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The company was founded in 1994, spurred by what Amazon founder Jeff Bezos called his "regret minimization framework, " which described his efforts to fend off any regrets for not participating sooner in the Internet business boom during that time.[21] In 1994, Bezos left his employment as vice-president of D. E. Shaw & Co., a Wall Street firm, and moved to Seattle. He began to work on a business plan for what would eventually become Amazon.com.
Jeff Bezos incorporated the company as "Cadabra" on July 5, 1994.[12] Bezos changed the name to Amazon a year later after a lawyer misheard its original name as "cadaver".[22] In September 1994, Bezos purchased the URL Relentless.com and briefly considered naming his online store Relentless, but friends told him the name sounded a bit sinister. The domain is still owned by Bezos and still redirects to the retailer.[23][24] The company went online as Amazon.com in 1995.[25]
Bezos selected the name Amazon by looking through the dictionary, and settled on "Amazon" because it was a place that was "exotic and different" just as he planned for his store to be; the Amazon river, he noted was by far the "biggest" river in the world, and he planned to make his store the biggest in the world.[25] Bezos placed a premium on his head start in building a brand, telling a reporter, "There’s nothing about our model that can’t be copied over time. But you know, McDonald’s got copied. And it still built a huge, multibillion-dollar company. A lot of it comes down to the brand name. Brand names are more important online than they are in the physical world."[26] Additionally, a name beginning with "A" was preferential due to the probability it would occur at the top of any list that was alphabetized.
Since June 19, 2000, Amazon’s logotype has featured a curved arrow leading from A to Z, representing that the company carries every product from A to Z, with the arrow shaped like a smile.[27]
After reading a report about the future of the Internet that projected annual Web commerce growth at 2, 300%, Bezos created a list of 20 products that could be marketed online. He narrowed the list to what he felt were the five most promising products which included: compact discs, computer hardware, computer software, videos, and books. Bezos finally decided that his new business would sell books online, due to the large worldwide demand for literature, the low price points for books, along with the huge number of titles available in print.[28] Amazon[29] was originally founded in Bezos’ garage in Bellevue, Washington.[30]
The company began as an online bookstore, an idea spurred off with discussion with John Ingram of Ingram Book(now called Ingram Content Group), along with Keyur Patel who still holds a stake in Amazon.[31] Amazon was able to access books at wholesale from Ingram. In the first two months of business, Amazon sold to all 50 states and over 45 countries. Within two months, Amazon’s sales were up to$20, 000/week.[32] While the largest brick and mortar bookstores and mail order catalogs might offer 200, 000 titles, an online bookstore could "carry" several times more, since it would have a practically unlimited virtual(not actual) warehouse: those of the actual product makers/suppliers.