Why is amazon so successful

Similarly, they were one of the first stores online to offer the option of having overnight delivery at a reasonable price. This tactic tackled the problem of online shopping which is that you must, of course, wait for the product to arrive , and that can be infuriating for the consumer.

By offering overnight shipping at a reasonable price, they could acquire customers who would otherwise go to a physical retail store because they were unwilling to wait for the usual 3-days. Any eCommerce business owner knows the customer service is the most crucial factor in your success.

While before the internet a single person might only tell a few of their friends about a bad shopping experience, with the advent of social media they can quickly tell thousands — even for small businesses. This fact makes online stores especially susceptible to reputation damage from scorned customers, making fantastic customer service vital to your continued success. Amazon has succeeded in this realm, offering fast and informative customer service to its customers at any time of day across the entire globe.

Throughout the life of Amazon, they have guided the company through tough financial times, volatile stock prices and reputation damage, coming out the other side stronger than ever. Finally, Bezos himself would argue that the main reason why Amazon is so successful is that they have a culture of innovation that allows employees to create without fear of failure. Here, we are going to explain what makes Amazon the brightest star in the sky.

Since its launch, Amazon has come a long way from its modest start as an online bookseller to a global ecommerce giant. Amazon was founded by Jeff Bezos on July 5, At 30 years old, Bezos decided to quit his job and launched an Internet company. He was making a bet on his son, as was my mother. So, I told them that I thought there was a 70 percent chance that they would lose their whole investment, which was a few hundred thousand dollars, and they did it anyway.

When Bezos launched Amazon, his business plan was to sell books for a reasonable price online and introduce competition to the existing retail book market. Over time, the company started to receive emails that customers would like to purchase CDs or DVDs in the same way.

Eventually, Jeff Bezos made a decision to expand his retail business. In the company introduced Amazon Associates Affiliate program that helps website owners, content creators and publishers, using link-building tools to direct blog readers to products on Amazon platform.

When customers click on the links and purchase products from the marketplace, website owners and bloggers earn referral fees. In the s Amazon became a marketplace opened to third-parties. At the beginning of the new millennium, any merchant could start selling their products on Amazon by paying a fee and complying with the quality standards. Amazon is well-known for its organizational efficiency and a broad range of goods and services.

Amazon is at the zenith of success now due to providing each customer with a personalized shopping experience. The ecommerce leader uses a customized approach to address the needs of the customers, making them feel special and giving such focused attention. Effective use of ecommerce analytics helps Amazon advertise more products, sell more items, and personalize customer shopping experiences. Amazon takes personalization further by notifying customers if a chosen product is available.

When a customer gets back to the store, the website identifies his personality and remembers what the client has bought. One of the reasons why Amazon is so successful is due to its customer-focused approach. Amazon has always worked hard on making things as seamless and user-friendly as possible. Thus, when Amazon started looking at expanding its offerings, they decided to send an email to 1, random customers and ask their opinion.

You should show the value of your products to the customers and collect feedback regularly to find out the preferences of your clients. The use of a quality CRM customer relationship management system can help you to put customers at the center of sales strategy. Many websites neglect to test features of their stores and, as a result, are losing money.

Amazon prides itself on its dedication to testing. Amazon runs tests each month and tests every feature of their business, from product selection to checkout.

And I love that. Test your products regularly. Surely, Amazon is also a pioneer here. The company was one of the first on the market to introduce a review system on its website in Since that time they have improved and added new features to the review system.

The majority of companies send emails asking for reviews of all purchased products together. Amazon sends different emails for different products, even if you bought several products at the same time. After your customers receive the products, send them emails asking to rate and give feedback. Product reviews can provide useful insights into your present product range, so you can constantly change and improve your offerings.

Suggest rating the product from 1 to 5 stars, and leave your feedback. You can also encourage your customers to send photos of purchased products. Reviews with photos and videos describe products better than those that are text-only. As an organization, Amazon is hungry for growth, which is incredible for a company of its size.

For many companies, the hunger for growth and innovation tones down as they get bigger. However, that isn't the case with Amazon. The company is always looking for organic and inorganic opportunities. Amazon also looks for new product lines where it can offer a better value proposition than the incumbents. In , Amazon ventured into professional beauty products. The mere announcement triggered a sell-off in stocks like Ulta Beauty and Sally Beauty. Successful companies have visionary leaders. While Musk and Bezos aren't the best of pals , both of them are visionaries.

They helped their companies become successful. Bezos's leadership has been crucial in guiding Amazon's growth. Like Tesla, Amazon has a singular focus on growth with a little eye on the bottom line. Once a company creates a proposition that customers love, profitability eventually follows. While Bezos didn't invent e-commerce and Musk didn't invent electric vehicles, they bet on the opportunity despite being ridiculed. Thanks to Tesla's and Amazon's, their competitors want to imitate them. Every automaker is investing heavily in electric vehicles and most retail companies are betting on e-commerce.

However, Amazon has a lead over other retailers due to its first-mover advantage.