Dhruv Rathee - How Jeff Bezos made Amazon a $1.6 Trillion company.. - video Dailymotion

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Amazon is easily the worlds largest marketplace in the whole world today. You can buy almost anything on there. But when it started out in 1995, Jeff Bezos had the idea to make an online bookstore only. How did Amazon start out, what were its flops like the Fire Phone and successes like Kindle Tablet? I explain the whole story in this video. Learn how amazon became one of the most valuable companies in the world today.

Transcript

00:00अमस्कार दोस्तों. साल था 1994.

00:02जेफ बेजोस अपनी अच्छी-खासी इंवेस्ट्मेंट बैंक की नौकरी छोड़ देते हैं

00:06अपने स्टार्ट-अप पर काम करने के लिए.

00:08उस समय में इंटरनेट में जबरदस ग्रोथ होती हुए दिख रही थी.

00:11तो उन्हें आइडिया आता है कि क्यूं ना इंटरनेट से रिलेटिट कुछ किया जाए.

00:15क्यूना एक ऑनलाइन स्टोर बनाया जाए किताबे बेचने के लिए.

00:19क्या नाम होगा इस ऑनलाइन स्टोर का?

00:21वो नाम सोचते हैं कडाबरा.

00:23आबरा कडाबरा से कडाबरा.

00:25यह नाम इतना अजीव था कि

00:27जब ही वो इस नाम को इस्तिमाल करने लगते हैं, उनके लॉयर उन्हें कहते हैं कि यह क्या नाम है.

00:32हम जब कॉल पर बात करते हैं कस्टमर से, उन्हें नाम तक समझ में नहीं आता हमारी कंपनी का.

00:36इस नाम को बदलना होगा, तो जेफ बिज़ोस और नाम के आईडियास सोचते हैं.

00:40वो कई डोमेइन नेम्स रेजिस्टर करवाते हैं.

00:42Awake.com, Browse.com, Bookmall.com, क्योंकि यहाँ पर एक ओनलाइन स्टोर खोला जा रहा है, तो Bookmall.

00:48Relentless.com, इन फैक्ड यह तो एसा डोमेइन नेम है, जो कि आज के दिन तक Amazon.com पर रीडरेक्ट करता है, अगर आप इस वेबसाइट को टाइप करोगे अपने ब्राॉजर में.

00:57लेकिन फाइलिली यह Amazon नाम को फाइलिल करते हैं, यह सोच कर कि Amazon दुनिया का लारजिस्ट रेंफॉरेस्ट है.

01:04और यहाँ पर Amazon नदी भी दुनिया की लारजिस्ट नदी है, तो Amazon, जो मैं कमपनी बनाऊंगा, वो दुनिया का लारजिस्ट बुकस्टोर बनेगी.

01:13अब इंट्रेस्टिंग चीज़ यह है कि अगर हम 25 साल फास्ट फॉरवर्ड करें, आज के दिन Amazon ना सिर्फ दुनिया का लारजिस्ट बुकस्टोर है, बलकि कुछ भी खरीदने के लिए Amazon आज के दिन सबसे बड़ा स्टोर है उनलाइन.

01:24इसके लावा, Amazon Prime Video वान अपनी लारजिस्ट OTT प्लैटफॉर्म्स है, Amazon Web Services अपनी फील्ड में नमबर वन पर है, Amazon Alexa, Amazon Kindle, Amazon Drive, Amazon Music, Amazon का Audible, Amazon Pay, यहां तक कि आजकल राशन भी डिलिवर करना शुरू कर दिया Amazon ने कुछ देशों में, Amazon Fresh नाम से, और एक टाइम तो Amazon ने अपना फो

01:54प्लैटफॉर्म्स के मामले में, बल्कि इतने अलग-अलग सेक्टर्स में फैली होई कंपनी है यह, कैसे पॉसिबल हो पाया, क्या बिजनस मॉडल है यहाँ पर Amazon का, आइए समझते हैं आज किस वीडियो में

02:04जेफ बेजोस को है प्रवाद में प्रस्ट इवन बीइन पर प्रवाद 200 बिलियन डालर के लिए जानता है

02:11मैं एक बेजोस पर था, मैं बहुत कुछ बड़ता हूँ, मैं विप नर्डी था

02:14मैं अत्ते कर नहीं कर लगता है मैं में प्रस्ट इवन बीइन पर कुछ बड़ता हूँ, मैं अत्ते कर लगता है कि मैं प्रस्ट इवन बीइन पर कुछ बड़ता हूँ

02:20अमिज़ौन का आइडिया शुरुवात से ही बहुत सिम्पल था

02:25लेकिन अपने टाइम के लिए बहुत यूनीक आइडिया था.

