Amazon's meteoric rise can only be compared to one story: Amazon. The company started its journey in 1995 when it only sold books. However, within decades it went on to become one of the largest eCommerce companies. Presently it accounts for more than 44% of the e-commerce sales in the USA.
Do you want to know how Amazon made the impossible possible? Let us try to understand it in this article.
Why And How Only Amazon?
Figures speak for Amazon. The company's sales in the year 2020 reached $386 billion. You will literally be amazed to know that the sales were up by $280 bn against the previous year. That year the net profit almost doubled ($21 bn). Now a general question might crop up:
-How did Amazon achieve such great heights within a short period?
Behind the success study lies some important factors. Let us see them here to get an understanding.
Amazon's success can be attributed to the development of innovative technology and practices. The success of a company in present times bank quite a lot on technological advancement. In the case of Amazon, it was Echo, the voice device.
With Echo, you can play songs and do all kinds of entertainment and knowledge-based research. According to 2017 reports, the company sold over 22 million echos.
2. Customer Services
The customer is the king of the market. This is why the success of a business organization relies quite a lot on customer service. For example, if you are a Real Estate Lawyer or a Motorcycle Accident Lawyer, you need to deliver high-quality services to your customers. From a General Practice Attorney to the world's largest law firm, you try your best to serve your customer. The same goes for Amazon. They continuously worked to address the grievances of the customer.
Amazon's world-class services include helpful tools that facilitate tracking of the goods. It also has quick return or exchange, which elevates the online shopping experience for customers. This is the reason the Customer service team of Amazon won multiple awards for its dedicated services.
Amazon aptly uses the social media platform to engage with shoppers. Together with quality products, they integrated high-quality customer service. Even other smaller companies are trying to emulate the experience of Amazon's quality services.
Amazon started by selling books. But later on, with time, they started selling everything. From nuts to nut bolts, from grapes to graphite pencils- electronics, health clothing- they literally sell whatever you need.
For example, if you are some law firms in Alabama or some firms in California- you can give services on Child labor laws in Texas and other human rights issues. You can also work like the best immigration lawyers or criminal defense lawyers. This is what corporate lawyers do- diversification.
They cater to the different needs of the people and get more opportunities. You might be completely taken aback by the fact that Amazon presently has over 3.6 billion backlinks and over 3.8 million referring domains. It is diversification for you.
4. Outstanding User Experience
When companies use e-buying services to facilitate buying and selling, they try their best to provide an outstanding user experience. As a result, millions of people worldwide are using amazon services for seamless buying and selling. But have you, for a moment, thought that the service never broke down under pressure?
The company has kept a full-fledged team of professionals - from researchers to developers. It is because the ultimate aim of such a service is to ensure a smooth and seamless user experience. So the UX experts of Amazon combine with the engineers so that customers get the best user experience.
5. Sustainable Competitive Advantages
To be successful in your life, you need to find yourself in an advantageous position. Amazon has replicated the mantra. Amazon services have tried hard to keep itself way above the others. But How?
Winning At Scale
Do you think someone can give cheaper than Amazon? It is very difficult. But how does Amazon manage it all? They buy in bulk, and this is the reason they offer products cheaper compared to others. With bulk purchases, Amazon literally earned advantages over the other companies.
Giving The Customers More Than Others
If you sell some medical professionals, could you offer expiry products to your patients? No, certainly not, as this will be treated as medical negligence. Amazon has always been super efficient by dint of quality and timely customer service. This is one deadly combination that takes a company to some different pedestal of commercial success. Amazon, from this angle, can be an example that others could emulate.
6. Sustaining Competitive Superiority
Sustainability includes the steps that companies take so that they are able to reap the benefits in the long term. For example, if you are using plastic for packing, you could replace it with paper or cardboard. This step definitely increases your business. Presently customers are much aware of the sustainability norms. Therefore, they would choose a company over another that conforms to sustainability measures.
When Amazon initiated its market by selling books, it captured around 40% of the US eCommerce market. But when they launched the Echo smart speakers into the market, they captured 75% of the market. Therefore, sustainable competitive superiority is another reason that shaped the success of Amazon.
Closing The Discussion
Amazon is like the vast Amazon in the global business arena. The company brought in various policies that shaped its business success.
At the same time, they brought in sustainability measures, one of the requisites to attain long-term success. Amazon's success story is one of the examples to emulate.
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