Amazon.com

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Amazon.com, Inc.

Type	Public (NASDAQ: AMZN)
Founded	1994
Founder	Jeffrey P. Bezos
Headquarters	Seattle, Washington, United States
Area served	Worldwide
Key people	Jeffrey P. Bezos (Chairman), (CEO) & (President)
Industry	Retail
Products	Amazon.com A9.com Alexa Internet IMDb Amazon Kindle
Revenue	▲ US$ 14.8350 billion (2007)
Operating income	▲ US$ 655 million (2007)
Net income	▲ US$ 476 million (2007)
Employees	17,000 (2008)[1]
Slogan	"...and you're done"
Website	Amazon.com
Type of site	e-commerce
Advertising	web banners and videos
Available in	English, Chinese, French, German & Japanese
Launched	1995

Amazon.com, Inc. (NASDAQ: AMZN) is an American electronic commerce (e-commerce) company in Seattle, Washington. It is America's largest online retailer, with nearly three times the internet sales revenue of runner up Staples, Inc.^[2]

Jeff Bezos founded Amazon.com, Inc. in 1994, and launched it online in 1995. Amazon.com started as an on-line bookstore, but soon diversified to product lines of VHS, DVD, music CDs, MP3 format, computer software, video games, electronics, apparel, furniture, food, toys, etc. Amazon has established separate websites in Canada, the United Kingdom, Germany, France, China and Japan. It also provides global shipping to certain countries for some of its products.

Contents 1 History and business model 1.1 Merchant partnerships 2 Locations 2.1 Headquarters 2.2 Software development centers 2.3 Fulfillment and warehousing 3 Product lines 3.1 Review and recommendation feature 4 Website 5 Acquisitions and spinoffs 6 Products and services 7 Controversies 8 Entrepreneurship by former employees 9 See also 10 References 11 Further reading 12 External links

[edit] History and business model

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Amazon was founded in 1994, spurred by what Bezos called "regret minimization framework", his effort to fend off regret for not staking a claim in the Internet gold rush.^[3] While company lore says Bezos wrote the business plan while he and his wife drove from New York to Seattle,^[4] that account appears to be apocryphal.^[5]

The company began as an online bookstore named "Cadabra.com", a name quickly abandoned for sounding like "cadaver";^[5] while the largest brick-and-mortar bookstores and mail-order catalogs for books might offer 200,000 titles, an on-line bookstore could offer more. Bezos renamed the company "Amazon" after the world's biggest river. Since 2000, Amazon's logotype is an arrow leading from A to Z, representing customer satisfaction (as it forms a smile) and the goal to have every product in the alphabet.^[6]

In 1994, the company incorporated in the state of Washington, beginning service in July 1995, and was reincorporated in 1996 in Delaware. The first book Amazon.com sold was Douglas Hofstadter's Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought.^[7] Amazon.com issued its initial public offering of stock on May 15, 1997, trading under the NASDAQ stock exchange symbol AMZN, at an IPO price of US$18.00 per share (U.S. $1.50 after three stock splits in the late 1990s).

Amazon's initial business plan was unusual: the company did not expect a profit for four to five years; the strategy was effective. Amazon grew steadily in the late 1990s while other Internet companies grew blindingly fast. Amazon's "slow" growth provoked stockholder complaints: that the company was not reaching profitability fast enough. When the dot-com bubble burst, and many e-companies went out of business, Amazon persevered, and, finally, turned its first profit in the fourth quarter of 2001: U.S. $5 million, just 1¢ per share, on revenues of more than U.S. $1 billion, but the profit was symbolically important.

The company remains profitable: 2003 net income was U.S.$35.3 million, U.S.$588.50 million in 2004, U.S.$359 million in 2005, and U.S.$190 million in 2006 (including a U.S.$662 million charge for R&D in 2006), nevertheless, the firm's cumulative profits remain negative. As of September 2007, the accumulated deficit stood at U.S.$1.58 billion. Revenues increased thanks to product diversification and an international presence: US$3.9 billion in 2002, U.S.$5.3 billion in 2003, U.S.$6.9 billion in 2004, U.S.$8.5 billion in 2005, and U.S.$10.7 billion in 2006. On November 21, 2005, Amazon entered the S&P 500 index, replacing AT&T after it merged with SBC Communications. On December 31, 2008, Amazon entered the S&P 100 index, replacing Merrill Lynch after it was taken over by Bank of America.

