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Abstract Amazon.com has been through several stages of development: first as a cyber‐bookstore, then a cyber‐market, and now an Application Service Provider (ASP). I apply the concept of “business ecosystem” to describe the evolution of Amazon.com, and highlight the role of web services in the shaping of its ecosystem. The company plays a central role in the ecosystem, working with a network of partners to bring products and services to customers. By continually trying to improve the health of its ecosystem, Amazon ensures its own survival and prosperity. The mechanisms through which Amazon has created its ecosystem are discussed and ideas for firms looking to create analogous business communities are advanced. Copyright © 2009 ASAC. Published by John Wiley & Sons, Ltd.
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