21 of 22 people found the following review helpful
5.0 out of 5 stars Very good book. But will I remain an amazon customer?
I bought from amazon pretty much since its inception and became a loyal customer. That's why I enjoyed reading this book (on my kindle, of course) to reconstruct the company's history that I knew from a customer's perspective: the vast book offering at first, then the additions such as "search inside this book", customer reviews, amazon marketplace, the increasing...
Published 15 months ago by Dr Jekyll
3.0 out of 5 stars The rise and rise of Amazon.
Amazing story of a man's focus and determination to make a new technology thrive well beyond most business peoples scope of vision. Bezos attention to what matters to customers and the relentless pursuit of competitive edge should be a wake up call to all business's that trade not just online! it is a window on the future happening right now!
Published 11 months ago by Kevin Clarke
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21 of 22 people found the following review helpful
5.0 out of 5 stars Very good book. But will I remain an amazon customer?,
I bought from amazon pretty much since its inception and became a loyal customer. That's why I enjoyed reading this book (on my kindle, of course) to reconstruct the company's history that I knew from a customer's perspective: the vast book offering at first, then the additions such as "search inside this book", customer reviews, amazon marketplace, the increasing addition of categories such as music, the e-reader, etc. This book elaborates quite a lot about the behind-the-scene discussions and compromises the company made when launching these and other features and expanding into new markets (Amazon Web Services).
My only criticisms are that the book is a) very US-centric, and b) a bit weak when describing Bezos' initial motivations to launch an online bookstore. (It seems at first that Bezos' decision to tap into the book-market was primarily simply prudent as the market's distribution systems were of benefit for online retail; but increasingly, the reader learns that Bezos also has a true passion for books.)
I was frankly shocked about some internal policies at amazon: not only how they treat their own staff (something that got some press-coverage recently as well), but also how they systematically bully publishers and smaller retailers who don't necessarily want to abide to their terms. Though probably a libertarian by heart, I did not like how a multi-billion-turnover company seeks to systematically avoid paying taxes and manipulate local authorities/politicians.
In fact, reading this book made me research more ethical alternatives - the "ethical consumer" seems a trustworthy source - to avoid amazon whereever possible. So yes, in that way this book was very inspiring.
23 of 26 people found the following review helpful
5.0 out of 5 stars Fascinating, entertaining, incomplete,
This book is the story of Jeff Bezos and Amazon, from the perspective of a journalist who had plenty of access to employees and ex-employees as well as Jeff Bezos himself. The author makes clear both the faults and the successes of Bezos and Amazon, but limits the book's scope in some ways. While hinting at the devastation caused to traditional shopping (by Apple's iPod as well as Amazon's Kindle and other products), there isn't a lot of discussion here. Fair enough, as there will surely be other books about how Apple, Amazon and others have devastated local communities.
The author also says very little about Amazon's operations outside the USA, although I found it interesting that the reason Amazon haven't yet set up in Russia (the biggest economy still without an Amazon website) is because the infrastructure is inadequate just now. Perhaps that means South Korea will be next, though it doesn't get a mention.
Even within the main story of Amazon.com, a lot is omitted, one effect of which is the simplistic assertion that Amazon serves customers superbly while squeezing suppliers ruthlessly and expecting employees to devote themselves to Amazon without any regard for a work / family life balance. I have heard bits and pieces over the years about the way Amazon treat their employees, all of it reinforced by this book and then some. As for the author's distinction between customers and suppliers, that overlooks the fact that some customers have voluntarily contributed content to Amazon's website in the form of reviews, Listmanias, "So you'd like to ...." guides, tags, customer images and other stuff. The author occasionally mentions reviews in passing (listed in the index under customer reviews), but very few other software features are mentioned. Associates get a mention, as does Mechanical Turk (in its case, far more space than it deserves).
Customers who have contributed such content know that Amazon's attitude towards any problems or complaints about reviews, etc. is, for the most part, far less enthusiastic than their attitude regarding any problems or complaints about orders. Occasionally, a customer may get a fantastic response to a problem or complaint about reviews, etc., but this is a comparative rarity. What Amazon seem unable to understand is that some people who have felt badly treated because of problems with reviews or other content have stopped buying from Amazon altogether. These quitters obviously don't show up in Amazon's metrics that the author sometimes mentions, but they have made themselves heard on forums and blogs. I haven't quit, nor will I, but I am only one customer - and I am addicted to reviewing. Very few customers are as addicted as I am.
The author discusses third-party sellers originally via Auctions, then z Shops, then finally putting the option to buy from third parties in the main "Buy" box. Amazon's 1-Click option also gets discussed, but there was and is so much more to Amazon's software than this book covers.
