Jeff Bezos Shares the Origin of Amazon Prime on a Podcast

During a recent podcast appearance, Amazon founder Jeff Bezos discussed the origin of Amazon Prime, the company’s popular subscription-based loyalty program. Bezos explained that most innovations within the company involve a collaborative process, with employees building on each other’s ideas and overcoming objections. The concept of Prime was initially proposed as a potential loyalty program.

According to Bezos, a junior software engineer came up with the idea of an “all you can eat buffet of fast free shipping” rather than a traditional loyalty program. He admitted that the program was costly at first, as heavy users took advantage of the free shipping offering. However, over time, the company saw positive trends as a wider variety of customers began to appreciate the service. This conversation highlights the importance of collaboration and innovation in driving the success of Amazon Prime.