Lessons From Jeff Bezos and Risks To Take
We’re talking the takeaways you can learn from Jeff Bezos in his recent letter. And also how to apply it to your business. Coming up in this episode of the Amazon Seller Podcast.
Liran: One of the first things that really stuck out to me is that Amazon is very much focused on talking about third party sellers in this shareholder letter. In fact Jeff starts out, writing about about the growth of third party sales over the last 20 years. Hard to believe that third party sales had been going for 20 years, but starting in 1999, representing 3% of total sales on Amazon. Then 2018 being 58% of total sales on Amazon.
Jeff Bezos writes:
“Of great importance, our fulfillment by Amazon in the prime membership program in combination these two programs meaningfully improve the customer experience of buying from independent sellers with the success of these two programs now. So well established. It’s difficult for most people to fully appreciate today just how radical those two offerings were at the time we launched them.”
So they’re saying how that kind of changed the game and allowed third-party sellers to thrive on the platform.
Jeff Bezos also writes:
“From very early on in Amazon’s life, we knew we wanted to create a culture of builders. People who are curious explorers they like to invent. Even when they’re experts, they are fresh with a beginner’s mind. They see the way we do things. It’s just the way we do things now. Builder’s mentality helps us approach big heart to solve opportunities with a humble conviction that success can come through. Iteration, invent, launch, reinvent, relaunch, start over, rinse, repeat again. And again. They know the path to success is anything but straight.
So kinda, you know, to me that paragraph is very much like a launching products.
His business advice includes the following:
- Employ both wandering and being efficient.
- Failure needs to scale.
According to Jeff Bezos, he also doesn’t mean the following: “Of course we won’t undertake such experiments cavalierly. We’ll work hard to make them good bets, but not all good bets will ultimately pay out. This kind of large scale risk taking is part of the service we as a large company can provide to our customers and to society. The good news for our share owners is that a single big winning bet can more than cover the cost of many losers.”
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