Why is Amazon So Successful? (Some Replicable Strategies)

What is the first thing that comes to mind when you picture Amazon? According to many, it is the company's amazing capacity to adapt and expand in ways that other firms cannot. But why is Amazon so successful? In this article, we will discuss some of the reasons for its success as an online store and provide advice on how to replicate its strategies.

Amazon.com launched on the World Wide Web in July 1995 under the name Cadabra. In 1999, the site's approach shifted from retailing books and hand tools to focusing entirely on third-party sellers. Amazon had already surpassed $1 million in sales at that point. The eCommerce behemoth announced on its 20th anniversary in 2015 that it had made more than $100 billion in sales.

This is a big deal for any company. Still, it is especially impressive for Amazon because it did this while selling everything from books and other physical goods to electronics and furniture. Read on for more information about why Amazon is so successful.

Table Of Contents

Competent Management

The management team of Amazon and its CEO Jeff Bezos are the first and most important factors in the company's success. They manage it differently than the majority of other firms. Jeff Bezos, who formerly worked for an investment firm and has always been highly talented, did not accidentally end up being the CEO of Amazon. Additionally, he made some excellent recruits, which led to the development of a highly qualified group of senior managers that have guided the firm from the top.

Senior management is essential to Amazon's success since a company can rarely accomplish anything without it, and a group rots from the top down.

Over the course of Amazon's existence, they have led the business through challenging economic periods, erratic stock prices, and reputational damage, emerging from each situation stronger than before.

The Innovative Culture At Amazon

Amazon is undoubtedly one of the most inventive online stores. While other businesses have accumulated billions of dollars through online sales, Amazon's success began with only books. The launch of the Kindle increased Amazon's popularity. Business Insider reports that the corporation is releasing a number of new cutting-edge products and services, including Amazon Locker and Amazon Flow.

Amazon has a culture of the invention that encourages people to create without concern for failure, according to Bezos, who believes that this is the primary reason for the company's success. On the other hand, many of their competitors are afraid of adopting new strategies that can spend money and think it would be crazy to try a creative strategy unrelated to their primary company concept.

According to Amazon, this craziness has enabled them to surpass every other firm in history and become the most prosperous company ever.

Exceptional Customer Service

Amazon's Customer Service staff has received numerous awards for preventing and quickly resolving customer problems. Being the most customer-focused firm on the planet is one of Amazon's main objectives, and the brand's commitment to this objective has been fruitful. By examining its customer service, you might discover a lot about Amazon.

The business is known for being customer-focused, and this trait is evident in every element of how it conducts business. Amazon has long placed a high priority on providing exceptional customer service. Bezos wants to concentrate on the company's customers rather than its competitors, and this philosophy appears to be effective. Amazon has a properly organized customer service page that makes it simple and quick to find the information required.

A Wide Variety Of Products

Amazon offers a wide range of product categories, offering to a wide range of customers. All of the following product types are available for sale on Amazon and through Amazon's third-party sellers:

Appliances
Arts, Crafts & Sewing
Apps & Games
Fine Art
Baby Items
Fashion
Electronics & Kindle
Jewelry
Garden & Outdoor Living
Grocery
Automotive Parts & Accessories

Regular Discounts And Affordable Prices

Amazon has found great success because it can provide its customers with the lowest pricing. It utilizes its scale to decide which goods are worth putting on sale, and it then makes sure they are priced reasonably so that you can purchase them for the lowest possible price. Since many individuals only purchase items once before moving on, the business also uses data from previous sales to determine which products are most likely to sell well (or deciding not to).

On their website, Amazon often offers discounts across most of their product categories.

eBook Deals
Lightning Deals
Today’s Deals
Warehouse Coupon Deals
Watched Deals
Subscribe & Save Outlet Deals

In addition to providing free shipping for Prime members, Amazon also has a subscription program called Subscribe & Save that enables customers to access discounted prices on a selection of items each month without having to pay additional fees each month if they sign up for a 3-month or 6-month subscription.

Amazon Develops Products Based On Customer Reviews And Ratings

Amazon creates products based on customer reviews and ratings. In fact, customer reviews are so crucial to Amazon's success that they have worked with some companies (like TripAdvisor) to supply them with research tools, allowing them to use this data to better their services to customers in the future.

This feedback enables prospective customers to evaluate the utility of purchase by looking at the comments of other customers, in addition to offering a way to completely understand customers' perceptions of the brand and evaluate their satisfaction with merchants.

Customer reviews are an important component of the customer experience since they assist in identifying product faults before they affect customers: You wouldn't know if customers weren't happy with your product until after the sale day when it would be too late if there were no critical comments about it on other websites or social media platforms.

Bottom Line

Amazon has an established history of success. The firm has been in existence for almost 25 years. It has reached several milestones, from its initial purpose of selling books to its current position of accounting for over 10% of all retail sales in America. This indicates that Amazon is one of the most important firms on the planet, and its impact will only increase as it enters new areas and technology.