Amazon.com started selling books, nowadays Amazon is a titan of e-commerce, logistics, payments, hardware, data storage, and media. It dabbles in plenty of more industries. It’s the go-to site for online shoppers and merchants alike, a modern necessity that independent sellers love to hate.
Behind every Amazon, business decision is the “flywheel” philosophy. Amazon CEO Jeff Bezos borrowed the term from business consultant Jim Collins back in the early days of Amazon. It describes a cycle in which a company cuts prices to attract customers, which increases sales and attracts more customers, which allows the company to benefit from economies of scale (bundling together logistics and other routine costs), until, ultimately, the company can cut prices again, spinning the flywheel anew.