos built a system where all parts of the company worked together.
Talk soon,
Lloyd
PS – Own an online store? We’ve helped top eCommerce brands – maybe we can help you too. Let’s chat.