In 1999, Time magazine named Bezos Person of the Year, recognizing the company's success in popularizing on-line shopping.

[edit] Merchant partnerships

The Web site CDNOW (cdnow.com) is powered and hosted by Amazon. Until June 30, 2006, typing ToysRUs.com into a browser would similarly bring up Amazon.com's Toys & Games tab; however, this relationship was terminated as the result of a lawsuit.^[8]

Amazon.com powers and operates retail web sites for Target, Sears Canada, Benefit Cosmetics, Bebe Stores, Timex Corporation, Marks & Spencer, Mothercare and Lacoste. For a growing number of enterprise clients, currently including the UK merchants Marks & Spencer, Benefit Cosmetics' UK entity and Mothercare, Amazon provides a unified multichannel platform from whence a customer can interchangeably interact with the retail website, standalone in-store terminals, and phone-based customer service agents. Amazon Web Services also powers AOL's Shop@AOL.

[edit] Locations

[edit] Headquarters

The company's global headquarters is located on Seattle's Beacon Hill. It has offices throughout other parts of greater Seattle including Union Station and The Columbia Center.

Amazon has announced plans to move its headquarters to the South Lake Union neighborhood of Seattle beginning in mid-2010, with full occupancy by 2011. This move will consolidate all Seattle employees onto the new 11-building campus.^[9]

[edit] Software development centers

The company employs software developers in medium- to large-sized centers across the globe. While most of Amazon's software development is in Seattle, other locations include:

• Slough (England)
• Edinburgh (Scotland)
• Dublin (Ireland)
• Bangalore, Chennai, and Hyderabad (India)
• Cape Town (South Africa)
• Iaşi (Romania)
• Shibuya (Tokyo, Japan)
• Beijing (China)
• Tempe, Arizona (USA)

[edit] Fulfillment and warehousing

Fulfillment centers are located in the following cities, often near airports:

• North America:

• Arizona, USA: Phoenix, Goodyear
• Delaware, USA: New Castle
• Indiana, USA: Whitestown, Munster
• Kansas, USA: Coffeyville
• Kentucky, USA: Campbellsville, Hebron (near CVG), Lexington, and Louisville
• Nevada, USA: Fernley and Red Rock (near 4SD)
• Pennsylvania, USA: Carlisle, Chambersburg, Hazleton, and Lewisberry
• Texas, USA: Dallas/Fort Worth
• Ontario, Canada: Mississauga (a Canada Post facility)

• Europe:

• Munster, Ireland: Cork
• Bedfordshire, England, UK: Marston Gate
• Inverclyde, Scotland, UK: Gourock
• Fife, Scotland, UK: Glenrothes
• Neath Port Talbot, Wales, UK: Crymlyn Burrows^[10][11] near Jersey Marine^[12]
• Loiret, France: Orléans-Boigny (2000),
• Loiret, France: Orléans-Saran (2007),
• Hesse, Germany: Bad Hersfeld
• Saxony, Germany: Leipzig

• Asia:

• Chiba, Japan
• Guangzhou, China
• Suzhou, China
• Beijing, China,india

[edit] Product lines

Amazon has steadily branched into retail sales of music CDs, videotapes and DVDs, software, consumer electronics, kitchen items, tools, lawn and garden items, toys & games, baby products, apparel, sporting goods, gourmet food, jewelry, watches, health and personal-care items, beauty products, musical instruments, clothing, industrial & scientific supplies, groceries, and more.

The company launched Amazon.com Auctions, its own Web auctions service, in March 1999. However it failed to chip away at industry pioneer eBay's juggernaut growth. Amazon Auctions was followed by the launch of a fixed-price marketplace business called zShops in September 1999, and a failed Sotheby's/Amazon partnership called sothebys.amazon.com in November.

Amazon no longer mentions either Auctions or zShops on its main pages and the help page for sellers now only mentions the Marketplace.^[13] Old links to zShop now simply redirect to the Amazon home page,^[14] while old links to Auctions take users to a transactions history page.^[15] New product listings are no longer possible for either service.

