Amazon first entered the media industry as a major online retailer in the late ‘90s. The company began by selling CDs and DVDs to a burgeoning market of online shoppers who began turning to the internet for music and movies, before the technical feasibility of streaming and the advent of the iPod. But it wasn’t until 2005, with the initial launch of Amazon Prime, that the company began laying the ground work for a future digital media ecosystem that integrated directly into its online store.
Amazon now has more than 100 private label brands, some without the name Amazon even remotely attached, for product categories like clothing, dog food, and furniture. Yet AmazonBasics, and the Amazon Essentials clothing brand, remain the company’s biggest weapons in its war against offline retail. Just as Walmart, Target, and other stores launched their own private label brands for virtually every product imaginable, the company has done the same. (In 2015, it also launched an official Etsy competitor in the form of Amazon Homemade.)
Since its founding, the company has attracted criticism and controversy from multiple sources over its actions. These include: supplying law enforcement with facial recognition surveillance tools; forming cloud computing partnerships with the CIA; luring customers away from the site's brick and mortar competitors; placing a low priority on warehouse conditions for workers; participating in anti-unionization efforts; remotely deleting content purchased by Amazon Kindle users; taking public subsidies; claiming that its 1-Click technology can be patented; engaging in anti-competitive actions and price discrimination; and reclassifying LGBT books as adult content. Criticism has also concerned various decisions over whether to censor or publish content such as the WikiLeaks website, works containing libel and material facilitating dogfight, cockfight, or pedophile activities. In December 2011, Amazon faced a backlash from small businesses for running a one-day deal to promote its new Price Check app. Shoppers who used the app to check prices in a brick-and-mortar store were offered a 5% discount to purchase the same item from Amazon. Companies like Groupon, eBay and Taap.it countered Amazon's promotion by offering $10 off from their products. The company has also faced accusations of putting undue pressure on suppliers to maintain and extend its profitability. One effort to squeeze the most vulnerable book publishers was known within the company as the Gazelle Project, after Bezos suggested, according to Brad Stone, "that Amazon should approach these small publishers the way a cheetah would pursue a sickly gazelle." In July 2014, the Federal Trade Commission launched a lawsuit against the company alleging it was promoting in-app purchases to children, which were being transacted without parental consent.
The company was founded as a result of what Jeff Bezos called his "regret minimization framework," which described his efforts to fend off any regrets for not participating sooner in the Internet business boom during that time. In 1994, Bezos left his employment as vice-president of D. E. Shaw & Co., a Wall Street firm, and moved to Seattle, Washington, where he began to work on a business plan for what would become Amazon.com.
The difference is that Amazon has data to prove what’s popular and easy to sell, and free shipping to get people to buy it online instead of in the store. (That’s gotten the attention of the European Commission, which is looking into whether Amazon is harming competition by using data from its sellers to develop its own products.) You can now buy Amazon-produced electric kettles, toasters, office chairs, knife sets, neoprene dumbbells, comforters, suitcases — name a product you’d find in a Walmart, and it’s probably already made and sold under the AmazonBasics name. Earlier this month, the company started selling its own mattress, striking fear in the direct-to-consumer mattress startup market dominated by Casper and Tuft & Needle.
Shelfari was a social cataloging website for books. Shelfari users built virtual bookshelves of the titles which they owned or had read and they could rate, review, tag and discuss their books. Users could also create groups that other members could join, create discussions and talk about books, or other topics. Recommendations could be sent to friends on the site for what books to read. Amazon bought the company in August 2008. Shelfari continued to function as an independent book social network within the Amazon until January 2016, when Amazon announced that it would be merging Shelfari with Goodreads and closing down Shelfari.
Amazon allows users to submit reviews to the web page of each product. Reviewers must rate the product on a rating scale from one to five stars. Amazon provides a badging option for reviewers which indicate the real name of the reviewer (based on confirmation of a credit card account) or which indicate that the reviewer is one of the top reviewers by popularity. Customers may comment or vote on the reviews, indicating whether they found a review helpful to them. If a review is given enough "helpful" hits, it appears on the front page of the product. In 2010, Amazon was reported as being the largest single source of Internet consumer reviews.
Yet despite having a hand in so many different industries, consumers largely trust Amazon with everything from their personal information and buying habits to the literal conversations they have in their own homes. According to a study The Verge conducted in partnership with consulting firm Reticle Research last year, Amazon is the most-liked and trusted technology brand by a wide margin. One likely explanation there is that the company has a strong relationship with its customers, thanks in part to its zealous commitment to low prices and a seemingly never-ending quest to make modern life more convenient.
AWS started way back in 2000 as a way to help other retailers manage e-commerce operations, but it soon expanded into much more when key project members managed to convince Bezos that improving and evolving Amazon’s own infrastructure may hold the key to a new business model. In 2006, the product as we know it today launched into public availability and proved to be a pioneer for the entire cloud computing industry, offering cloud storage, hosting, and a suite of other tools for managing entire digital infrastructures in remote data centers. The division now pulls in roughly $6 billion every quarter and continues to grow at breakneck pace. It earned $17.5 billion in revenue in all of 2017 and regularly outperforms the company’s entire North American retail division in terms of profit.
In early 2018, President Donald Trump repeatedly criticized Amazon's use of the United States Postal Service and pricing of its deliveries, stating, "I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy," Trump tweeted. "Amazon should pay these costs (plus) and not have them bourne [sic] by the American Taxpayer." Amazon's shares fell by 6 percent as a result of Trump's comments. Shepard Smith of Fox News disputed Trump's claims and pointed to evidence that the USPS was offering below market prices to all customers with no advantage to Amazon. However, analyst Tom Forte pointed to the fact that Amazon's payments to the USPS are not public and that their contract has a reputation for being "a sweetheart deal".
If your new dress doesn't fit right or a gadget arrives broken, Amazon accepts returns on most sales within 30 days of delivery. In general, third-party sellers offer the same policy, although you'll usually have to pay for return shipping to the seller unless the seller advertises free returns, whereas Amazon often provides a prepaid shipping label for its own returns. The cost of the return may be subtracted from the refund if the item was returned for some other reason than Amazon's mistake.
Amazon lobbies the United States federal government and state governments on issues such as the enforcement of sales taxes on online sales, transportation safety, privacy and data protection and intellectual property. According to regulatory filings, Amazon.com focuses its lobbying on the United States Congress, the Federal Communications Commission and the Federal Reserve. Amazon.com spent roughly $3.5 million, $5 million and $9.5 million on lobbying, in 2013, 2014 and 2015, respectively.
Fitness guru Billy Blanks entered American homes across the country when he introduced his Tae Bo workout. The creator of the martial art known as Tae Bo, Blanks sought to teach people how they could get more physically fit, be more confident, and do so from the comfort of their own home. The Tae Bo workout has revolutionized the way people get their exercise and provided millions of people access to an easy and effective martial art that they can learn through instructional videos.