The CEO insists that bigger companies need to take bigger risks
Amazon CEO Jeff Bezos has called the failure of the Fire Phone which cost the company hundreds of millions of dollars a "tiny little blip."
He said that Amazon will continue to take risks, "If you think that's a big failure, we're working on much bigger failures right now. And I am not kidding," he told The Washington Post.
The mid-spec low-cost phone sold poorly when it was launched in 2014.
Mr Bezos added that "the size of your mistakes needs to grow" along with the scale of the company.
Amazon's approach means that it is willing to take on more failed projects in its search for new innovations.
"The great thing is when you take this approach, a small number of winners pay for dozens, hundreds of failures. And so every single important thing that we have done has taken a lot of risk taking, perseverance, guts, and some of them have worked out, most of them have not.
"That has to happen at every scale level, all the way down, and you have to take shots ... you always learn something and you move on," he added.
Other notable failures from the company include holiday booking site Amazon Destinations, and auction site, Amazon Auction - the CEO has often frustrated investors by eating into the company's bottom line by pumping money into ambitious new projects.
He has referred to Amazon as "the best place in the world to fail."
The approach as also led to big success stories such as its lucrative web services and cloud computer offerings.