Although zShops failed to live up to its expectations, it laid the groundwork for the hugely successful Amazon Marketplace service launched in 2001 that let customers sell used books, CDs, DVDs, and other products alongside new items. Today, Amazon Marketplace's main rival is eBay's Half.com service.

Beginning August 2005,^[16] Amazon began selling products under its own private label, "Pinzon"; the initial trademark applications suggested the company intended to focus on textiles, kitchen utensils, and other household goods.^[16] In March 2007, the company applied to expand the trademark to cover a larger and more diverse list of goods, and to register a new design consisting of the "word PINZON in stylized letters with a notched letter O whose space appears at the "one o'clock" position.".^[17] The list of products registered for coverage by the trademark grew to include items such as paints, carpets, wallpaper, hair accessories, clothing, footwear, headgear, cleaning products, and jewelry.^[17]

On May 16, 2007 Amazon announced its intention to launch its own online music store.^[18] The store launched in the US in public beta September 25, 2007, selling downloads exclusively in MP3 format without digital rights management.^[19]

In August 2007, Amazon announced AmazonFresh, a grocery service offering perishable and nonperishable foods. Customers can have orders delivered to their homes at dawn or during a specified daytime window. Delivery was initially restricted to residents of Mercer Island, Washington, and was later expanded to several ZIP codes in Seattle proper.^[20] AmazonFresh also operated pick-up locations in the suburbs of Bellevue and Kirkland from summer 2007 through early 2008.

In 2008 Amazon expanded into film production and is currently funding the film The Stolen Child with 20th Century Fox.^[21]

[edit] Review and recommendation feature

See also: Recommender system

Amazon.com's customer reviews are monitored for all negative or indecent comments that are directed at anything, or anyone, but the product itself. In regards to the reviews lacking relative restrictions, Robert Spector who is the author of the book Amazon.com, describes how "when publishers and authors asked Bezos why Amazon.com would publish negative reviews, he defended the practice by claiming that Amazon.com was ‘taking a different approach...we want to make every book available – the good, the bad, and the ugly...to let truth loose’" (Spector 132).

[edit] Website

The domain amazon.com attracted at least 615 million visitors annually by 2008 according to a Compete.com survey. This was twice the numbers of walmart.com.^[22]

Amazon allows users to submit reviews to the web page of each product. As part of their review, users must rate the product on a rating scale from one to five stars. In 2004 a software error accidentally showed the names behind reviews that were submitted anonymously, and some authors were shown to have written glowing reviews of their own books. Amazon created a feature in recent years that allowed users to comment on reviews. Amazon provides an optional badging option for reviewers, e.g., to indicate the real name of the reviewer (based on confirmation of a credit card account) or to indicate that the reviewer is one of the top reviewers by popularity. The U.S. site generally has the most reviews. A review posted on one site is not necessarily visible on another site.

Search Inside the Book is a feature which allows customers to search for keywords in the full text of many books in the catalog.^[23][24] The feature started with 120,000 titles (or 33 million pages of text) on October 23, 2003. There are currently about 250,000 books in the program. Amazon has cooperated with around 130 publishers to allow users to perform these searches.

To avoid copyright violations, Amazon.com does not return the computer-readable text of the book but rather a picture of the matching page, disables printing, and puts limits on the number of pages in a book a single user can access. One author observed that his entire book could be read online by searching a few words^[25]. Additionally, customers can purchase online access to the some books via the Amazon Upgrade program, although the selection is currently quite limited.

According to information in Amazon.com discussion forums^{[citation needed]}, Amazon derives about 40% of its sales from affiliates whom they call Associates, and third party sellers who list and sell products on the Amazon websites. Associates receive a commission for referring customers to Amazon by placing links on their websites to the Amazon homepage or to specific products. If a referral results in a sale, the Associate receives a commission from Amazon. Worldwide, Amazon has "over 900,000 members" in its affiliate programs.^[26] Associates can access the Amazon catalog directly on their websites by using the Amazon Web Services (AWS) XML service. AStore is a new affiliate product that allows Associates to embed a subset of Amazon products within, or linked to from, another website.