The author is much more interested in Amazon Web Services and Amazon Kindle, both of which get plenty of coverage, along with Amazon's battles with Google, eBay and Apple. These are not things that especially concern me (yet), but I expected them to be discussed and they are interesting.
Amazon's quest to become an everything store carries dangers that the author does not mention. I remember that when Woolworth UK went bust, it was reported that the problem was that it lacked focus. In other words, it was a victim of the very diversity that had made it successful originally. Amazon's retailing diversity is already far greater than any brick-and-mortar retailer ever was, and it has also branched into other areas such as Amazon Web Services and Amazon Kindle, with the likelihood of more to come. The internet world is still young and none of us can predict the future, but it will be interesting.
My first impressions of Amazon were very positive, but over the years I have learned to be more critical. This book reinforces my misgivings. Despite Amazon's diverse product range, I prefer to buy locally where possible even if the price is a little higher (it's sometimes lower). The devastation caused by Apple, Amazon and others is clear for all to see, and while acknowledging that my reviews may contribute, I know that some other customers also use Amazon reviews but sometimes buy locally.
I have been hoping for many years that a customer would write a book about Amazon from the perspective of a reviewer or other contributor of content. So far, no such book has been written, but I have a feeling that 2014 may be that year.
So this book is fantastic in so many ways in describing Amazon's history from a business perspective, and also plenty of information about Jeff Bezos, even mentioning his e-mail address. I won't be using that again, although I used to use it occasionally a few years ago. When I last mentioned it on a forum, my post was replaced by the message "Deleted by Amazon".
Meanwhile, although this book misses out a lot, it is brilliant at those aspects that it covers. For anybody who is interested in the history of Amazon and Jeff Bezos, this book is well worth reading.
4.0 out of 5 stars Enjoyable and interesting, but doesn't really explain why Amazon was the online book firm that took off,
Grab an armful of business leadership books from your nearest bookshop and look through them for advice on how to treat staff. I doubt you'll find any of them encouraging business leaders to humiliate their colleagues in public more frequently.
Yet one of the most memorable stories in Brad Stone's account of how Jeff Bezos made such a success of Amazon is just such an encounter with a senior manager. They were giving answers that Bezos did not believe about the speed with which the phones were being answered by the customer service team. So in the middle of a meeting with senior managers, Bezos put a phone on loudspeaker, dialed Amazon's customer service number and started ostentatiously timing how long it took to be answered. He'd been told that calls were being answered in less than a minute, but the meeting had to sit in excruciating silence as the minutes ticked up before finally the phone was answered.
A devastatingly effective way of making a point, true. But how do you combine such a brutish attitude at times with an ability to recruit, retain and motivate the sort of brilliant staff you need, especially when Amazon wasn't paying high wages? The mystery is deepened by the grimly humorous collection of stories of other technology CEOs and their abrasive behaviour that Brad Stone presents in the book.
As with Steve Jobs, reading about Jeff Bezos and all his quirks in dealing with other human beings (not to mention Amazon's huge sums spent on failed takeovers) leaves you wondering for much of the time if you're reading an account of a brilliant success or a tragic failure. Clearly the path Amazon has taken shows he - like Jobs - is the former.
But whilst Walter Isaacson's biography of Jobs does answer the question of how Jobs and Apple ended up so successful despite his manner, in the case of Bezos and Amazon, Brad Stone leaves that question only partly answered. Early on in the book Amazon is but one amongst many online book selling startups. Stone explains well why traditional bookselling firms found it difficult to move into the online business, constrained as they were by their heavy investment in offline stores. Why, though, did Amazon triumph from all those different online startups? That Stone doesn't tell us.
The more successful Amazon gets, the better Stone's book does explain its gathering momentum, especially thanks to Bezos's insistence on using Amazon's scale to drive prices as low as possible. There are two types of company, Bezos says. Those that looks to charge as high a price as possible (think Apple) and those that look to charge as low a price as possible (think Amazon). Amazon's low prices may have kept its profits down, but they have hugely boosted its size and, while Apple's high margins have attracted big competitors eating into its market, Amazon's low margins have kept competitors out of the market, leaving more space for it to grow even further.
It's a shame though that the initial crucial breakthrough remains unexplained even by the end of an enjoyable book.
5.0 out of 5 stars How and why "Amazon may be the most beguiling company that ever existed, and it is just getting started",
Disclaimer: Several reviewers (including MacKenzie Bezos) have challenged the accuracy of some of Stone's material and I am unqualified to address any of those issues.
* * *
I thoroughly enjoyed reading this book by Brad Stone, one that combines a biography of Jeff Bezos with a biography of his greatest business success thus far, Amazon.com, a commercial empire that he founded in 1994, in his garage in Bellevue (WA), as an online bookstore. He selected the name because it was also the name of the largest river in the world. His BHAG then was to establish the largest "store" in the world, one that offered everything for sale. There seems to be no limit to the possibilities and opportunities that await Bezos' interest and attention. Based on the material that Brad Stone provides in this book, nothing that Bezos does in months and years to come will surprise me.
