How did Jeff Bezos change $ 10,000 from his parents to $ 1.5 trillion

Hey, Arjun here.

Before Amazon became a “everything store” worth $ 1.5 trillion, it was only Jeff Bezos and some employees of book delivery from a garage in Seattle.

Hack 2 minutes: start narrow, then expand

In 1994, Jeff Bezos worked at De Shaw, a Wall Street Protection Fund, when he found a surprising statistics: the internet grew on 2,300% per year.

Bezos immediately recognizes the commercial potential of this growth. He made a list of 20 products that can be sold online and systematically narrowed it into the first perfect books for his vision.

Why Book? Something ends 3 million Books are printed, far more than any physical bookstore that can be used (the biggest brought -brought 150,000 title). Online stores can offer almost unlimited choices.

Convinced by that opportunity, Bezos came out of a high -paid job, driving throughout the country with his wife Mackenzie, And set up a shop in the garage in Bellevue, Washington. He accepted about $ 300,000 In seed funding, especially from his parents, which invested most of their life savings.

On July 16, 1995, Amazon.com was launched as “Earth’s biggest bookstore.”

The early days are very intense. Bezos and his small team will package books on the floor, kneel on the packaging mat to send orders, and personally direct the package to the post office. When the bell sounds in the office that shows sales, everyone will gather to see if they know customers.

Important moments in the initial evolution of Amazon:

1. First pivot: In 1998, Amazon developed beyond books to CDs and DVDs

2. Steps that raise eyebrows: In 1999, Amazon was extended to toys and electronics, causing analysts to question the strategy

3. A brave promise: Bezos insist Amazon will eventually sell “everything

4. The principle of patience: Bezos told shareholders that he prioritized long -term market leadership rather than short -term profitables

5. Market evolution: In 2000, Amazon was launched Marketallows third party sellers to offer products with Amazon inventors

Bezos has a clear philosophy that guides this decision: “Get big ones.” He believes the scale is very important for success in e-commerce and pursuing endless growth, often by sacrificing profits.

The results spoke alone. In 2021, Amazon has become the largest online retailer in the world, the largest internet company based on income, and the second largest private employer in the United States.

How to apply this to your business:

1. Start narrow, dominating, then expand: Amazon mastered the book before moving to another category

2. Think long -term: Famous bezos operating in A “Horizon 7 years” When other people think a quarter

3. Prioritize customer experience: Amazon’s beginning obsessively focused on customers, even by sacrificing profits

4. Embrace the reinvention continuously: Like the word bezos, “It’s always 1 day on Amazon

5. Find a platform, not just a product: The biggest value comes when Amazon becomes a platform for other sellers

What narrow markets can you dominate before developing?

Are you playing a long game or looking for a quick victory?

See you next week.

Come on doola ⚡

Arjun

PS Building Amazon FBA Business?

Doola helps Amazon sellers form the right business entities (usually LLC), maintain compliance, and save tax. We have helped thousands of FBA sellers create the right foundation for their e-commerce kingdom.