When we think about Amazon, we think of its amazing and fast services. We think about getting access to remote products conveniently at our doorsteps. More importantly, when we think about Amazon, we think about great customer service and hospitality.
Amazon is a mammoth when it comes to its relevance in the eCommerce industry. Back in 2008, Amazon generated a whopping $232 billion from retail operations in the U.S. and abroad and sold 564 million products alone. Fast-forward to now, Amazon’s revenue has almost doubled itself from $177.9 billion in 2017 to $232.9 billion in 2018.
Amazon Financial Summary-
For those of you who live under the rock and don’t know what Amazon is, let me brief you.
Amazon.com is an American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. Amazon has even been referred to as “one of the most influential economic and cultural forces in the world“, as well as the world’s most valuable brand, making its owner Jeff Bezos the wealthiest person on earth.
So, how did Amazon reach the pinnacle of success?
To answer this question, popular business development expert Hirav Shah brings you 4 major reasons behind Amazon’s astronomical success in the eCommerce market:
1- Efficient customer service
Amazon treats its customers like kings and queens. The company provides a 100% commitment to their service, and we love that!
Every move that they make is well-thought-out and is centered towards improving their already flawless customer service. Disclosing companies long thought out goals, Bezos had said, “The most important single thing is to focus obsessively on the customer. Our goal is to be Earth’s most customer-centric company.”
Amazon has bagged multiple awards for its efficiency in preventing and swiftly resolving customer problems. One of Amazon’s overarching missions is to become the planet’s most customer-centric company—and the brand’s commitment towards this ambition has paid dividends.
2- Personalized shopping experience
Customers love being handed out the product with a hassle-free browsing experience. That is why Amazon is a zenith for many people. Using browsing and purchase history and shopping behaviours, the eCommerce leader has successfully customized the user experience. This makes window shopping a whole new experience with endless possibilities to choose from.
If you are thinking of starting an eCommerce website or already have one, make sure that you have a customer-focused approach, a core part of your company’s objectives. You can do that by developing products and services based on individual preferences.
Value customer feedback and keep on improving your service. Surely, people will keep coming, wanting for more.
3- Affordable prices
Price has always been an important factor in providing a wholesome shopping experience. No one likes to overpay and Amazon is well aware of it. So they have come up with an intelligent pricing mechanism termed as ‘Buy Box’.
To be eligible for a Buy Box win-which ensures 85% of the sales for that specific item, sellers would have to significantly lower their price point. This serves as a win-win situation for both buyers and sellers.
4- Product reviews
In today’s world, nobody wants to purchase without knowing what he/she is buying. Research reveals that 45% of the customers read reviews before making a purchase. That is why having an excellent review mechanism in place is extremely important.
Well, Amazon has worked on that as well. The company was one of the first websites in the market to introduce a review system in 1995. Since then, they have improved and added new features to the review system. This significant change has awarded them with an extra $2.7 billion every year.
Amazon has been a pioneer in the eCommerce business for decades by constantly reinventing itself and learning from its errors. The eCommerce giant has truly revolutionized the way we shop nowadays.
They have effectively managed to build a customer paradise, leaving behind tons of other sites in the back.
It’s safe to assume that with a current market share of 50% in the United States and growing, this E-Commerce giant is here to stay for a very long time-opines Hirav Shah, an expert in Business enhancement and escalation.