When Amazon was founded in 1994 it started as a bookstore, but has since pushed the envelope to surpass Walmart as the leading retailer in the U.S. Their moto of 'everything from A to Z' shows their product diversity: from Kindles to Fire TV Sticks to laundry detergent, Amazon has it all. Through all of this success, Amazon has stayed focused on several key things that are the secret to their success.
Amazon has continued to push the limits of driving costs out of their supply chain and passing those savings on to their customers. They consistently offers sales, new deals and changing pricing on products millions of times throughout the year. They are always trying to stay one step ahead of other retailers when it comes to price which has been a major key to their success.
Many online retailers look for cost savings to grow the bottom line, but passing cost savings on to the customer, especially for smaller retailers, can lead to long term success.
When retailers were trying to get products to consumers in a week, Amazon was pushing 2 day delivery. By the time retailers began to catch up, Amazon was already two steps ahead offering same day delivery. Amazon has always been in the service of getting the consumer the product as fast as possible and they continue to push the limits when everyone else tells them it can’t be done.
For smaller retailers, it is hard to push the limits the way that Amazon does, especially when it comes to balancing delivery time with excellent customer service. Make the experience meaningful for the customer and push the limits in how you provide service to the customer. Don’t just settle for “in the box” customer service, because Amazon sure doesn’t.
Selection of Product People Need
Amazon was never the first to market with many of their products. Apple was the first with the tablet (iPad vs. Kindle) and the TV (Apple TV vs. Fire TV Stick), but Amazon saw an opportunity to gain market share and took advantage. Amazon.com offers every product 'from A to Z' (hence the logo) and continues to push the limits to develop and sell new products as long as there is a demand.
For average retailers, it is difficult to offer everything 'from A to Z' or develop cool products like the Kindle or Fire TV Stick, but the idea is to be like Amazon; see a need for a product, try to capture market share and then carry it through. Don’t just stick to what you know, but learn about what you don’t know. Look for ways to incorporate the latest trends into your website for an increase in sales.
Focusing on these 3 basic keys is what has lead Amazon to be so successful and can also help even small retailers. While the idea of providing low prices, great service and demanded products is nothing new, the idea of pushing your limit is and that is the true secret to Amazon’s success.