So Why is Amazon so successful? This is a great question and one I’ll enjoy answering.
It isn’t easy to believe that back in the 90s, Amazon only sold books. Just a few months after Amazon launched, they were already shipping to well over 40 countries.
Today, Amazon is one of the world’s most successful eCommerce platforms, and there are no signs of this changing anytime soon.
If you are considering signing up as one of their online sellers, it helps learn everything you can about the platform.
In my opinion, there are several different reasons why Amazon is so successful.
Let me take you through them.
What Makes Amazon Unique?
This is a question I often hear from students, family and friends.
If you are a consumer, rather than a creator, you’ll probably see Amazon in a very different light to me.
Here is why I think Amazon is so incredibly unique.
A Progressive Mindset
If there is one thing that Jeff Bezos brought to the table, it’s innovation.
Technological advancements and innovative practices put Amazon ahead of the curve.
The Echo voice command device is an example of how investing in technology early on can set you apart from your competitors.
Amazon understood that voice was becoming big; they have enough capital and power to test almost any product/market idea.
This means that although not every one of Amazons products/services will be a success, some will hit it out of the park.
Another example is the Amazon Dash Button; this helps customers instantly order necessities for their homes.
When consumers have a device that is directly linked to Amazon right in their homes, why would they shop anywhere else?
As for what’s next, I am sure Prime Air, Amazon’s drone delivery service, will make some waves in the eCommerce space soon.
A Diverse Range
There are several online stores out there, but not many can sell such a diverse range of products and still excel. Whether you want to purchase books, health supplements, clothing or electronics, you will find it all on Amazon.
This is another factor that makes this platform so unique, their product range increases at a pace that no one else could keep up with.
This is not the only area where Amazon diversified, though. The platform partners with many other businesses and platforms to expand their reach.
Shrewd acquisitions have helped them capture more and more market share, recent examples of these being Whole Foods, Zappos, and Twitch Interactive.
There is probably quite a lot that you don’t know about Amazon; you’ll see what I mean here.
What is Amazon Best Known For?
Looking at the factors that Amazon is best known for, I feel that these areas play a leading role in their overall success.
Amazon is customer obsession; that’s their sole focus. It’s simple but industry-changing.
Of the many things Amazon excels at, customer service is definitely near the top of the list. Their commitment to customer service has seen them develop a range of helpful tools that make it easier for staff to assist customers.
Their list of awards and accolades is beyond impressive, but it makes sense considering the brand aims to become the world’s most customer-centric company.
Along with their general customer service department, you can tell a lot about how much Amazon values service by browsing their social media accounts. They are always engaging with customers, regardless of whether they are satisfied or not.
One of the key reasons Amazon is so successful is that they made customer service an essential part of their foundation.
Customers know that when they make a purchase, they can expect excellent service. If they don’t like the product, they can send it back and get their money back.
The Customer Experience
Most of the time, Amazon works like a well-oiled machine. Their processes have been refined to ensure customers have a superior experience – leveraging distribution centers across the globe is just one part of this.
The Amazon platform itself is also designed with UX in mind. Making a purchase online should be a pleasant and straightforward experience. In doing this, Amazon keeps sellers in business and customers coming back for more.
Amazon’s UX teams are made up of engineers, marketing executives, and product managers, all of whom collaborate to create the platform you see today.
It doesn’t stop there, though. People often wonder why Amazon Prime is so successful. This ties in directly with the customer experience.
Amazon Prime is just another way that Amazon enhances customer experience, do you know of any other company that can provide you with a broader range of products at this speed? I think not.
The better a customer’s experience is, the more loyal they are to a brand or platform.
Just look at the growth of prime customers.
Now, let me get down to the core reason why I think Amazon is such a huge success.
Why Is Amazon So Successful?
As an online business owner, I often turn to our time’s greatest business owners for inspiration and advice, and Jeff Bezos is one of them.
Back when Amazon first started, Jeff Bezos was clear that investors shouldn’t expect to see a return for quite some time.
He understood that building a successful business wasn’t going to happen overnight, but he was “in it to win it”, and he still is today.
This is why I feel Amazon is successful as it is today.
Jeff Bezos is a true leader and a visionary, he has surrounded himself with the right people and been very clear about what he wants to achieve.
Amazon only posted its first profit in 2003, but look at where they are today.
How Did Amazon Get Big?
Even though Amazon only saw a profit for the first time in 2003, they were named the biggest online sales platform in the world back in 1999.
Amazon is the size they are today because they started selling more than just books. They took a chance and decided to offer a little bit of everything to everyone. All the while, they were focusing on providing a superior customer experience.
In the early 2,000s, though, they decided to take things one step further in the name of growth – they opened the platform up to third-party sellers.
Instead of growing all on their own, they provided entrepreneurs with the ability to sell products to an audience that was loyal to the Amazon brand.
What Makes Amazon the Most Money?
Even though Amazon is best known for retail, it isn’t the most profitable part of their operations.
Amazons most significant source of operating profit is their cloud computing side of the business.
Their retail division brings in the most revenue, but in terms of profitability, Amazon web services lead.
In terms of retail in October 2020, Amazon’s North America segment saw the most profit, and by November, Amazon had a market cap of $1.6 trillion.
Why Did Amazon Fail in China?
Amazon was operating in China at one point, but after facing stiff competition from platforms such as Alibaba, they decided to shut down this marketplace.
While I believe this is the main reason they failed in China, others suggest it’s because they couldn’t adapt to local tastes.
This included the design of the platform itself as well as the product and price preferences of consumers.
Is Selling on Amazon Worth It?
Amazon keeps going from strength to strength with their ongoing innovational efforts and dedication to the user experience; this is, by far, one of the best platforms to start an online business.
Take it from someone that’s been there and done it.
If you are interested in building and scaling an Amazon business, you can learn more about how we started here.