2018 – 1st Party vs 3rd Party

The letter opens with the factoid that third party selling is taking over first party selling – meaning that 58% of all sales on Amazon are not of Amazon sold merchandise. And Jeff calls out eBay, stating people chose Amazon over eBay because of the superior selling tools. I personally think it’s because of the superior buying experience, but hey, we all have our thoughts.

He then goes into talking about builders, the theme of AWS’ current marketing campaigns. He highlights a few of the AWS services that have been invented over the years, and compares them to their previous counterparts.

After a quick mention of retail, specifically physical retail and the fact that Amazon Go now has 10 stores, and growing, we move onto failure. This time he calls out failures Amazon has made, specifically the Fire phone. We learn that more than 100 million Alexa-enabled devices have been sold and a few more facts about Alexa.

He then moves to his final mention – employees. The $15/hour minimum wage is highlighted, and he specifically challenges other top competitors to match and beat this minimum, calling it “a kind of competition that will benefit everyone.” Lastly, he highlights investments Amazon is making to help kids. See the quote below for details.

“To train tomorrow’s workforce, we have pledged $50 million, including through our recently announced Amazon Future Engineer program, to support STEM and CS education around the country for elementary, high school, and university students, with a particular focus on attracting more girls and minorities to these professions. ” — Jeff Bezos