The making of Amazon Prime the most successful membership program

Amazon wasn’t always the king of online shopping. In the fall of 2004, Jeff Bezos’s company was still mostly selling just books and DVDs.

That same year, Amazon was under siege from multiple sides. Some of its biggest competitors were brick-and-mortar chains like Best Buy, which was still in expansion mode at the time, with sales growing 17 percent annually. Toys ‘R’ Us sued Amazon in a high-profile battle, alleging it had violated an agreement the two companies had for the toy store chain to be an exclusive seller on Amazon.com.

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