Based on what I have learned from the book, I would cherish his personal friendship and welcome the opportunity to work with and for him. However, given my current age and circumstances, neither will happen. That said, I admire his intelligence, energy, integrity, passion, and enthusiasm...all of which Amazon exemplifies throughout its operations. Bezos is a ferocious but principled competitor who boldly embraces new opportunities to nourish his insatiable curiosity, especially if they challenge him to make a best effort. I also think it odd that one of his defining characteristics is a honking laugh that can rattle windows.
Here are two of several especially significant developments that Stone examines. In Chapter 4, he discusses a breakfast meeting that Bezos had with Jim Sinegal, founder and then (2001) CEO of Costco. They met at the Starbucks inside the Bellevue (WA) Barnes & Noble.
Sinegal explained the Costco business model to Bezos: it was all about customer loyalty. "Though the selection of products in individual categories is limited, there are copious quantities of everything there - and it is all dirt cheap. Costco buys in bulk and marks up everything at a standard, across-the-the-board 14 percent, even when it could charge more. It doesn't advertise at all, and earns most of its gross profit from annual membership fees."
Sinegal observed, "The membership fee is a one-time pain, but it's reinforced every time customers walk in and see forty-seven-inch televisions that are two hundred dollars less than anyplace else. It reinforces the value of the concept. Customers know they will find really cheap stuff at Costco.
"My approach has always been that value trumps everything. The reason people are prepared to come to our strange places to shop is that we have value. We deliver on that value constantly. There are no annuities in this business."
The Monday after that meeting, Bezos met with his senior managers and announced that Amazon.com would immediately be cutting prices of books, music, and videos by 20 to 30 percent. Later during a quarterly conference call with analysts, he observed, "There are two kinds of retailers: there are those folks who work to figure how to charge more, and there are companies that work to figure out how to charge less, and we are going to be the second, full-stop."
* * *
The second development occurred later during an offsite in which Jim Collins participated. After several intensive discussions , Collins told Bezos and his colleagues, "You've got to decide what you're great at."
Stone then explains, "Drawing on Collins's concept of a fly wheel, or self-reinforcing loops, Bezos and his lieutenants sketched their own virtuous circle, which they believed powered their business. It went something like this: "Lower prices led to more customer visits. More customers increased the volume of sales and attracted more commission-paying third-party sellers to the site. That allowed Amazon to get more out of foxed costs like the fulfillment centers and the servers needed to run the website. This greater efficiency then enabled it to lower prices further. Feed any part of this flywheel, they reasoned, and it should accelerate the loop." Bezos remains convinced that this is Amazon.com's "secret sauce."
During one of my interviews of Collins, he explained it this way:
"Picture a huge, heavy fly wheel -- a massive metal disk mounted horizontally on an axle about 30 feet in diameter, 2 feet thick, and weighing about 5,000 pounds. Now imagine that your task is to get the flywheel rotating on the axle as fast and as long as possible...You're pushing no harder than during the first rotation, but the flywheel goes faster and faster. Each turn of the flywheel builds upon work done earlier, compounding your investment of effort."
It is worth noting, also, that compound interest is the "secret sauce" of Warren Buffet's success as an investor. One winter in Omaha when he was a child and sledding with friends, he observed a snowman that had fallen over and was rolling down the hill, becoming an increasingly larger snowball.
* * *
This may not be the definitive historical account of Jeff Bezos and Amazon but it will certainly do, for now.
4.0 out of 5 stars brutally honest,
Not exactly an authorised version of Amazon's history but all the better for it. If you're at all interested in how internet business works, what makes Amazon tick or to peek behind the curtains at the mind and personality of Jeff Bezos, this is the book.
Although dry in places and with a tendency, from time to time, to feel like nothing more than a list of events, overall this is a fascinating account of a remarkable journey. It's the story of how, as with Apple and, to an extent, Microsoft, a global company can be propelled to break the mould by the genius, strength and personality of one person. I wouldn't want to work there, though...
4.0 out of 5 stars A must read for people believing e-commerce is the future,
A must read for people believing e-commerce is the future. It's full of details about how Amazon started up , the encountered difficulties and challenges and how it reached today's size and success , driven by its founder and his strong believe in innovating the way to interact and taking care of consumers. Through the book comes up clearly even the singolar personality of Jeff Bezos and how he continuosly investigated new ideas and modus operandi with a clear and strong long term view in all the decisions taken, how differentiate his company from others and how to be recognised by the consumers as best in class in customer service.