Amazon reported over 1.3 million sellers sold products through Amazon's worldwide web sites in 2007. Selling on Amazon has become more popular as Amazon expanded into a variety of categories beyond media and built a variety of features to support volume selling. Unlike eBay, Amazon sellers do not have to maintain separate payment accounts; all payments and payment security are handled by Amazon itself.

According to the Internet audience measurement website Compete.com, Amazon attracts approximately 50 million U.S. consumers to its website on a monthly basis.^[27]

[edit] Acquisitions and spinoffs

• In April 1998, Amazon bought the Internet Movie Database (IMDb).
• In August 1998, Amazon bought Cambridge, Massachusetts-based PlanetAll for 800,000 shares of Amazon stock. PlanetAll operated a web-based address book, calendar, and reminder service. In the same deal, Amazon acquired Sunnyvale-based Junglee, an XML-based data mining startup for 1.6 million shares of Amazon stock. The two deals together were valued at about US$280 million at the time.
• In June 1999, Amazon bought Alexa Internet, Accept.com and Exchange.com in a set of stock deals worth approximately US$645 million.
• In 2003, Amazon purchased the rival online music retailer CD Now.
• In 2004, Amazon purchased Joyo.com, a Chinese e-commerce website. It also debuted A9.com, a company focused on researching and building innovative technology.
• In March 2005, Amazon acquired BookSurge, a print on demand company, and Mobipocket.com, an eBook software company.
• In July 2005, Amazon purchased CreateSpace (formerly CustomFlix), a Scotts Valley, California-based distributor of on-demand DVDs.^[28] Since the acquisition, CreateSpace has expanded its on-line services to include on-demand books and CDs, as well as video downloads. On July 30, 2007, the National Archives announced that it would make thousands of historic films available for purchase through CreateSpace.^[29]
• In February 2006, Amazon acquired Shopbop, a Madison, Wisconsin-based retailer of designer clothing and accessories for women.^[30]
• In May 2007, Amazon acquired dpreview.com, a London-based digital photography review website created by Phil Askey as his personal hobby website and Brilliance Audio, the largest independent publisher of audiobooks in the United States.^[31]
• In January 2008, Amazon announced that it would acquire audiobook provider Audible.com for $300 million in cash.
• In July 2008, Amazon's IMDb subsidiary purchased Box Office Mojo, a site that tracks movie sales in theatres.^[32]
• In August 2008, Amazon announced it had an agreement to purchase Victoria, B.C. based Abebooks, seller of new, used, out of print and rare books.^[33]
• In late August 2008, Amazon announced that it would acquire Seattle-based Shelfari, a book-based social network site, for an undisclosed sum.^[34] The move comes less than a month after Amazon's acquisition of AbeBooks, As part of that acquisition Amazon also got a stake in Shelfari's competitor LibraryThing, which AbeBooks had previously purchased a 40% stake in.

[edit] Products and services

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Amazon.com has incorporated a number of products and services into its shopping model, either through development or acquisition.

2001

Honor System and donations

The Honor System was originally launched in 2001 to allow customers to make donations or buy digital content, with Amazon collecting 2.9 percent of the payment plus a flat fee of $0.30 USD.

2002

Web Services

Amazon launched Amazon Web Services (AWS) in 2002. The service provides programmatic access to many features leveraged behind the scenes on its website.

2004

Amazon also created "channels" to benefit certain causes. In 2004, Amazon's "Presidential Candidates" allowed customers to donate US$5-200 to the campaigns of 2004 U.S. presidential hopefuls. Amazon has periodically reactivated a Red Cross donation channel after such tragedies as 9/11 and Hurricane Katrina. After the 2004 earthquake and tsunami in the Indian Ocean, Amazon set up an online donation channel to the American Red Cross, waiving its processing fee. By January 2005, nearly 200,000 individuals had donated over US$15.7 million in the US alone.^[35]

2005

Prime

Amazon Prime offers customers unlimited expedited shipping with no minimum purchase amount for a flat annual fee. The service also offers discounted priority shipping rates. Amazon launched the program in the continental United States in 2005, in Japan in June 2007, in the United Kingdom and Germany in November 2007, and in France (as "Amazon Premium") in October 2008.