02:28एक ऑनलाइन बुक स्टोर बनाना.

02:29उस वक्त किताबे लोग फिजिकल बुक स्टोर्स में जाकर खरीदते थे.

02:33कियों ना किताबों को ओनलाइन खरीदा जा सके एंटरनेट पर एक वेबसाइट के दुआरा.

02:38तो शुरुवात में आमेज़ौन की वेबसाइट सिरफ एक बुक सेलिंग वेबसाइट थी.

02:41ओनलाइन किताबों को बेचने का फायदा ये था

02:43कि एक ही वेबसाइट पर धेर सारी किताबों का एकसेस कस्टमर्स को मिल पाएगा.

02:47बहुत ही बेसिक आइडिया, प्राक्टिकल और कन्वीनियंट आइडिया

02:51जिसकी लोगों को ज़रूरत थी.

02:52शुरुबात से ही एज़ एक स्टार्ट-अप एमज़ान एक बहुत सक्सेस्वुल कमपनी रही.

02:551995 में इन्होंने अपनी वेबसाइट लॉंच करी थी.

02:58और दिसेमबर 1996 तक इनके पास 1,80,000 का कस्टमर बेस बन गया था.

03:03उस समय इनकी वेबसाइट कुछ ऐसी दिखती थी.

03:061997 तक आते आते इनका रेविन्यू $148,000,000 तक हो गया था.

03:11और इस पॉंट अप टाइम पर जेफ ने सोचा कि वो एक प्राइविट कंपनी नहीं रखना चाहेंगे.

03:15बलकि स्टॉक मार्केट पर पब्लिक कंपनी की तरह लिस्ट करना चाहेंगे.

03:18ताकि और पैसा आ सके कंपनी को ग्रो करने के लिए.

03:21तो 1997 में Amazon.com एक पब्लिक कंपनी बन गई.

03:25और 1998 तक Amazon के रेविन्यू $600,000,000 तक पहुंच गए.

03:30Amazon के सक्सेस के पीछे दो में रीजन्स बताय जाते थे.

03:33पहला तो ये कि Amazon बहुत अच्छा कंवीनियन्स ओफर कर रहा था कस्टमर्स को.

03:37और उस समय में ना के बराबर कोई और कंपनी थी,

03:40जो Amazon के कॉंपिटिशन में थी, सेम चीज कर रही थी.

03:43और दूसरा एक ऐसी चीज जिसे फ्लाइवील एफेक्ट नाम से पुकारा जाता है.

03:47फ्लाइवील बेसिकली एक घूमता हुआ पईया होता है,

03:50कहीं से भी आप उसे घुमाओगे तो वो और ज़्यादा घूमने लगेगा.

03:52Amazon का बिजनस मॉडल एक फ्लाइवील की तरह बन गया था उस समय में.

03:56ये सस्ते दाम पर किताबे बेचते थे और मिलियन्स अफ किताबे इनके ओनलाइन स्टोर पर अवेलेबल थी.

04:01तो कस्टमर्स को बहुत मजा आता था.

04:03कस्टमर्स खुश थे, और कस्टमर्स इनकी वेबसाइट पर आते थे इस reason की वज़े से.

04:07अब क्योंकी और कस्टमर्स आ रहे थे इनकी वेबसाइट पर,

04:09तो जो किताबे बेचने वाले सेलर्स थे,

04:11Especially the third party commission based sellers

04:14they also want to come to Amazon to sell their books

04:17because they see that there are so many customers here.

04:20So more sellers put their books on Amazon.

04:23Because of which more options were available to the customers

04:26to buy books on Amazon.

04:28So it became a wheel that is being pushed twice in the same direction

04:32and it is spinning faster and faster.

04:33And when Amazon would get more profit,

04:35Amazon would use that money to make their website better,

04:39to improve the customer's experience

04:41and to reduce the cost.

04:43Because the whole game here was about the cost.

04:46If books are sold at a cheap price

04:48and customers and sellers come,

04:50then it becomes a good business model.

