History

Founding and Early Years (1994–1999)

Amazon was founded on July 5, 1994, by Jeff Bezos in Bellevue, Washington. Initially named Cadabra, the company began as an online bookstore operating from Bezos's garage. The name was later changed to Amazon, inspired by the vastness of the Amazon River. The website launched for public sales on July 16, 1995, offering a wide selection of books. In 1997, Amazon went public with an initial public offering (IPO) at $18 per share, raising $54 million. By 1998, the company expanded its product offerings to include music and videos and began international operations by acquiring online booksellers in the United Kingdom and Germany. (history.com)

Diversification and Growth (2000–2009)

In 2000, Amazon introduced the Marketplace platform, allowing third-party sellers to list products alongside Amazon's own offerings. This move significantly expanded the range of products available on the site. The launch of Amazon Web Services (AWS) in 2006 marked the company's entry into cloud computing, providing scalable computing resources to businesses and developers. AWS has since become a major revenue stream for Amazon. In 2007, the company unveiled the Kindle e-reader, revolutionizing the digital book market. (en.wikipedia.org)

Expansion and Acquisitions (2010–2019)

Amazon continued its growth through strategic acquisitions and diversification. In 2014, the company acquired Twitch, a live-streaming platform for gamers, expanding its presence in digital entertainment. The purchase of Whole Foods Market in 2017 for $13.7 billion marked Amazon's significant entry into the brick-and-mortar retail space. During this period, Amazon also invested heavily in logistics and automation, enhancing its fulfillment capabilities. (en.wikipedia.org)

Recent Developments (2020–2025)

In 2021, Jeff Bezos stepped down as CEO, transitioning to the role of executive chairman, with Andy Jassy, former head of AWS, succeeding him. Amazon has increasingly focused on artificial intelligence (AI) and automation. In 2025, the company announced plans to invest $100 billion into AI initiatives, primarily focusing on AWS for data infrastructure and software tools. This investment aims to enhance operational efficiency and customer service through AI technologies. (ft.com)

Business Operations

E-commerce

Amazon's e-commerce platform offers a vast array of products, including books, electronics, apparel, and groceries. The company operates country-specific websites, such as amazon.com for the United States and amazon.co.uk for the United Kingdom, with some offering international shipping. The introduction of Amazon Prime in 2005, a subscription service providing free two-day shipping and other benefits, has been instrumental in customer retention and increased sales. (en.wikipedia.org)

Cloud Computing

Amazon Web Services (AWS), launched in 2006, provides cloud computing services, including storage, computing power, and databases, to businesses and individuals. AWS has become a significant revenue generator for Amazon, maintaining a substantial global market share in the cloud infrastructure space. (techradar.com)

Artificial Intelligence and Automation

Amazon has heavily invested in AI and automation to improve efficiency and reduce costs. The company plans a $25 billion investment in a new generation of robotics-led warehouses, anticipating substantial efficiencies and faster delivery times. Additionally, Amazon has developed over 1,000 generative AI services, with plans for many more, indicating a strong commitment to AI-driven innovation. (ft.com)

Financial Performance

As of 2024, Amazon reported significant financial growth, with revenues reaching $469.82 billion, an increase of 21.7% over the previous fiscal cycle. The company's market capitalization surpassed $1 trillion in early 2020, reflecting investor confidence in its diversified business model and growth prospects. (en.wikipedia.org)

Corporate Structure

Amazon operates through various subsidiaries, including:

• –Amazon Web Services (AWS): Provides cloud computing services.
• –Whole Foods Market: A chain of organic and natural foods supermarkets.
• –Twitch: A live-streaming platform primarily for gamers.
• –Amazon Robotics: Focuses on automating warehouse operations.
• –Ring: Specializes in home security products.

These subsidiaries contribute to Amazon's diverse portfolio and its ability to innovate across different sectors. (en.wikipedia.org)

Challenges and Criticisms

Amazon has faced criticism regarding its business practices, including concerns over worker conditions, anti-competitive behavior, and environmental impact. The company has been scrutinized for its treatment of warehouse employees and its impact on small businesses and local economies. In response, Amazon has implemented various initiatives aimed at improving working conditions and sustainability efforts. (en.wikipedia.org)