Amazon.com

CONTENTS

WHAT’S AMAZON?INTRODUCTIONHISTORY & FACTSHOW DID THEY MANAGE TO GROW?USER EXPERIENCE- WEBSITE NAVIGATION

• Multinational electronic commerce company• Headquarters in Seattle and Luxembourg• The world’s largest Online retailer

WHAT’S AMAZON?

• Founded by Jeff Bezos in 1994 and went online in 1995

• Named after the Amazon River: a place that is “exotic and different”

– it was almost called Cadabra as in Abracadabra, until someone asked, is the name

cadaver?

• Started as an Online Bookstore that later diversified (Cd’s, DVD’s,

software, etc.)

• The logo: evolved from a river to a smiling arrow (pointing A to Z) forming

a smile, saying "we're happy to deliver anything, anywhere.”

• It went from a tiny startup operating on second-hand computers in a

garage to a global company with 12 major retail websites.

• Ranked Global Website #7 – Sites linking in 1,043,079 (www.alexa.com)

HISTORY & FACTS

• 50% of Amazon revenues lie outside the U.S. whereas WalMart, Sears, Target, etc. have struggled in foreign markets

• Half of all Amazon book sales are digital, creating growth where most competitors have stagnated and declined

• Amazon developed game-changing technology and capabilities allowing it to do what customers wanted, but other retailers were unwilling to create

HOW DID THEY MANAGE TO GROW?

USER EXPERIENCE – WEBSITE NAVIGATION

• Product search and online purchasing.• Placement of navigation elements critical.• Sharp colors, gradients and subtle 3-D effects make

vital user tools stand – out.• The user is able to quickly find and purchase products.• The seller is able to quickly process the online

purchases.• Challenges of online purchasing – no feel and inspection

product. • Detailed close up pictures of the product from all angles.• Use "look inside” and “Get a sample” features for books

USER EXPERIENCE – ¨WHY SHOP WITH US¨ REMINDERS

• Reminders about why the user should purchase on Amazon and not elsewhere.

• Listings of MSRP (manufacturers suggested retail price and price comparisons)

• Strong sales incentives

• Jonathan J. Rubinstein– Independent Director

• Thomas O. Ryder– Lead Independent Director

• Tom A. Alberg– Independent Director

• Alain Monié– Independent Director

• Jamie S. Gorelick– Independent Director

• William Bing Gordon– Independent Director

• John Seely Brown– Independent Director

• Patricia Q. Stonesifer– Independent Director

• Shelley L. Reynolds– Chief Accounting Officer, VP &

Controller

Diego PiacentiniSenior VP-International Consumer Ty RogersHead-Public RelationsSean BoyleVice President-Investor RelationsDavid A. ZapolskySecretary, Vice President & General H. Brian ValentineSenior Vice President-Ecommerce PlatformJeff M. BlackburnSenior Vice President-Business DevelopmentSteven R. KesselSenior Vice PresidentJeffrey A. WilkeSenior Vice President-Consumer BusinessKathy SheehanAssociate General CounselCraig BermanVice President

Jeffrey P. BezosChairman, President & Chief Executive OfficerMarc A. OnettoSenior Vice President-Worldwide OperationsThomas J. SzkutakChief Financial Officer & Senior Vice PresidentMary Kay BowmanDirector-Product ManagementRobert EldridgeVice President-International Retail FinanceSebastian J. GunninghamSenior Vice President-Seller ServicesFrederick C. KigaDirector-Tax PolicyEzequiel SzafirVice President-European OperationsMichael PaullVP-Content Acquisition & Business Development

KEY PEOPLE & BOARD OF DIRECTORS

KEY LEARNING POINTS

The availability of products makes a big difference…

the sky is the limit!!!

Amazon has invested heavily in trends even when its

investments were in areas where Amazon had no history,

capability or expertise.

Amazon’s Ubiquity: Excellent online positioning for

product searches

• Adapt to the trends of the market (print to digital)

• Listen to your customers needs, and care for what they want

KEY LEARNING POINTS

• They Adhere to the “long tail” selling model = selling a large number of unique items

• Personalize your service and provide info to the customer

KEY LEARNING POINTS

• The shopping experience needs to keep up with new Technologies & Trends.

• In website design a first concern is not being cool, but fulfillment of its purpose, which is… maximum sales.

• Amazon’s willingness to go beyond the conventional wisdom of investing in its “core” has been critical to its success.

• The quality of the operations and logistics high standards are within the level of the online user experience making the Amazon brand stronger.

CONCLUSIONS

“A big piece of the story we tell ourselves about who we are, is that we are willing to invent”

Jeff Bezos: Comments on a shareholder meeting June, 2011

Thank you for shopping with us!

Q & A

Sneak peak at the inside of Amazon.com

• They may account for a third of all U.S. E-commerce sales, boast over 33,000 employees around the world and own such big names as IMDB, Zappos.com

• Call the service desk you might get the CEO

• 3 Private brands (Pike Street, Pinzon, Strathwood)

• A 3 Billion dollars order?

Fun Facts

Social Media Integration

• IPO May 15, 1997

• Amazon expected profits in 4 to 5 years from launch

• Survived the dotcom crisis but was hit hard from a high of $100 to a low of $6

• First profits Q4-2001, they didn’t see full year profits until 2003

• Revenues - $19.17B (2010)

Financial Performance