Amazon: From a slow start as 'Cadabra' to revenues in the billions

JEFF Bezos founded Amazon.com as an internet book and music seller in 1994 in Seattle.

The company was originally named Cadabra but the name was changed when it was discovered that people sometimes heard the name as "Cadaver".

The name Amazon.com was chosen because the Amazon River is the largest river in the world - and also in part because it would show up near the beginning of alphabetical lists.

Amazon.com started as an online bookstore, but soon diversified into DVDs, CDs, MP3 downloads, computer software, video games, electronics, clothing, furniture, food and toys. Amazon has separate websites in Canada, the UK, Germany, France, Italy, Japan, and China.

Its initial business plan was unusual and the company did not expect a profit for four to five years.

The "slow" growth provoked stockholder complaints that the company was not reaching profitability fast enough. However, Amazon finally turned its first profit in the fourth quarter of 2001: $5 million on revenues of more than $1bn, but the modest profit was important in demonstrating the business model could be profitable.

Annual revenues have grown from $3.9bn in 2002 to $10.7bn by 2006.