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When Amazon Splits

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If there is a human who achieved their dream, Jeff Bezos is among them. I have to thank Amazon for being among the first to start a affiliate program for webmasters. I was part of the Amazon EcoSystem in 1997-98 when I started a website for a restaurant because the fax machine broke. (That is another story)

Fast forward to 2005-2007 and meeting Jeff Barr an evangelist for Amazon Web Services and learning all about tech for startups.
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Amazon is now in a lot of places and businesses and being dominant may mean they have to split their Lines of business.

Amazon with the addition of Whole Foods.
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The biggest section of Amazon that delights  many of us is the Prime part of Amazon. Free shipping, free movies, offers, even a dedicated day for us.
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If Amazon needs to split here are my predictions.

Business 1 : Amazon the logistic platform that enables anyone to sell online
Business 2: Amazon Local/Go shop in brick and mortar stores and get delivery. Amazon realizes that we want to touch, feel and try things and offline is important to online success.
Business 3: Prime video and membership.  Costco beware, the power of a membership is coming to take business away from you. Prime members can choose to shop online or get special privileges at the large Prime Stores.
Business 4: Amazon Web Services. It is kind of already a different business.

I think Jeff Bezos and Amazon do not want to be the monolith that the media and the stock market is making it to be. With Amazon split into 4 Jeff Bezos of course will be 4 times more valuable than today as all his 4 business will grow into monoliths and I will write another article in 5 years.

The "Prime" reason for Bezos' success is that among the 3 things he values the most is customer service. Over any profit, Bezos and Amazon want to make sure the satisfaction of customers transacting with anything Amazon is 98.9%. Pretty good. When was the last time you were looking for a support number on Amazon. The stuff just works and it will in all the 4 new companies that Jeff Bezos may be forced to own

What do you think ?


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