Amazon.com 2000 Annual Report Download - page 22

We May Not Be Able to Adapt Quickly Enough to Changing Customer Requirements and Industry
Standards
Technology in the e-commerce industry changes rapidly. We may not be able to adapt quickly enough to
changing customer requirements and preferences and industry standards. Competitors often introduce new
products and services with new technologies. These changes and the emergence of new industry standards and
practices could render our existing Web sites and proprietary technology obsolete.
The Internet as a Medium for Commerce Is a Recent Phenomenon
Consumer use of the Internet as a medium for commerce is a recent phenomenon and is subject to a high
level of uncertainty. While the number of Internet users has been rising, the Internet infrastructure may not
expand fast enough to meet the increased levels of demand. If use of the Internet as a medium for commerce
does not continue to grow or grows at a slower rate than we anticipate, our sales would be lower than expected
and our business would be harmed.
We Could Be Liable for Unlawful or Fraudulent Activities by Users of Our Marketplace, Auctions and
zShops Services
We may be unable to prevent users of our Amazon Marketplace, Auctions and zShops services from
selling unlawful goods, or from selling goods in an unlawful manner. We may face civil or criminal liability
for unlawful and fraudulent activities by our users. Any costs we incur as a result of liability relating to the sale
of unlawful goods, the unlawful sale of goods, the fraudulent receipt of goods or the fraudulent collection of
payments could harm our business.
In running our Amazon Marketplace, Auctions and zShops services, we rely on sellers of goods to make
accurate representations and provide reliable delivery, and on buyers to pay the agreed purchase price. We do
not take responsibility for delivery of payment or goods and while we can suspend or terminate the accounts of
users who fail to fulfill their delivery obligations to other users, we cannot require users to make payments or
deliver goods. We do not compensate users who believe they have been defrauded by other users except
through our guarantee program. Under the guarantee program, fraudulent activities by our users, such as the
fraudulent receipt of goods and the fraudulent collection of payments, may create liability for us. In addition,
we are aware that governmental agencies are currently investigating the conduct of online auctions and could
require changes in the way we conduct this business.
Executive Officers and Directors
The following tables set forth certain information regarding the executive officers and Directors of the
Company as of February 28, 2001:
Executive Officers
Name Age Position
Jeffrey P. Bezos . . . 37 President, Chief Executive Officer, and Chairman of the Board
Mark J. Britto ..... 36 Senior Vice President, Cross-Site Merchandising
Richard L. Dalzell . . 43 Senior Vice President and Chief Information Officer
Warren C. Jenson . . 44 Senior Vice President and Chief Financial Officer
Diego Piacentini . . . 40 Senior Vice President and General Manager, International
John D. Risher .... 35 Senior Vice President and General Manager, U.S. Stores
Jeffrey A. Wilke . . . 34 Senior Vice President, Operations
Jeffrey P. Bezos. Mr. Bezos has been Chairman of the Board of Amazon.com since founding it in 1994
and Chief Executive Officer since May 1996. Mr. Bezos served as President from founding until June 1999 and
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