Shorts

Launched in 2005, Amazon Shorts offers exclusive short form content, including short stories and non-fiction pieces from best-selling authors, all available for immediate download at US$.49. As of June 2007, the program has over 1,700 pieces and is adding about 50 new pieces per week.

Mechanical Turk

In November 2005, Amazon.com began testing Amazon Mechanical Turk, an application programming interface (API) allowing programs to dispatch tasks to human processors.

2006

S3

In March 2006, Amazon launched an online storage service called Amazon Simple Storage Service (Amazon S3). An unlimited number of data objects, from 1 byte to 5 gigabytes in size, can be stored in S3 and distributed via HTTP or BitTorrent. The service charges monthly fees for data stored and for data transferred.

SQS

In April 2006, Amazon introduced Amazon Simple Queue Service (Amazon SQS), a distributed queue messaging service.

Discussion boards

In August 2006, Amazon launched product wikis (later folded into Amapedia) and discussion forums for certain products using guidelines that follow standard message board conventions.

EC2

In August 2006, Amazon introduced Amazon Elastic Compute Cloud (Amazon EC2), a virtual site farm, allowing users to use the Amazon infrastructure with its high reliability to run diverse applications ranging from running simulations to web hosting. In 2008, Amazon improved the service adding Elastic Block Store (EBS), offering persistent storage for Amazon EC2 instances and Elastic IP addresses, static IP addresses designed for dynamic cloud computing.

2007

Amapedia

In January 2007 Amazon launched Amapedia, a collaborative wiki for user-generated content to replace ProductWiki.

Unbox

In March 2007, Amazon launched an online video on demand service.

MP3 downloads

In September 2007, Amazon launched a new music store (currently in beta) called Amazon MP3, which sells downloadable tracks, all in the MP3 format and most recorded at 256 kilobits per second variable bitrate (VBR).^[36] Amazon's terms of use agreements legally restrict use of the music, but Amazon does not use DRM to enforce those terms.^[37]

Amazon MP3 is selling music from the Big 4 record labels, EMI, Universal, Warner Bros. Records, and Sony BMG, as well as many independents. Previous to the launch of this service, Amazon made an investment in Amie Street, a similar music store with a variable pricing model based on demand.^[38]

Vine

In August 2007 Amazon launched Amazon Vine, which allows top product reviewers free access to pre-release products from vendors participating in the program. Reviewers may either return the used product to Amazon, or post a review and keep the product, within a few months of receipt.

FPS

In August 2007 Amazon launched a payment service specifically targeted at developers. Amazon FPS has facilities for developing many different charging models including micro-payments. The service also gives developers easy access to Amazon customers.

Kindle

In November 2007, Amazon launched Amazon Kindle, an e-book reader which downloads content over "Whispernet", a free EV-DO wireless service on the Sprint Nextel network. The screen uses E Ink technology to reduce battery consumption. In 2008 Amazon claimed its library had grown to 200,000 titles.

SimpleDB

In December 2007, Amazon introduced SimpleDB, a database system, allowing users of its other infrastructure to utilize a high reliability high performance database system.

AmazonFresh

In August 2007, Amazon launched an invitation-only beta-test for online grocery orderies to be delivered to your door. It has since rolled out in several Seattle, Washington suburbs.

2008

Amazon MP3

In January 2008 Amazon announced they would be rolling out their Amazon MP3 service to their subsidiary websites worldwide throughout the year.^[39] On December 1, 2008, Amazon MP3 was made available in the UK.

Undated

Connect

Amazon Connect enables authors to post remarks on their book pages and to customers who have bought their books.

WebStore

WebStore by Amazon allows businesses to create e-commerce websites using Amazon technology. Merchants can customize their sites using their own photos and branding. Sellers pay a commission of 7 percent, which includes credit-card processing fees and fraud protection, and a subscription fee of $59.95/month for an unlimited number of webstores and listings.