04:52In 1998, Bezos thought

04:54why not use this strategy

04:56not only to sell books

04:58but also to sell computer games

05:00and music as well.

05:02So in 1998, Amazon expanded its business.

05:05Instead of books, computer games and music

05:07were also sold on the website.

05:09It was a huge success.

05:11And in 1999,

05:13Jeff Bezos became the Person of the Year

05:15of Time Magazine.

05:16His photo was printed on the front page.

05:18Along with Time, Amazon adopted many small and big ideas

05:21which helped the company's growth.

05:23One such idea was

05:25the One Click Button.

05:27When you shop on Amazon,

05:29there is an option called Add to Cart

05:31and there is an option called Buy Now with One Click.

05:34By pressing a button, you can buy things.

05:36There will be a delivery.

05:38A lot of people use this One Click Button

05:40to buy things they don't really need.

05:43This button was a good idea

05:45which was so successful

05:47that in September 1999,

05:49Bezos made a patent for this technology.

05:52There were two benefits of this simple looking button.

05:54One is the obvious benefit

05:56that you can buy things more easily.

05:58The convenience of the customer will increase a lot.

06:01But the second hidden benefit was

06:03that when people use this button,

06:05they have to save all their information.

06:08Personal information.

06:09Your name, contact details,

06:11payment details, your billing address.

06:13Only then can you use this button.

06:15So Amazon started tracking it.

06:17When people use this button,

06:19what are they buying?

06:20And on that basis, Amazon started giving suggestions

06:23that if this person has bought this,

06:25he will like it more.

06:26And from this, they started giving ads

06:28to the customers according to their buying preferences.

06:30With the help of these targeted ads,

06:32it became easier for Amazon to sell things

06:34and their sales increased even faster.

06:36If you press the button 2-3 times

06:38to buy something,

06:39you get time to think

06:41if you really want it or if you want to buy it.

06:43But if you buy something

06:45by pressing just one button,

06:47you won't get the time to think.

06:49So Amazon's sales increased even more.

06:51Many companies tried to copy this idea.

06:54There was a company called Barnes & Noble.

06:56They also tried to put a one-click button.

06:59But Amazon had the patent

07:01so they lost the lawsuit.

07:03And only Amazon could use this.

07:05Amazon got a huge advantage because of this.

07:08But fortunately, for the companies,

07:10this patent expired in 2017.

07:13And today, any company can use it.

07:15In the year 2000, Amazon Marketplace was launched.

07:18Jeff thought,

07:19why am I stuck on games and books?

07:22Why can't anything be sold on Amazon?

07:24So through this Marketplace,

07:26any third-party vendor could sell anything on Amazon.

07:29The advantage was that Amazon

07:31would take some portion of the sale

07:34and sell whatever was available.

07:36And this was a huge advantage.

07:38Because usually, if Amazon wanted to sell something big,

07:40like a table chair,

07:42then Amazon would have to keep a warehouse

07:44where they would make the table chair and store it.

07:47But here, they were making a third-party table chair

07:50and selling it through Amazon.

07:52So Amazon didn't need any storage space.

07:54They didn't need to make a warehouse.

07:56So this became a great source of revenue for the company.

08:00Amazon's growth was so fast

08:02that so many customers were coming

08:04and so many people were selling things on it

08:06that there was a shortage of data storage.

08:08So Jeff decided to invest in such a technology

08:11and make his own data storage facility.

08:13Instead of using someone else's storage facility.

08:16So this is where AWS was born.

08:18Amazon Web Services.

08:20This was again a field

08:22that didn't have much competition.

08:24Not many companies were doing this.

08:26And this business became so successful for Amazon

08:29that today, this is the highest profitable business

08:32in which Amazon is involved.

08:3440% of Amazon's profitability comes from AWS.

08:37Amazon Web Services.

08:39Most of the top companies in the world

08:41that operate online, Netflix, Pinterest,

08:43Twitch, LinkedIn, Facebook,

08:45use Amazon Web Services

08:47to store their data.

08:49In 2007, Jeff Bezos made another horizontal expansion of Amazon.

08:53The first Kindle was launched.

08:55An e-reader.

08:57Amazon had started as an online bookstore.

09:00So launching an e-reader here

09:02that books can be read not only physically

09:04but also digitally.

09:06This was obviously a very related thing.

09:09The interesting thing is that Jeff Bezos decided

09:12that Kindle would be a zero-profit device.

