Wednesday, November 21, 2018

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.
Image result for Amazon AWS Logo
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.
Image result for Amazon Go
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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