Accounting 557

In: Business and Management

Submitted By Ardenvalley
Words 1208
Pages 5
Amazon versus eBay
ACC 557
October 22, 2013
Professor Darren Tennyuk

Amazon versus eBay
Jeff Bezos, founded Amazon.com in 1994 when he left his job as Vice-President of the Wall Street firm D.E. Shaw to move to Seattle. After reading a report that projected annual Web growth at 2.300 percent he launched his website in 1995. He began drawing up a plan to sell a list of products on the internet. Bezos narrow his list to five most common products: compact discs, computer hardware, computer software, videos, and books. The $40,000 investment from Nick Hanauer and $100,000 from Tom Alburg help created a more user friendly website that we used today.
Amazon.com is one of the largest Internet sellers of media in the world today. It selection of products have expanded to clothing, beauty products, house wares, and thousands other items. Bezos was so amazed that people all over the world were purchasing from Amazon. He decided to add an option for buyers to write their own reviews, which became a huge success for Amazon.com. At the time, people began to review Amazon as an online community and not as a place to purchase things. According to Swartz (2006) states, “By 1997, Amazon.com had generated $15.7 million in revenue. Once the company went public the same year, they decided to add CDs and movies to their website.” In 1998, some additional new items were added to Amazon product line: software, electronics, video games, toys, and home improvement items.
Amazon became so successful in a short period of time that people began to feel uncertainty. Amazon had drawn in over a billion of dollars in sales at the end of 1999. However in 2001, Amazon reported a down fall of $.4 billion, and had over 200 workers. Later on that year, Amazon laid off workers totaling over 1,000. Instead of giving up his investment, Bezos decided to recruit other companies to sell their…...

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