Today, Amazon is valued at around $1 trillion, making it one of the largest companies in the world. What started as a convenient way for people to buy and sell books online has become a global enterprise that isn’t slowing down anytime soon.
People use Amazon for everything from groceries to watching movies, and yes, they also emerged as the largest book retailer in the world many years ago. They have successfully expanded into countless other niches including smart televisions, tablets, smartphones, pharmaceuticals, and audio devices just to name a few newer niches.
So why is Amazon so successful? Consider the points below to learn more about the Amazon.com business model strategies for success.
1. They Sell Just About Every Product You Can Imagine
If you need any product, nine times out of ten you can get it on Amazon. The company has steadily increased its offerings over the years and has entire departments dedicated to providing the best products.
Many people today do their entire Christmas shopping on Amazon. They sell everything from electronics, toys, and car parts to books, clothing, and fresh, organic groceries. Amazon doesn’t just stop at offering these products, they always seek to optimize the experience and become the best in the world in that area of retail.
For instance, Amazon has sold clothing for years, but now they have a subscription service you can take advantage of that will dress you each week. You pay a monthly fee, and Amazon will send you wardrobe items each week. You will get the boxes in the mail and can wear these items up until the return date.
If you keep them after the return date, you’ll get charged the price and they’re yours to keep. If you send them back, you won’t get charged and can then check out other wardrobe items.
Since Amazon.com offers all of these items, every demographic is served, and they create a convenient shopping experience that is unrivaled.
2. Customers Love the Speed of Prime Shipping
Amazon takes its customers’ needs seriously, which is why they stand above several other companies. Prime shipping has revolutionized online shopping and is the main draw of the Amazon platform.
With a Prime subscription, shoppers won’t have to pay shipping fees for the items that they order. They also get access to the fastest shipping times. With Prime shipping, your order will arrive anywhere between within 2 days to same-day shipping.
Since it is so fast, you won’t have to inconvenience yourself fighting traffic and making a trip to the store for something that you can get on Amazon almost as quickly.
3. The Return Process is Free and Seamless
Customers hate haggling over returns. Amazon makes the return process as easy as pie since you can return your item in the same box you got it.
You can simply log on to your account and process a return. From there, you will get a shipping label and can drop it off to get sent back to a fulfillment center or partner store like Kohls and Whole Foods (which they own now). This happens at no charge to you, and your card will be credited for the refund within a few days. Since you don’t have to haggle or wonder whether a return will go through, you will feel more comfortable placing orders on the Amazon platform.
4. They’re Constantly on the Cutting Edge of Innovation
The real area that Amazon wins is that they’re always trying to do more and provide more services. For instance, people that sign up for Prime Shipping automatically receive a Prime Video account, which lets them stream movies, documentaries, and original TV programs. It now even allows people to enjoy Amazon Prime memberships when shopping on other ecommerce websites.
The company branched out into PO Boxes with its Amazon Locker services. They revolutionized food delivery with their partnership with Whole Foods, and are consistently looking for new and different industries to get into. Whenever Amazon pushes some form of innovation, it quickly becomes part of our everyday lives and way of doing business.
5. Their Prices Are Very Competitive
With Amazon, you can always count on the fact that you are getting the most competitive prices. There are several stores and product providers in every category that are competing for the Buy Box.
As such, you will almost certainly pay less than what you are getting in a lot of brick and mortar outlets. This is especially the case for certain gadgets and tech items. Since you will have more options as you shop, you will typically save plenty of money on your Amazon product purchases.
6. Amazon Offers Plenty of Entrepreneurship Opportunities
People also love Amazon because it provides plenty of opportunities for people to become sellers. Whether you ship items directly or use the Fulfillment by Amazon (FBA) program, several people have built entire enterprises on the back of the powerful Amazon platform.
Authors that used to have to find an agent and shop for a book deal with a publisher can grow wealth self-publishing through Amazon. This creates jobs and stimulates the economy in so many different industries. Amazon also happens to have a powerful search engine, which gives people more reason to use it to grow their brand and sell products.
7. Customer Service is Responsive and Helpful
Finally, people appreciate Amazon because the customer service is so responsive and helpful. Whether you process an automated return, chat with customer service, or get someone on the phone, the company is good about fixing issues quickly and completely.
This makes people want to do repeat business over the years and adds to Amazon’s credibility. As you can see, when you study the Amazon business model, there are some important lessons you can take with you.
Why is Amazon So Successful?
So why is Amazon so successful? The points above show exactly why Amazon is one of the biggest companies in the world. No matter what industry you are in, it pays to use Amazon as a case study for success.
Now that you know why Amazon is so successful, you can apply their applicable winning strategies to your own business model. Consider these tips and check back with us to learn more about business and ecommerce.