Amazon.com’s path breaking business model

Amazon.com is the largest online retailer in the United States. It was founded in 1994 by Jeff Bezos and went online in 1995. It started operating as an online bookstore. Its initial business plan was prophetic – Jeff Bezos did not expect any profit for the first five years of operation. Other contemporary start-ups were posting profits at a fast rate. However, when the dot com crash came, many of them spiraled out of business while Amazon.com stayed on. Finally, it turned a $5 million profit in 2001