In the changing market scenario, it is very tough for an online store to achieve a roaring success. Amazon eCommerce is in more than 40 subsidiaries, massive supply chains and presence in five continents. Amazon has conquered and revolutionized the eCommerce culture. Started as bookselling company 25 years back. Nevertheless, to date, it holds the name tag of the online platform. Many large retail shops and a staggering number of 12 million shoppers a month scout Amazon.
The main success factor of Amazon that makes it omnipotent is the unified brand experience. Amazon provides buyers shopping experience via any device and location. The other key factors include selection, price, convenience easy access to website and door delivery.
Besides an online store, amazon decorates a valuable position of a manufacturer by selling electronic devices. The customer extension features like deep discounts, free shipping and customer-focused initiatives make the amazon a perfect eCommerce player.
The thriving factors that still maintain amazon as a magnificent online store can be summed up as follows
FBA service
Amazon offers its sellers to sell their products on their sites and orders are handled by Amazon. FBA service is an amazing facility given by Amazon for sellers. For all the newbies and corporates, amazon helps to do their selling carefree. Importantly, shipping to the customers, feedback and support.
In amazon, there are two plans for the sellers to sell their products, individual and professional. Individual plan holders will be selling less than 40 products in amazon and more than 40 products for professional. FBA helps the professional as well as the individual sellers in maximising their products sale. Amazon ships their products and collecting feedback from the customers. Also, returns and customer grievances addressed by Amazon. Generally, this process consumes time. So Amazon offers this eminent service and saves time. Sellers can focus on establishing their product and spent most of their time in advertising. For this fulfilment service amazon charges fees from the sellers that is reasonable.
Services offered for the sellers
As sellers are the strong base of the online stores, amazon helps its sellers by providing them with hassle-free facilities. By designing its services to help out the sellers and teach them to think globally. To increase the brand value for the sellers, the online store has put forward these amazing services.
Storefronts
By enhancing small business growth, storefronts have become a new trend in the online market. Also, storefronts are the landing pages that features small and medium businesses without spending much for an independent setup. Being the face for the startups, Amazon has helped the stores to gain trust among the customers.
Launchpad
Since 2015 amazon invites startups globally. This service helps the newbies in the market for a good sales index and early investments. Amazon helps startups and improve their position with higher discoverability.
Handmade
Amazon extended its business to the handmade crafts area in 2015 with modest pricing to its sellers. The store strictly looks for 100% quality handmade and unique crafts for a reasonable price. Started with a seller count of 5000 and 80,000 products. Now, handmade products crossed to a total of 567,775.
Exclusive
Launched in 2015 this program lets the sellers associate with amazon directly. It provides more exposure and backing for their brand by selling its products exclusively through the global online outlet.
Discounts and offers
For its prime member’s amazon offers more discount schemes like free shipping, offers from specific manufacturers and product discounts. To retain their loyal customer’s amazon offers Prime Memberships.
To increase their sales, online sellers provide attractive discounts. Amazon is well equipped with cutting edge analytics capabilities to monitor the prices of products.
Massive budget
The massive marketing budget of the giant online store comes around the eCommerce revenue created by the three US merchants. Amazon has always taken a well-refined view before getting into any new business.
Amazon web series launched in 2006 was an experiment. Today AWS dominates the market with a market share of 34%.
Vast data collection from customers
The extensive data collection of customers is very significant for expanding an online store. Amazon works more on the same to build a major customer database to trigger their reachability.
Amazon collects data of each of its customers like browsing details, search queries, wishlists, reviews and previous order. The data helps with
- product recommendation to customers
- one-click ordering
- anticipatory shipping
- supply chain
- product pricing and
- cloud storage optimisation.
Amazon uses the customer database to study the behaviour that develops the key areas of customer acquisition and retention.
Quality of services
To increase the quality of services, amazon offer services like customer service rating, and SMS feedbacks. Also, Toll-free numbers to address customer grievances. In addition, automation is practised to shorten the response time improves service quality.
From last years report, it was indicated that 87% of the responses provided by amazon was very well satisfied.
Facilities it offers its customers
More or fewer amazon services can be compared to traditional brick and mortar retail shopping.
There are a number of factors that favours the amazons power to establish itself as the broader eCommerce industry.
Vast product selection
With an enormous number of sellers and companies in its list, amazon offers a vast selection of products.
Free returns
To increase customer satisfaction with their products amazon offers free returns. Importantly, customers have the possibility to return products due to incorrect selection or damage.
Low prices
Amazon has changed to the best marketplace to buy your products at the cheapest prices.
Subscription services
By offering the subscription services amazon offers the customers to receive specific products automatically every month.
Amazon Prime
The loyalty program introduced this year that ships the customers their products in one day. Along with the ultimate streaming of Movies, and other amazon prime video services.
Availability and assurance of product delivery
Logistics and shipping are additional sources of revenue for eCommerce companies. As Amazon is very diligent in the end processes. It takes special care of products which ensures services that facilitate one-day shipping to its customers via Prime. The precise management of the inventory helps the sellers to supply goods to the customers in time without fail.
For making the processes simple amazon offers a carefree service to the sellers by FBA (Fulfillment by Amazon). Where Amazon offers all the processes from product collection to till the customer’s feedback and returns.
Addressing customer feedback
Addressing customer feedback is very crucial in online marketing. To improve the customer experience and increase sales, amazon has executed some strategies. Such as automated replies, SMS feedback about the delivery service, personal feedback forms and email surveys.
As the market is becoming more advanced the Personal feedback forms and email surveys have restored with generic customer reviews and live product conversations for more fruitful output.
Online market place
The core of successful online market place is the essential buying and selling of the products and services online. Amazon prioritizes its sellers and retailers as they have a major role in its growth. Amazons success has to lead many retailers to diminish from the market. But on the other hand, some companies utilised the situation creatively and effectively by joining the Amazon marketplace.
According to a study in 2018, 58 % of its annual merchandise value of products is through the eCommerce. This facility allows retailers to expand their online presence.
Final Thoughts
Foreseeing the market swings and adopting new innovations is the key factors that help the online markets. Amazon always embraced innovations and market changes. Survived the most adverse situations with more confined strategies by prioritizing the customers at its main index.
