2001: Here’s why we’ve started cutting prices Starting in 2001, the company started lowering prices on goods. The “loop” he mentions below will be covered in MBA classes for decades: “Focus on cost improvement makes it possible for us to afford to lower prices, which drives growth. Growth spreads fixed costs across more sales, reducing cost per unit, which makes possible more price reductions. Customers like this, and it’s good for shareholders. Please expect us to repeat this loop.”
Source: The smartest things Amazon’s Jeff Bezos has said in the last 20 years – Business Insider