Amazon mom how long
The story is told by the rank-and-file employees and the top company executives who built Prime. Their words have been edited and condensed for clarity.
Was it going to be auction sites? Was it going to be subscription services? Or was it going to be sites with free shipping thresholds? And so there was a lot of pushback. I hate having to go through the order pipeline and choose everything again and again and again.
I kind of have a perfectionist type of mentality. So I took the time in that coming week to write up a short half-pager that outlined the basic situation. That was when Jeff took it a step further. I remember him saying at the time that nobody wakes up every day hoping that their shipping would be just a little bit slower. Can you bring me some similar ideas for faster shipping? This is coming from my airline days. And then we proceeded to stitch almost all of them together We ended up with a half-price one-day, free two-day shipping with a membership fee.
We were excited. That Christmas, in particular, Amazon had some major stability problems that had gotten some pretty big primetime coverage. It was the week before peak. And Jeff Bezos sent a note to my immediate supervisor at the time The meeting was scheduled for Friday afternoon in December.
Friday morning rolls around and the website has a multi-hour crash. But this is so important that you have to come over to my house on Saturday morning. We arrive at his house and we actually are sent to a boathouse. The boathouse was larger than my condo and had a fully enclosed parking space for a boat inside. And I think that completely changed the mentality.
It was brilliant. It made Amazon the default. So he leads the way out. Even if everyone worked nonstop, the minimum to do a minimum viable product was six weeks. But back in , he arrived at Amazon from the manufacturing world as a newbie to retail.
Software was rewritten. Warehouse layouts were rejiggered. And new processes were implemented that borrowed techniques from ideas like the lean manufacturing methodology.
The new system was dubbed FastTrack. By , FastTrack was working: The standard hour timeframe it took Amazon to go from receiving an order to the box leaving the warehouse had shrunk, in some cases, to just three hours. Order in the next three hours and 42 minutes. We did that for almost a year to make sure that the processes worked and then we were confident launching it externally.
He made a deal with us. So we printed a million T-shirts. Your team literally saw you disappear — like you were no longer in your seat and they had no idea why. It was not a common thing. Amazon was not like that. There were some all-nighters and there were some nights when five hours of sleep would be a recharge.
For me, at the height of the project I was working between and hours a week. Are you sure the math works on this program? It was not obvious to even people that were writing the code that it was going to work in the long term.
So we put together a bunch of names. I agree. I like Prime. He was so convinced Prime was the right name. Sometimes people miss what a big bet it was on multiple dimensions. Could we scale it just to meet the promise with customers? Would they love it? And if they loved it too much, would we be able to eventually figure out how to pay for it? Google had this product called Froogle at the time and eBay was doing considerable volume relative to Amazon. Inside eBay, though, problems were mounting.
When it revealed its financial results to investors in early , its stock price plunged 19 percent. There was also dysfunction stemming from friction between eBay executives and those at PayPal, the online payments darling the auction site had purchased in Sounds like a perfect recipe for a big competitor to launch.
I think there were a couple places in history where eBay made the wrong determination about Amazon. Growth was slowing, and Quidsi was having trouble raising additional capital to continue expanding.
On September 14, the founders of Quidsi flew to Seattle to meet with Amazon and discuss a possible acquisition. As Quidsi's founders were sitting in a meeting with Amazon brass, Amazon hit Quidsi in the gut. It announced a new program called "Amazon Mom" that offered free Prime service and an additional percent discount on diapers if users signed up to get them through Amazon's monthly "subscribe and save" program.
This was a larger discount than Amazon offered on most other Subscribe and Save items. That month, Diapers. Amazon's losses may have actually been even larger. Amazon knew it was bleeding Quidsi dry. An internal email later in September discussed the price cuts Quidsi was forced to make to compete with the new Amazon Mom discounts. Quidsi didn't have the money to fight a lengthy price war with Amazon, and venture capitalists were reluctant to give Quidsi more cash to fight what looked like a hopeless battle.
So in November, Quidsi reluctantly signed a merger agreement with Amazon. When Stone was writing his book, an Amazon executive told him that in Stone's words "everything Amazon subsequently did in the diapers market [after mid] was planned beforehand and unrelated to competing with Quidsi.
Herrington specifically listed the Amazon Mom rollout as part of Amazon's "aggressive 'plan to win' against diapers. Amazon's claim is also hard to square with the company's actions post-acquisition. Stone notes that "a month after it announced the acquisition of Quidsi, Amazon closed the [Amazon Mom] program to new members.
In effect, Amazon hiked diaper prices soon after the acquisition. When Scanlon asked whether Bezos had signed off on raising diaper prices after the acquisition, Bezos pled ignorance.
The perks that come with Amazon Household include free, two-day shipping, streaming of digital content, early access to exclusive deals, and access to more than 1, books. Having an Amazon Household account also allows you to share credit and debit cards with the other adult on the account. If you share with them a credit card that earns cash back, points or miles, those rewards would accrue only to the owner of the credit card account.
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