From Jeffy's Online Books to everything from A to Z, Amazon.com is an empire amongst empires. Bezos created something remarkable. Dave Young: Welcome to the Empire Builders Podcast, teaching business owners the not-so-secret techniques that took famous businesses from mom-and-pop to major brands. Stephen Semple is a marketing consultant, story collector, and storyteller. I'm Stephen's sidekick and business partner, Dave Young. Before we get into today's episode, a word from our sponsor, which is... Well, it's us, but we're highlighting ads we've written and produced for our clients. So here's one of those. [Pinpoint Payments Ad] Dave Young: Ding-dong. Okay. Well, I was making noises there as we started. Welcome to the Empire Builders Podcast. Dave Young here alongside Stephen Semple, and we're talking about empires. I mean, businesses that started tiny and grew into behemoths, in this case, and often... Well, every time what we do is we let the countdown to the recording start, and then Stephen whispers in my ear today's topic, and we see if I recognize it. Maybe perhaps I've heard of them. And today, he just said one word, Amazon. And I'm like, "Is that a river?" I mean, that's what we all said back in the day when Jeff Bezos started it- Stephen Semple: Yes. Dave Young: ... was, "Really, you named it after a river in South America? What are you thinking? What's wrong with you?" But I guess he proved them wrong. Stephen Semple: What you're going to discover, wasn't actually the first name. Dave Young: Oh, cool. They started with a different name and then switched to Amazon. Stephen Semple: Jeffy's Online Books? Dave Young: Well, and here's the thing. We're 200-and-some-odd episodes in, and we've managed to hold off not covering Amazon. That's a good point. Yeah. Stephen Semple: And I resisted myself, because basically everything that's to be said about Amazon has probably been said, but I did come across a couple of interesting little tidbits that we're going to focus on- Dave Young: Oh, cool. Stephen Semple: ... that I hope gives a little bit different picture to Amazon than the other things, people. Look, Amazon is a massive success, has changed the way the world is, was unbelievably innovative and forward-thinking. And today, Amazon does like 8,000 orders a minute. Dave Young: A minute? Stephen Semple: A minute. Dave Young: Unbelievable. Stephen Semple: Crazy, isn't it? Dave Young: Mm-hmm. Stephen Semple: And Jeff Bezos is one of the richest men in the world, and Amazon is just a monster out there. But here's the thing that's also really interesting. Jeff Bezos did not come from technology or retail. And how often have we seen this over and over and over again, that these businesses are built by people from outside the industry? That is like 9 out of 10, or probably even more like 99 out of 100. He was an investment guy that was working in the early '90s on Wall Street. That's what he was doing. And he was making big bucks doing research in the technology space. So he was working in the space, but he wasn't a tech guy or a retail guy. And he comes across this report about growth in the internet space. And he literally... It boggles his mind. He's working away in Wall Street, comes across this report, and it says, the space is growing at 2300%. And he literally, as the story goes, picks up the phone, calls the analyst, and said, "There's a typo here." And they were like, "No, this is how it's growing." And he was like, "Oh my God." Now, let's think about this for a moment, because it's easy to forget this. 1989 is when the first online transaction on the World Wide Web happened. Dave Young: I wouldn't have thought it was even that long ago, but yeah. Stephen Semple: Yeah, yeah, but it was, like, one- Dave Young: Yeah. It's ancient history now, but... Stephen Semple: We forget, we forget how much the growth is. And if you really want to go back, probably the best documentation of the growth we've had is episode 227 on AOL. Because AOL was really a driver of internet growth. It really was. It was really one of the pioneers that took people online. So to be looking at these things in the early '90s and go, "Hey, I see growth in online retail," that's really forward-thinking. I've got to give Bezos credit. Not a lot of people were thinking that way. So he looks at this growth and he says, "There's got to be potential to do a business in this space." And that's where he starts off. We've got to do a business in this space. So he does brainstorming ideas with his wife at the time, McKinsey, and they look at investment sites, they look at advice sites, but he decides it needs to be a store, because people shop every day. Everyone. It's mass- Dave Young: An online store, yeah. Stephen Semple: It's mass, it's something we do all the time, it's habitual, and he doesn't want to do something that's a niche. And it has no boundaries, and ideally you could remove a lot of the friction in shopping. But he realizes ...
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