Imagine this sequence of events (and don’t peak by clicking on any of the links).

The year is 1994.

You notice that the internet is starting to become a big deal and that more and more products are being sold online. As a result of this trend, you decide to start an online business.

You write up the business plan and begin operations out of your garage. You then get lucky (or you’re just smart and talented). Within 2 months, sales reach $20,000/week. That’s over a million dollars a year.

Business continues to grow and within 3 years you’re able to take your company public, raising $54 million at a $438 million valuation. Over the subsequent two years, you’re then able to raise an additional $2.2 billion in debt to fund your continued growth. 

The year is now 2000.

You were just named Time magazine Man of the Year. And traditional brick-and-mortar retailers are really taking notice (i.e. suing you). That’s pretty impressive after only 6 years of operation. 

This company is called Amazon. And that “you” is Jeff Bezos.

I was reading up about how much of an asshole Jeff Bezos is, and then became interested in the Amazon story. I thought I would share a bit of it with you all here.

According to Sequoia Capital, Americans spent $4 trillion on retail shopping last year - 95% of which was still done in traditional brick-and-mortar stores. I’m actually a bit surprised by how high this number is. I would have thought that a larger percentage of people would be shopping online.

For me personally, I’d say that my split might be close to 50/50. From furniture to clothes, to even a new bicycle, I buy a lot online, come to think of it. Part of the reason is convenience, but the other reason is that I like having easy access to a broader selection.

About the only thing I really prefer buying in person is groceries. However even there I’ve been exploring ways to regularize shipments of the items I typically buy. I can’t recall where I read it, but I remember seeing something about less than 1% of groceries in America being bought online.

Intuitively, the percentage of online sales is only going to rise, particularly given the shift to mobile. Consumers can now shop anytime, anywhere. Real estate companies and retailers certainly need to pay attention.

But just like the internet didn’t make cities irrelevant, I don’t think it’ll make shopping in person completely extinct. As Sequoia Capital points out in its article, mobile phones are creating new opportunities at the intersection of online and real world shopping.

So while I don’t know what the future online/offline split might be, I suspect that the two worlds will continue to blur together. I might buy a bicycle online, but when it comes time to service it, I’d like to be able to bring it into a store.

Imagine this sequence of events (and don’t peak by clicking on any of the links).

The year is 1994.

You notice that the internet is starting to become a big deal and that more and more products are being sold online. As a result of this trend, you decide to start an online business.

You write up the business plan and begin operations out of your garage. You then get lucky (or you’re just smart and talented). Within 2 months, sales reach $20,000/week. That’s over a million dollars a year.

Business continues to grow and within 3 years you’re able to take your company public, raising $54 million at a $438 million valuation. Over the subsequent two years, you’re then able to raise an additional $2.2 billion in debt to fund your continued growth. 

The year is now 2000.

You were just named Time magazine Man of the Year. And traditional brick-and-mortar retailers are really taking notice (i.e. suing you). That’s pretty impressive after only 6 years of operation. 

This company is called Amazon. And that “you” is Jeff Bezos.

I was reading up about how much of an asshole Jeff Bezos is, and then became interested in the Amazon story. I thought I would share a bit of it with you all here.

According to Sequoia Capital, Americans spent $4 trillion on retail shopping last year - 95% of which was still done in traditional brick-and-mortar stores. I’m actually a bit surprised by how high this number is. I would have thought that a larger percentage of people would be shopping online.

For me personally, I’d say that my split might be close to 50/50. From furniture to clothes, to even a new bicycle, I buy a lot online, come to think of it. Part of the reason is convenience, but the other reason is that I like having easy access to a broader selection.

About the only thing I really prefer buying in person is groceries. However even there I’ve been exploring ways to regularize shipments of the items I typically buy. I can’t recall where I read it, but I remember seeing something about less than 1% of groceries in America being bought online.

Intuitively, the percentage of online sales is only going to rise, particularly given the shift to mobile. Consumers can now shop anytime, anywhere. Real estate companies and retailers certainly need to pay attention.

But just like the internet didn’t make cities irrelevant, I don’t think it’ll make shopping in person completely extinct. As Sequoia Capital points out in its article, mobile phones are creating new opportunities at the intersection of online and real world shopping.

So while I don’t know what the future online/offline split might be, I suspect that the two worlds will continue to blur together. I might buy a bicycle online, but when it comes time to service it, I’d like to be able to bring it into a store.