5 Smart Business Lessons You Can Learn From Amazon

Take a page from Amazon's book -- of core values. 

Amazon isn't just an online store, it is one of the world's leading technology companies. The success of the company can be attributed to a range of components, but its key ingredient has been ensuring that every employee holds fast to its leadership principles. These principles have helped shape the company into what it is today and enabled it to stay ahead of the competition. 

Amazon leadership principles

Amazon's leadership principles describe how it does business, how its leaders lead, and most importantly, how it focuses on the customer. These principles are a big part of its culture and how it conducts day-to-day operations. For years, Amazon had 14 principles. In 2021, after Jeff Bezos stepped down as CEO to focus on his other ventures, the company added two more principles to its list. Here is the current list of principles:

1. Customer Obsession
2. Ownership
3. Invent and Simplify
4. Are Right, A Lot
5. Learn and Be Curious
6. Hire and Develop the Best
7. Insist on the Highest Standards
8. Think Big
9. Bias for Action
10. Frugality
11. Earn Trust
12. Dive Deep
13. Have Backbone; Disagree and Commit
14. Deliver Results
15. Strive to be Earth's Best Employer
16. Success and Scale Bring Broad Responsibility

These last two were added in 2021, bringing the total to 16. Here are five smart business lessons you can learn from these principles, as well as how you can apply them to your organization.

1. The Customer Obsession Principle

Amazon's first core principle is customer obsession. This means the company puts its customers first in everything it does. It focuses on understanding customers' needs and providing them with the best products and services possible. It also takes feedback seriously, as customer feedback helps shape the company's direction. 

When it comes to customer service, focus on providing your customers with a great experience that goes above and beyond. This will help you build a loyal customer base that trusts your brand and keeps coming back for more. 

2. The Ownership Principle

Taking ownership is important for every Amazon employee. This means employees are encouraged to take initiative and responsibility for their work, which allows them to be creative in their roles and come up with innovative solutions to problems. The ownership value encourages employees to think beyond their job titles and take on new challenges. 

When you are hiring employees, you want to hire people who act and have the mindset that they too are owners of the company. This will make them more motivated, which helps foster an environment of innovation within the company.

3. The Invent & Simplify Principle

Amazon encourages employees to find new ways of doing things that are more efficient or effective than existing methods. This not only helps Amazon become more productive, but it also helps create new products or services that can benefit customers. Try not to get stuck on old ways of doing things; instead, look for new opportunities or ways to improve existing systems. 

Amazon has done this throughout its history from launching the Kindle e-reader to introducing same-day delivery services, and this willingness to innovate has paid off big time. There are always new ways of doing things and by being proactive and finding efficient solutions, you will be able to stay ahead of your competitors. 

4. The Hire and Develop the Best Principle

You can't have a great organization without great people. That is one of the reasons why Amazon has become the company it is today. The cornerstone of success in any business lies in its people. Investing resources into seeking out the most talented individuals will pay dividends when it comes to performance and growth. It is also just as important to provide development opportunities to ensure each employee grows as an individual but also provides continual contributions that benefit the entire organization.  

5. The Deliver Results Principle

Amazon got to where it is today not because its leaders had great ideas, but because they got things done. Leaders know how to deliver results, the ultimate goal of any business. They know how to focus on and pinpoint the key inputs required for successful results and they make sure they come out with the best quality and in a timely manner. It is important to understand that delivering results requires perseverance. 

You don't want to shy away from obstacles and failures; rather, you want to take them head-on as an opportunity to prove your capabilities. Every setback is an opportunity for growth and improvement. You will need to remain motivated and determined, not allowing yourself to become complacent or settle for "good enough.” 

Amazon has become one of the most successful companies in history thanks in large part to these core values. By focusing on understanding customers' needs and taking initiatives for its work, employees have been able to come up with innovative solutions that have helped keep Amazon ahead of its competition. As one of the world's most successful businesses, there are a lot of lessons you can learn from Amazon's approach toward innovation-driven success.