[edit] Controversies

Trademark infringement

In 1999 the Amazon Bookstore Cooperative of Minneapolis, Minnesota sued Amazon.com for trademark infringement. The cooperative had been using the name "Amazon" since 1970, but reached an out-of-court agreement to share the name with the on-line retailer.^[40]

Patent use

The company has been controversial for its alleged use of patents as a competitive hindrance. The "1-click patent"^[41] is perhaps the best-known example of this. Amazon's use of the one-click patent against competitor Barnes and Noble's website led the Free Software Foundation to announce a boycott on Amazon in December 1999.^[42] The boycott was discontinued in September 2002.^[43]

On February 22, 2000, the company was granted a patent covering an internet-based customer referral system, or what is commonly called an "affiliate program". Reaction was swift and negative. Industry leaders Tim O'Reilly and Charlie Jackson spoke out against the patent,^[44] and O'Reilly published an open letter^[45] to Bezos protesting the 1-click patent and the affiliate program patent, and petitioning him to "avoid any attempts to limit the further development of internet commerce".

O'Reilly collected 10,000 signatures^[46] with this petition. Bezos responded with his own open letter.^[47] The protest ended with O'Reilly and Bezos visiting Washington, D.C. to lobby for patent reform.

On February 25, 2003, the company was granted a patent titled "Method and system for conducting a discussion relating to an item on Internet discussion boards".^[48]

On May 12, 2006, the USPTO ordered a reexamination^[49] of the "One-Click" patent, based on a request filed by Peter Calveley, who cited as prior art an earlier e-commerce patent and the Digicash electronic cash system.^[50]

Canadian operations

Amazon has a Canadian site in both English and French, but is prevented from operating any headquarters, servers, fulfillment centers or call centers in Canada by that country's legal restrictions on foreign-owned booksellers. Instead, Amazon's Canadian site originates in the United States, and Amazon has an agreement with Canada Post to handle distribution within Canada and for the use of the Crown corporation's Mississauga, Ontario shipping facility.^[51] The launch of Amazon.ca generated controversy in Canada. In 2002, the Canadian Booksellers Association and Indigo Books and Music sought a court ruling that Amazon's partnership with Canada Post represented an attempt to circumvent Canadian law,^[52] but the litigation was dropped in 2004.^[53]

Customer service

Customers can now submit written customer service requests (which are answered by e-mail), call a toll-free number, or use a click-to-call service to be connected by phone to an available service representative.^[54]

Before Amazon published its phone number on its website, numerous web pages existed solely to publish the Amazon.com customer service phone numbers. One such page received in excess of 23,000 visits in December 2004 alone.^[55] Despite the perceived difficulty in reaching customer service by phone, Amazon.com "remains the leader among e-tailers" in customer satisfaction according to the American Customer Satisfaction Index's fourth-quarter 2007 survey.^[56]

Labor relations

Amazon has opposed efforts by trades unions to organize in both the United States and the United Kingdom.

In 2001, 850 employees in Seattle were laid off by Amazon.com after a unionisation drive. The Washington Alliance of Technological Workers (WashTech) accused the company of violating union laws, and claimed Amazon managers subjected them to intimidation and heavy propaganda. Amazon denies any link between the unionisation effort and the lay-offs.^[57]

Also in 2001, Amazon.co.uk hired a US management consultancy organization, The Burke Group, to assist in defeating a campaign by the Graphical, Paper and Media Union (GPMU, now part of Amicus) to achieve recognition in the Milton Keynes distribution depot. It was alleged that the company victimised or sacked four union members during the 2001 recognition drive and held a series of captive meetings with employees.^[58][59]

Some employees of Amazon in the United Kingdom are required to submit to drug tests and can have their employment terminated on a positive test. However, the reliability of the tests has been called into question, as in the case of an Amazon worker who won a tribunal case against the company.^[60]

The Humane Society of the United States v. Amazon.com, Inc., et al.

