The Flywheel Effect and Amazon's Early Strategy

Amazon's early strategy involved creating a flywheel effect by prioritizing customer satisfaction over immediate profitability. By offering to buy a book for more than its selling price and covering the shipping cost, Amazon aimed to build trust and establish a reputation for delivering on its promises. This approach focused on making customers happy and building trust, laying the groundwork for long-term success. The flywheel effect was a crucial aspect of Amazon's strategy before the introduction of AWS, as the company aimed to ensure that customers trusted Amazon and were willing to continue doing business with them.