The Secret Behind Amazon’s Success!

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The Secret Behind Amazon’s Success!

A look at how Amazon conducted the most successful demographic study in world history without anyone even knowing it!

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Video Transcript:

The Secret Behind Amazon’s Success!

So I was doing some research and I want to talk about what I believe is the greatest demographic study done in world history. And I believe it was done by Amazon. And one thing that I had noticed in doing some research is that years and years and years ago Amazon was like a laughing stock of the world. They went years without turning a profit, yet for some reason their founder Jeff Bezos was Time Magazine’s Man of the Year twice. It all often made me wonder like how does a broke person who literally didn’t make a dollar become Time Magazine’s Man of the Year? Well they knew something that a lot of people didn’t, ironically, at least back then. And one thing is that when Jeff Bezos started Amazon, he started it off selling books. An online bookstore. A lot of people have never asked the question “why?”. So I wanted to figure that out and what I learned is that Amazon actually started selling books, one as a way to help sustain their demographic study. But Jeff Bezos and his team at Amazon figured that the people that were sophisticated enough to buy and actually read books and buy them online, are the type of people that would make excellent customers and have the disposable income and the wherewithal in the intelligence to be great customers of the business that he had the vision for that we all know as Amazon today. And what’s really interesting so is this, he built that, he paid attention to the areas in the demographics where these books were selling. 

Wouldn’t you believe that those are the areas, the ones where the most books were bought from Amazon online, while they were doing commerce and well attempting to make money. They didn’t turn a profit for a while but as you see now it was probably a smart move. That’s where they built their warehouses and their fulfillment centers. So everywhere where you see a Amazon warehouse is a place that was initially discovered and derived because of its proximity to people that were ordering books online. Educated people that read, that were sophisticated enough to start ordering these online, they knew that they wanted to be able to acquire them at a discount price, so they used that demographics to map out one of the most sophisticated, if not the most sophisticated distribution system all over the place. I mean what’s Amazon really known for? The best and fastest free shipping on the planet. And they were able to put that together and find the demographics and the regions that they needed to put those warehouses, specifically by selling books. And in my opinion as I was learning this, my mind was just capsized for a minute because…Wow,  all the different types of demographics done but that was one to where they made an effort to sustain it by selling the books and they really identified the best places to build them. 

Now I was actually driving out to a friend of mine’s ranch in Kissimmee, Florida and in Davenport on the way there, there’s a huge Amazon Fulfillment Center right outside of Orlando, Florida and in close proximity to Tampa, good demographics. Guess what I saw them building? And I think it’s now finished,  a walmart.com fulfillment center right next to it. So even Walmart and a lot of the other world’s top companies that do fulfillment are now trying to piggyback on Amazon’s demographics that they did. It just goes to show that the things that amazon has in place, they’ve always been a long-term thinker to put together that type of long-term demographic s study without turning a profit, to figure out a way to at least make it semi sustainable by selling the books in the process and using that to create it, that’s why I think Amazon is created not only the greatest demographic study of all time but they’ve also shown themselves to be one of the best companies on the planet at long-term goals and vision setting.