3 of 4 people found the following review helpful
4.0 out of 5 stars Amazon is changing retail: this book shows how it works,
I don't fear Amazon, it's One Stop, a senior wholesale executive told me recently. But a flick through The Everything Store: Jeff Bezos and the Age of Amazon by Brad Stone might make him rethink.
I am sure that Jeff Bezos will write a better book about his business ideas 20 years from now and while Stone's book has been slated by some insiders, it is a great read. For anyone involved in distribution it is a must read.
Famously frugal with company funds, the Amazon attitude to burning up money buying companies that failed during the dot-com boom of the late 1990s will dazzle you.
Even more impressive is Bezos pursuit of the best brains from Walmart. He started his career in a New York hedge fund run by David E Shaw, whose mastery of maths and computing made him a billion dollars exploiting inefficiencies in the way Wall Street worked. DESCO had a policy of hiring the best brains and Bezos was a prodigy. He left this well paid job to set up an internet business that had a 70 per cent chance of failing and managed to get his parents to invest heavily in his idea.
Impressing smart people and winning cheap capital helped the fixated Bezos to scale Amazon quickly and he realised that scale was the only thing that mattered. He was terrified that Walmart would see what he was doing and price him out of the retail market.
Distribution problems nearly killed the business in its early Christmas seasons and Bezos invested heavily betting that established bricks-and-mortar businesses would not be nimble enough to respond. Bezos recruited Jimmy Wright, a former Walmart vice president, and told him to build a system that could handle anything. He spent $300 million building warehouses with "blinking lights on shelves to guide human workers to the right products and conveyor belts that ran into and out of massive machines, called Crisplants, that took products from the conveyor belts and sorted them into customer orders." These warehouses were to be called distribution centres, Wright decreed.
In the period after 2000 Bezos met Lee Scott, who ran Walmart, and Jim Sinegal, who founded Costco. Scott explained how it invested in everyday low pricing (EDLP) rather than advertising.
When he met Sinegal he learned about how membership clubs worked. "The membership is a onetime pain but it's reinforced every time customers walk in and see 47in televisions that are $200 less than anyplace else," Sinegal said.
Bezos changed how Amazon worked. But by 2002 the company realised its distribution was not working. Amazon hired Jeff Wilke to sort it out. Wright was the best in the world at building large scale retail distribution, which was great if you had to send out 5,000 rolls of toilet paper. But it could not work for small orders.
Wilke hired programmers to write algorithms that would tell his teams where and when to stock particular products and how to most efficiently combine various items in a single box. He "realised Amazon had a unique problem in its distribution arm: it was extremely difficult for the company to plan ahead from one shipment to the next. It didn't store or ship a predictable number or type of orders. A customer might order one book, a DVD, some tools - perhaps gift-wrapped, perhaps not - and that exact combination might never be repeated again." So he renamed the warehouses as fulfilment centres.
A year into his role, Wilke and Bezos asked a fundamental question: was distribution a commodity or a core competence? If it is a commodity, why invest in it? And when we grow, do we continue to do it on our own or do we outsource it?
Wilke's success in developing tightly controlled distribution "allowed the company to make specific promises to customers on when they could expect purchases to arrive" that would offer "Amazon innumerable advantages in the years ahead."
By 2007 Bezos was telling colleagues: "In order to be a $200 billion company, we've got to learn to how to sell clothes and food." Will this happen? Brad Stone, who has covered Amazon for US news outlets for most of its 20 years, says the answer is yes.
So should wholesalers be afraid? Perhaps. Reading this book will help you make your mind up. There is a lot of fantastic detail relevant to how you do business today...and how you may have to do business tomorrow.
For more see, [...]
5 of 6 people found the following review helpful
5.0 out of 5 stars Really well-written story,
Fantastic read and great insights into Bezos' management philosophy and style. Some really cool personal stories about Bezos as well.
5.0 out of 5 stars The not-quite everything store,
This review is from: The Everything Store: Jeff Bezos and the Age of Amazon (Paperback)
I really enjoyed reading this book, and the amount of detail provided by Brad Stone was exceptional. Anyone would agree that the management style of Jeff Bezos is controversial, but one has to appreciate the enormous risk that he has undertaken to create a real Amazon of a company. As the product lines have been extended year after year, I was left with a worrying feeling that the addition of perishable supermarket lines to make it an "everything store" would be a bridge too far and the supermarket giants may show him.
5.0 out of 5 stars The first chapter,
I have to say that this book was truly insightful. Not only does it describe the rise of the monolith that is Amazon, but it also tries to portray the effort to get to where it is now. A wonderfully crafted book that delves into the murky depths of both the company and its founder, showing that whilst there is ruthlessness in abundance, there is also passion, ambition and sheer joy at delivering what people want and beating expectations time and again.
A great read and a must for anyone.
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