INFORMATION ABOUT AMAZON

                            

                               

Amazon opened for business in July 95. Amazon was a new star up business and its founder Jeffrey Bezos had no n previous experience of the the book trade. AS indicated above, the basic decision to start an online retailing company, the decision to retail books was based on n assessment of which types of merchandise where suited to online selling.

                       

Amazon started in seattle and the company worked in close association with a large book wholesaler that was also located in the city,. Expansion has been rapid and by 1999 amazon had for despatch bases in the us and further operations in Germany and the UK each European operation has its own web site.

                      

As of 1998 Amazons turnover was us dollar 10 million, a growth of 313 percent over the previous year. In its four year of existence Amazon has never made a profit the loss for the third quarter of 1999 was us 79 million on sales of us 365 million. The trend in growth and the inability to make a profit both seem set of continue for a number of years.

                          

In 1997 Amazon sold shares in the company. The shares quickly rose to dizzying heights. The market valuation of these and other internet shares is not a reflection of the turnover of profit record of the company there is an expectation of the rapid development of online markets and feeling that  first movers, will be uniquely positioned to exploit this potential.