Amazon at one time carried two cockfighting magazines and two dog fighting videos although the Humane Society of the United States (HSUS) contends that the sale of these materials is a violation of U.S. Federal law. The Humane Society of the United States has filed a lawsuit against Amazon.^[61] A campaign to boycott Amazon purchases gained momentum in August 2007 after the much publicized dog fighting case involving NFL quarterback Michael Vick.^[62]

On May 21, 2008, Marburger Publishing agreed to settle with the Humane Society by requesting that Amazon stop offering their magazine The Gamecock for subscription. The second magazine named in the Humane Society lawsuit, The Feathered Warrior, remains available.^[63]

Reader reviews credibility

A 2004 glitch in Amazon.ca's review system revealed that many well-established authors were anonymously giving themselves glowing reviews, with some revealed to be anonymously giving "rival" authors terrible reviews. The glitch in the system was fixed and those reviews have since been removed or made non anonymous.^[64][65]

BookSurge

In March 2008, sales representatives of Amazon's BookSurge division started contacting publishers of print on demand titles to inform them that for Amazon to continue selling their POD-produced books, they would need to sign agreements with Amazon's own BookSurge POD company. Publishers were told that eventually, the only POD titles that Amazon would be selling would be those printed by their own company, BookSurge. Some publishers felt that this ultimatum amounted to monopoly abuse, and questioned the ethics of the move and its legality under anti-trust law.^[66]

Interfering with publishers' direct sales

In 2008, Amazon UK came under criticism for attempting to prevent publishers from direct selling at discount from their own websites. Amazon's argument was that they should be able to pay the publishers based on the lower prices offered on their websites, rather than on the full RRP.^[67][68]

Dispute with Hachette Livre UK

In June 2008 Amazon UK drew criticism in the British publishing community following their withdrawal from sale of key titles published by Hachette Livre UK. The withdrawal is apparently intended to put pressure on the publisher to provide levels of discount described by the trade as unreasonable. Curtis Brown's managing director Jonathan Lloyd was quoted in The Bookseller magazine as saying: "I think the entire industry of publishers, authors and agents are 100% behind [Hachette]. Someone has to draw a line in the sand. Publishers have given 1% a year away to retailers, so where does it stop? Using authors as a financial football is disgraceful."^[69][70]

[edit] Entrepreneurship by former employees

A number of companies have been started and funded by former Amazon.com employees. ^[71]

• Hulu is led by Jason Kilar, a former SVP at Amazon.com.
• Jambool/SocialGold was co-founded by former Amazon engineers Vikas Gupta and Reza Hussein.
• Rich Relevance was founded by Dave Selinger.
• TeachStreet was founded by Dave Schappell, an early Amazon.com product manager.
• Trusera was founded by Keith Schorsch, an early Amazonian.
• Twilio was founded by Jeff Lawson, an Amazon product manager.
• Vittana was founded by Kushal Chakrabarti, an Amazon.com engineer.
• Whrrl was founded by Jeff Holden, a former SVP at Amazon.com.
• Wikinvest was founded by Michael Sha.

[edit] See also

• Amazon Standard Identification Number (ASIN)
• Statistically Improbable Phrases: Amazon.com's phrase extraction technique for indexing books.
• Amazon Breakthrough Novel Award
• Amazon MP3
• Amazon Web Services
• Barnes & Noble
• Book Stacks Unlimited
• Online shopping

[edit] References

[edit] Further reading

• Robert Spector (2000). amazon.com - Get Big Fast : Inside the Revolutionary Business Model That Changed the World. Harper Collins Publishers. ISBN 0-06-662041-4. 
• Mike Daisey (2002). 21 Dog Years. Free Press. ISBN 0-7432-2580-5. 
• Mara Friedman (2004). Amazon.com for Dummies. Wiley Publishing. ISBN 0-7645-5840-4. 
• James Marcus (2004). Amazonia: Five Years at the Epicenter of the Dot.Com Juggernaut. W.W. Norton. ISBN 1-56584-870-5. 
• "A conversation with Werner Vogels", ACM Queue, May 2006.

[edit] External links

Wikimedia Commons has media related to: Amazon.com

• Amazon.com
• Amazon.co.uk
  • List of International Websites
• WebStore by Amazon

v • d • e Amazon.com People Jeff Bezos · Brian Krueger · Brian McBride · Tom Szkutak · Brian Valentine · Werner Vogels · Gregg Zehr Former: Rick Dalzell · Brewster Kahle · Ram Shriram · David L. Tennenhouse Websites A9.com · AbeBooks · Alexa (Ranking, Toolbar, Web Services) · Amapedia · Amazon China · Askville · CDNOW · Digital Photography Review · Fresh · IMDb · Marketplace · Payments · PlanetAll · Shelfari