Chapter 2

Amazon

FORTY-FOUR PERCENT OF U.S. HOUSEHOLDS have a gun, and 52

percent have Amazon Prime.^1 Wealthy households are more likely to

have Amazon Prime than a landline phone.^2 Half of all online growth
and 21 percent of retail growth in the United States in 2016 could be

attributed to Amazon.^3 ,^4 ,^5 When in a brick-and-mortar store, one in

four consumers check user reviews on Amazon before purchasing.^6
There are several good books, including Brad Stone’s impressive
The Everything Store, that tell the story of how a hedge fund analyst
named Jeff Bezos drove cross-country from New York to Seattle with
his wife and formulated his business plan for Amazon while on the
road. Many who write about Amazon argue the firm’s core assets are
its operational capabilities, engineers, or brand. I, on the other hand,
would argue that the real reasons Amazon is kicking the collective
asses of its competition—and its likely ascent to a trillion dollars in

value—are different.^7 Similar to the other Four, Amazon’s rise rests on
its appeal to our instincts. The other wind at its back is a simple, clear
story that has enabled it to raise, and spend, staggering amounts of
capital.