09:15That is, the cost of making this tablet

09:18would be sold for the same price.

09:20Amazon would earn zero profit by selling Kindle.

09:23You'd be surprised to hear

09:25how this could be possible.

09:27There was a simple reason behind it

09:29that the books read in Kindle

09:31would be bought

09:33at Amazon's bookstore.

09:35Although Amazon wouldn't earn money from Kindle

09:38but Amazon would earn money by selling each book.

09:41This business strategy was very successful

09:43because with the help of this, Kindle

09:45became a very low-cost device.

09:47Many people started buying it

09:49and today, Kindle is the world's number one e-book reader.

09:51One thing you might have noticed, friends,

09:53is that all the stories I've told you about Amazon

09:55the areas in which Amazon has been successful

09:58in most of them, Amazon was the first company

10:01to do that business properly.

10:03To capture that market.

10:05There was a huge first-mover advantage

10:08that Amazon got many times.

10:10For example, the first company to think of

10:12opening an online bookstore.

10:14Taking advantage of that first-mover

10:16it becomes easier to be successful.

10:18Although, later, it is necessary to work

10:20to maintain it.

10:21For example, Amazon had taken patents

10:23of new technologies.

10:24And had innovated quickly

10:26so that Amazon could maintain that advantage.

10:28And the other competitors that came later

10:30could defeat them.

10:32In the areas where Amazon couldn't get

10:34the first-mover advantage

10:36and where the competition was already tough

10:38Amazon's failures emerged.

10:40For example, Amazon's Fire Phone.

10:43When Amazon tried to launch its smartphone

10:45in 2014.

10:47But 2014 was already quite late

10:49to launch a smartphone.

10:51In 2007, the first iPhone was launched.

10:53And Android was also launched a few years later.

10:56So by 2014,

10:58there was a tough competition

11:00between Apple and Android.

11:02Both companies were continuously innovating.

11:04New technologies were being brought.

11:06In such cases, when Amazon brought

11:08its smartphone,

11:10it was very difficult for Amazon

11:12to compete with experienced players.

11:14So Amazon's Fire Phone was a huge failure.

11:17On the other hand,

11:18in the case of e-readers,

11:19Amazon was one of the first companies

11:21to make e-readers.

11:22They made a good quality product

11:24at a very low cost with zero profit.

11:26So obviously, in the case of e-readers,

11:28Amazon is No. 1 today.

11:30We saw a similar thing in the Indian market.

11:33In the business field of Amazon,

11:35Flipkart was launched in 2007.

11:37In 2007, Amazon didn't enter India.

11:40It didn't enter the Indian market.

11:42So Flipkart company got

11:44a first-mover advantage.

11:46This advantage lasted for many years.

11:482013 was the year when Amazon

11:50entered India along with Amazon India.

11:53But because of this advantage of Flipkart,

11:55to date,

11:56Flipkart is able to give a strong competition

11:58to Amazon.

11:59Both the companies have almost a

12:01duopoly in the e-commerce market.

12:03Monopoly is when one company

12:05rules the market.

12:06Duopoly is when two companies

12:08rule the market.

12:09Around 30% is the share of both the companies.

12:11The remaining 30% is the share

12:13of all the other companies.

12:14If we look at the financial year 2020 data,

12:16the number of users

12:18of Flipkart is 3 times more

12:20than that of Amazon India.

12:21And the revenue earned

12:23is also 3 times more than that of Flipkart.

12:25The simple reason behind this is that

12:27Amazon is spending a lot of money

12:29on the Indian market

12:30so that it can increase its market share.

12:32So even if Amazon earns less profit,

12:34it's okay.

12:35It's sacrificing some profit

12:37to make more market share.

12:39Because as we can see,

12:40the company that takes the most

12:42share in the Indian market

12:44gets the advantage of a flywheel.

12:46More customers and more sellers

12:48will come.

12:49So it's very important to do this

12:51to be successful in this market.

12:53So even if you don't earn any profit

12:55in the beginning, it's okay.

12:56When Flipkart got its advantage,

12:58it took advantage of it

12:59by diversifying very quickly.

13:01Today, Myantra is in Flipkart.

13:03Flipkart Wholesale,

13:04Flipkart Health Plus,

13:05Cleartrip,

13:06Shopsi

13:07and even the payment app on the phone

13:09has a majority stake in Flipkart.

