Amazon: the E-commerce Success

Amazon has progressed a lot since its small victories as an online bookstore. Since its inception in 1994, Amazon has grown into an e-commerce giant. This success has been going on for years and is partly due to Amazon’s strategic approach to growth. It does not matter where you begin. Any e-commerce company can educate itself from Amazon’s example, develop your business, and allure and get more customers. Here are six main ways Amazon can be so successful: Use them to make your e-commerce business even more powerful.

  1. Meet customer needs

One of the reasons Amazon has evolved from a bookstore to an “all” retailer is its ability to harness the power of referrals. News spreads on the Internet at an alarming rate. Therefore, Amazon is growing by providing customers with a positive experience when they share their experiences with friends and family. This allows new people to come to the Amazon shop, browse product pages, experience and report on their benefits. The key to sustainable growth in this cycle is a customer-centric approach.

 What you can do

We live in an era where people share their experiences online and personal recommendations are more important than brand marketing. Leverage this audience preference and focus on how to make your customers happy. When you do a good job, your customers are more likely to share their experiences. It helps grow your customer base and increase your sales-by lowering customer acquisition costs (CAC) and potentially increasing lifetime value (LTV).

  1. Integrate data analysis into decision making

Amazon is proud of its commitment to innovation and testing. To check every feature of your startup, from costing to product choice, decisions have their basis on consumer requirements, not of your biases. In part, it’s this constant risk of customers switching to competitors that drives Amazon’s innovation. Amazon is the largest e-commerce retailer in all businesses, with 2018 sales of $ 23.289 billion, but Amazon is always competing with other companies. For example, more and more customers are choosing to equip their homes with devices that make modern life more interactive and seamless.

To compete with smart speakers like Google Home, Amazon continues to update the Echo to add more distinctive features. In terms of features, Alexa was one of the earliest versions of Amazon Echo’s voice-launching technology. It is designed for easy connection to the various devices your users are using. Amazon has taken smart speaker technology to the forefront with the announcement of the Amazon Echo Dot and Amazon Echo Show to meet customer needs for connectivity.

What you can do

Be strategic when testing your products regularly and coming up with new ideas to meet your changing customer needs. For example, you can sell a limited edition product to test customer interest, send a customer survey, or use a net promoter score (NPS) survey to find out who and how many promoters are. Perform a B test to accommodate a specific promoter. After all, this is your most valuable customer segment. Combine these efforts to facilitate decision-making and develop innovative products, features, and services based on data.

  1. Get to know your customers

Amazon is always learning from its customers. For example, when a customer searches for a product and adds it to their shopping cart, behavioral data shows trends that identify product preferences and buying behavior. Amazon uses this information to show customers products related to recently viewed items and make recommendations based on search habits. At the bottom of the home page, customers can also view additional recommendations based on recent purchases and recently viewed product history.

All this information is used to personalize the customer’s shopping experience and guide their purchases. Amazon takes it further by checking to see if the selected product ships to the location specified in the customer profile. This is very helpful as it avoids adding the item to your cart just to find that you did not receive the item at checkout. This tactic works because research shows that customers expect a personalized experience.

What you can do

Personalize your customer’s shopping experience. First, add a list of recently searched products by your customers at the bottom of the product page. That way, you can easily access these products and finally add them to your shopping cart for purchase. The home page lists products that customers may be interested in based on their previous purchases. It allows customers to reorder previously purchased products in the customer dashboard that manages profile information. Amazon does this. This allows customers to quickly and easily find what they need and buy it again.

  1. Build a community for your customers

Amazon uses a variety of strategies to build its customer community. One way is to actively encourage new customers to evaluate and evaluate their experience.

This information is added to the customer review list on the product page. These reviews also display a “confirmed purchase” flag, which makes the reviews more reliable.

Amazon provides a section for customer questions and answers at the bottom of the product page, allowing shoppers to ask specific questions. Please ask before buying anything. Past customers offer some answers.  With either option, shoppers can rely on other customers instead of Amazon. Buyers can read honest experiences from other customers and make some of their purchasing decisions based on them.

What you can do

After the customer receives the product and has the opportunity to use it, send an email to the customer. Ask them for a rating. Also, post a review request on each customer’s dashboard so that when you sign up, you’ll be notified to leave a review on your website. As with Amazon, flag reviews to make it clear that the person who bought the item you reviewed is creating the review.

Conclusion

Amazon was first launched in 1994. It took time to experiment and learn to become today’s e-commerce giant. Instead of waiting years to see the results, you can strategically pursue growth. Start with small changes, test and adjust. When you make the changes you make consistent, you’ll see the results over time.