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Hey I am on Medial • 2m
How Amazon Quietly Built the World's Most Dominant Empire — Piece by Piece Behind the scenes, it’s a strategic empire built layer by layer. Bezos’s core idea: “Work backwards from the customer” Started with books because they were easy to ship, had millions of SKUs, and offered price transparency. Used books to build early logistics, customer trust, and repeat purchases. Gradually added categories: music → electronics → toys → everything. Introduced Amazon Prime in 2005 at $79/year — started with free 2-day shipping. Prime later added Video, Music, Reading, Gaming — made users stay longer and spend more. Prime users spend 2x more than non-Prime users. Built infrastructure (warehouses, delivery) for itself, then opened it up to others: Fulfillment by Amazon (FBA) let sellers use their system. AWS started as internal infra — became a $100B+ cloud business. Bought what it couldn’t build: Zappos → customer service culture Twitch → future of livestreaming Whole Foods → physical retail presence PillPack → healthcare entry Kiva Systems → warehouse automation Let third-party sellers dominate the platform while taking a cut from each sale. Today, over 60% of retail sales on Amazon are from 3rd-party sellers. Pushed into high-margin areas: AWS = most profitable arm Ads = $40B+ business Prime = recurring revenue engine Stayed patient: reinvested profits, undercut competition, ignored quarterly noise. Built a massive moat: delivery speed, product selection, customer loyalty, infra scale. Used the flywheel effect: more customers → more sellers → better selection → better experience → more customers. Understand this and you’ll see how systems scale
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