WAMcast
Wyatt Sell, Alfie Ranstead & Matt Falconer
So Jeff, I wanted to ask you - what was the inspiration behind founding Amazon? What made you want to get into ecommerce and selling books online?
Well Steve, I had always been passionate about the internet and saw the potential for how it could transform retail. I knew that books were an ideal first product to sell online because they have a very stable demand and a wide selection. The idea of being able to browse a huge selection of books from anywhere just seemed very compelling to me.
That's really insightful. It's amazing how quickly Amazon grew from just selling books to becoming 'the everything store'. When did you realize Amazon could expand into other product categories?
Pretty early on we saw that the infrastructure and technology we had built to sell books could quite easily be applied to other product types. Within just a couple of years we started expanding into music, DVDs, electronics, toys, and many other areas. The key was focusing on providing great selection, convenience and service no matter what we sold.
So Jeff, a few years ago Amazon released the Fire Phone which ended up being a pretty big flop. What happened there?
You're right, the Fire Phone was a failure for us. There were a few key reasons it didn't work out:
1. It didn't have a clear differentiation. We thought we could compete on specs and features alone without a unique selling point. But in the end, the phone didn't stand out.
2. Pricing was off. We wrongly thought we had enough loyal Amazon customers that would buy the phone just because it was from us. But at $200 on contract, it was too expensive for what it offered.
3. Lack of app ecosystem. We didn't have enough apps optimized for the phone and its unique features like Dynamic Perspective. And we couldn't match the selection in the Apple and Google app stores.
You know Steve, Amazon has been incredibly successful over the years, but with that success comes increased scrutiny and criticism. There are days I wish we were still just an online bookstore working out of my garage!
Tell me about it Jeff. Apple went through a similar transition. When you're small, people root for you and want you to succeed. But at a certain point, the tall poppy syndrome kicks in. Your success breeds resentment and people look for any reason to tear you down.
Exactly. The media loves to build people up just so they can revel in tearing them down. And politicians and regulators see successful companies as easy targets to score cheap political points. It really wears you down after a while.
I know the feeling. But you can't let the critics and naysayers distract you from the important work of continuing to build great products and deliver value to customers. Stay focused on your vision and tune out the noise.
That's great advice Steve. At the end of the day, we're here to serve our customers, not make politicians or the media happy. If we continue to obsess over customers, the rest will take care of itself.
Well, Jeff, this has been a fascinating conversation. I really appreciate you taking the time to chat today.
The pleasure was all mine, Steve. I've learned a lot from you over the years, so I'm always happy to talk shop. It's been an honor.
Likewise. Keep up the great work at Amazon. I'm excited to see what the future holds!
You too, Steve. Best of luck with everything at Apple. Talk to you again soon!