Amazon.com 2006 Annual Report Download - page 4

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successes is, in my opinion, a big part of why we can start businesses from scratch. The culture demands that
these new businesses be high potential and that they be innovative and differentiated, but it does not demand that
they be large on the day that they are born.
I remember how excited we were in 1996 as we crossed $10 million in book sales. It wasn’t hard to be
excited—we had grown to $10 million from zero. Today, when a new business inside Amazon grows to
$10 million, the overall company is growing from $10 billion to $10.01 billion. It would be easy for the senior
executives who run our established billion dollar businesses to scoff. But they don’t. They watch the growth rates
of the emerging businesses and send emails of congratulations. That’s pretty cool, and we’re proud it’s a part of
our culture.
In our experience, if a new business enjoys runaway success, it can only begin to be meaningful to the
overall company economics in something like three to seven years. We’ve seen those time frames with our
international businesses, our earlier non-media businesses, and our third party seller businesses. Today,
international is 45% of sales, non-media is 34% of sales, and our third party seller businesses account for 28% of
our units sold. We will be happy indeed if some of the new seeds we’re planting enjoy similar successes.
We’ve come a distance since we celebrated our first $10 million in sales. As we continue to grow, we’ll
work to maintain a culture that embraces new businesses. We will do so in a disciplined way, with an eye on
returns, potential size, and the ability to create differentiation that customers care about. We won’t always choose
right, and we won’t always succeed. But we will be choosy, and we will work hard and patiently.
As always, I attach our 1997 letter to shareholders. You’ll see that our philosophy and approach have not
changed. Many thanks for your support and encouragement.
Jeffrey P. Bezos
Founder and Chief Executive Officer
Amazon.com, Inc.