Amazon was founded in 1994 as an online bookstore and later became one of the world’s most valuable companies.
Jeff Bezos founded Amazon in 1994, and the company began selling books online in 1995. Books were a practical starting category because millions of titles could not fit in a physical shop, giving an online retailer a clear selection advantage. Amazon soon expanded into music, electronics, clothing, groceries, and many other categories.
Its market capitalization grew as investors recognized that Amazon was more than an online shop. Amazon Web Services became a major cloud-computing business, while advertising, logistics, subscriptions, and devices added further sources of revenue. The company’s Prime membership program also encouraged frequent purchases and recurring payments.
Amazon’s original name was Cadabra, but Bezos changed it after concerns that the name could be misheard. The company was named Amazon after the South American river, suggesting scale and breadth. Its stock-market value has fluctuated with retail margins, cloud growth, labor costs, and broader technology-market conditions.