13:11As Amazon did a horizontal expansion

13:13in the USA and other Western countries

13:15of its business areas,

13:17Flipkart did the same in India.

13:19But overall,

13:20Amazon's growth

13:21has been exponential worldwide.

13:23You can see in the chart

13:25their revenue growth

13:27in the last 20 years.

13:28From 2005 to 2021,

13:30they have crossed

13:32$100 billion quarterly revenue.

13:35And this chart is increasing exponentially.

13:37Due to the coronavirus pandemic,

13:39it has increased even more.

13:41Because everyone was closed during the lockdown.

13:43So everyone was ordering from Amazon

13:45when other shops were closed.

13:46Amazon got a huge benefit from it.

13:48Because of which Jeff Bezos

13:50became the richest man in the world.

13:52Amazon's e-commerce business

13:54can be divided into two models.

13:561P and 3P.

13:571P means that Amazon

13:59buys a product by itself,

14:01stores it,

14:02puts it on its website,

14:03and then delivers the product

14:05to the consumer.

14:06The second is the 3P model.

14:08When someone else makes a product,

14:10they sell their product on Amazon.

14:13Amazon acts like a marketplace.

14:15And then the product is given

14:17to the consumer.

14:18So Amazon basically,

14:19in the 3P model,

14:20acts like a platform

14:22used by the sellers

14:24and the consumers

14:26to buy and sell their products.

14:28Interestingly,

14:29in the 1P model,

14:30there is not much profit margin.

14:31The maximum profit

14:33is from the 3P model.

14:34Because in 1P,

14:35you have to store the goods.

14:37Which is a very tedious task

14:39that how many warehouses

14:41can we store?

14:43How much time do we have to store?

14:45A lot of money is lost in all this.

14:47In the 3P model,

14:48there is only a website

14:49where people can come

14:50and sell and buy their goods.

14:51So the benefit for Amazon

14:53is to use the 3P model more.

14:56In the beginning,

14:57Amazon used the 1P model.

14:59When it started in the late 1990s.

15:01So you can see in this chart

15:03the proportion of 1P

15:05and 3P.

15:07With time,

15:08the percentage of 3P

15:10kept increasing.

15:11By 2018,

15:1258% of the goods sold

15:14on Amazon

15:15were sold with the 3P model.

15:17That is, Amazon was not taking any trouble

15:19and was earning more profit.

15:21What are the revenue sources of Amazon

15:23and how much money does Amazon earn

15:25from its different businesses?

15:26You can see this in this chart.

15:28If you look at the 2020 numbers,

15:30the most revenue from online stores

15:32is around 200 billion.

15:33And AWS

15:35is a huge source

15:36of Amazon's revenue.

15:37Because it is the most profitable.

15:40This chart only shows the revenue

15:41of how much money the company is earning.

15:43It doesn't show how much money

15:44the company is spending.

15:45For that,

15:46we look at the profitability chart.

15:48Interestingly,

15:49Amazon as a company

15:50was not very profitable

15:51in the first decade.

15:53Until 2014,

15:55the company was earning

15:56an equal amount of profit.

15:57Because whatever money the company earned,

15:59Jeff Bezos would invest it

16:01back in the business

16:02to expand the business.

16:04But after 2016 and 2018,

16:06especially,

16:07Amazon started earning profit

16:09and focused on profitability.

16:11And in the past few years,

16:12Amazon has earned so much profit

16:14that AWS is mainly credited for it.

16:17Because AWS is one of the highest

16:19profit margins business of Amazon.

16:2230% of their profit margin.

16:24And it has been increasing with time.

16:26In the past few years,

16:27Amazon's expansion

16:28has not stopped here.

16:29There has been a huge growth

16:30in Amazon Logistics.

16:32Where they are giving competition

16:33to the delivery services companies.

16:35Like UPS and FedEx.

16:37They are in North America, basically.

16:39And because of all these reasons,

16:41today, Amazon has become

16:43a company worth $1.6 trillion.

16:46This was the interesting story of Amazon.

16:49If you liked this video,

16:50you can check out the entire playlist

16:52of business model videos

16:54where I have explained the business models

16:56of Tesla, WhatsApp and many other companies

16:58in detail.

17:00And you can tell me in the comments

17:02what other companies'

17:04model breakdowns you want to see.

17:06Let's meet in the next video.

17:08Thank you very much!

Dhruv Rathee - How Jeff Bezos made Amazon a $1.6 Trillion company..

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