Retail Leader at Amazon Advocates for Embracing Risk

Amazon’s Big Apple Strategy Session: Reinvention in the Heart of NYC

In the bustling metropolis of New York City, the 2025 NRF Big Show was the stage where Doug Herrington, Amazon’s Worldwide Stores CEO, shared Amazon’s secrets. It wasn’t just survival but an unapologetic reinvention that took Amazon from near collapse to unrivaled retail dominance. At the heart of this tale is the decision to embrace three cornerstones of success: low prices, broad selection, and unfailing customer convenience.

The Dot.Com Drama: Navigating Through Turbulent Waters

Back in the late 20th century, it seemed the dot.com bubble might burst Amazon’s dreams. Critics, including a notorious Barron’s article titled “Amazon.bomb,” predicted the company’s downfall. But as Herrington recalled, Amazon’s founder Jeff Bezos had other plans. With a strong balance sheet and a stroke of luck, Amazon emerged from the chaos with an innovative strategy. Herrington emphasized, “Jeff said, ‘Let’s focus on those because we know those sources of customer value are not going to change.’”

Evolution Beyond Books: Amazon’s Transformation

Before it dominated every corner of retail, Amazon’s primary gig was book selling. Herrington described the strategic pivot toward a multi-category retail exchange, which initially sparked controversy. When the company decided to expand into selling music and DVDs in 1998, eyebrows were raised. Those skeptics were soon silenced when customers embraced the variety, evolving Amazon from a seasonal gift shop to the "everything store" we know today. You can read more about these early moves in Amazon’s corporate history here.

A Winning Play: Opening the Marketplace to Third-Party Sellers

One of the company’s pivotal moves was opening its platform to third-party sellers. Despite internal nervousness over competition, this decision was transformative. Herrington pointed out, “Sellers now represent more than 60% of units sold.” This strategic step dramatically broadened the selection available to consumers, reshaping the e-commerce landscape.

Prime Time: The Launch of Amazon Prime

In 2005, Amazon made what was then a bold move by launching its Prime service. At just $79 a year for two-day shipping on a million items, it seemed an outlandish concept. Herrington himself admitted initial skepticism about its potential. Yet, the convenience soon turned doubters into believers. Now, Amazon Prime covers 300 million items, with enhanced delivery speeds achieved by 2024.

AI: The Next Big Shift in Retail

Looking forward, Herrington is enthusiastic about the possibilities AI brings to the retail sector. “It’s going to touch all of us, all of our businesses,” he said, speculating about AI’s potential in creating new customer experiences and formats. Much like the internet brought a wave of change, AI seems poised to redefine retail.

Learning from Failures: Bezos’ Enduring Legacy

However, perhaps the most valuable lesson Amazon offers is its mentality toward failure. Jeff Bezos ingrained in Amazon a culture where taking risks was encouraged. Herrington reflected on Bezos’ wisdom, noting that more value is often lost by not trying new things than by failed attempts. This lesson, especially relevant during today’s AI transformation, remains central to Amazon’s ethos.

Such discussions about Amazon’s journey and future were the talk of the town, underlining the company’s reputation as a formidable innovator. The Big Apple, as ever, was host to another chapter in this retail juggernaut’s ongoing story of transformation and success.