It’s no secret that Amazon is a global powerhouse that revolutionized eCommerce. But have you ever wondered what makes Amazon so successful? There are a few secrets that business owners can take away and apply to their online shopping experience.
In 2005, Amazon launched a membership program called Amazon Prime. Since its launch, Amazon Prime has become one of the most popular shopping memberships available, with an estimated 200 million members worldwide as of 2020.
Here we'll look at six things you can learn from ecommerce from Amazon Prime. Whether you're just getting started in the online retail space or looking for ways to improve your business, read on for valuable insights that could help your digital storefront.
6 Things You Can Learn About eCommerce from Amazon Prime
1. Meet The Needs Of Your Customers
Amazon has built a reputation as one of the most customer-centric companies in the world. Their business model is designed to provide customers with an exceptional experience at every touchpoint, from when they browse the Amazon website to when their package arrives on their doorstep.
What You Can Do: A positive customer experience is essential for any business. Not only do happy customers provide valuable word-of-mouth advertising, but they are also more likely to come back and spend more money in the future.
Attracting new customers can be a costly investment. However, once you’ve made that initial investment, it’s essential to focus on maximizing sales to lower your Customer Acquisition Costs (CAC) and boost your Lifetime Value (LTV).
Increasing the amount each customer spends can offset the costs of acquiring that customer and ultimately increase your profits. Simply put, if you invest in a good customer experience up front, the benefits can be reaped in sales later on.
2. Use Data Analysis In Decision Making
Amazon focuses on what its customers need rather than what they think they want. Which is one of the company's key differentiators. Amazon understands that customers' needs are constantly changing, and they are always looking for ways to improve the customer experience.
Amazon has become a household name because it can collect data about its users and use it to inform their decisions. It can see popular products by tracking what users search for, what they click on, and what they buy. They use this information to make informed decisions about which products to stock and how to improve their products.
What You Can Do: To ensure that your products meet customer needs, it’s important to develop a testing strategy. This should include both pre-launch and post-launch testing.
Pre-launch testing allows you to assess whether your product is ready for market and identify potential issues. This can be done through surveys, focus groups, or beta testing.
Post-launch testing helps you to gather feedback from actual customers and ensure that your product is meeting their needs. This can be done through customer satisfaction surveys, user interviews, or social media monitoring.
By developing a comprehensive testing strategy, you can be confident that your products will meet customer needs and exceed expectations.
Testing new features and collecting user feedback make products relevant and appealing to users. As a result, data collection and analysis play a vital role in the success of any company.
3. Start A Subscription Model
Amazon's subscribe and save feature lets customers subscribe to receive their favourite items regularly. Customers can choose how often they would like to receive their items, and they can cancel their subscription at any time. This feature helps Amazon customers save time and always have the needed items.
Amazon also bases their suggestions on what products its customers might need based on their purchase history.
One of the key benefits of subscription models for merchants is their income and cash flow predictability. Rather than relying on customers to make one-off purchases, they created a model for recurring payments. This can make it easier to budget and forecast future earnings and provide a more stable income stream.
What You Can Do: This is a great service for busy families or anyone who doesn't want to worry about remembering to reorder their essentials. Subscription models can help to build long-term customer relationships.
Customers committed to a recurring payment will likely be more loyal and engaged with the merchant, leading to repeat business and referrals. For these reasons, subscription models can be attractive for merchants looking to grow their businesses.
4. Offer Recommendations
One way Amazon provides an individualized customer experience is through its recommendation system. This system considers users past behaviour - such as purchased items, items browsed, and rated - to deliver personalized recommendations.
What You Can Do: Add functionality like "frequently bought together" or "customers who bought this item also purchased" to your website experience. These functions are designed to encourage customers to explore other merchandise, add to their cart, and help encourage sales.
5. Include User Reviews On Your Website
One of the unique features of Amazon is the customer review system. Customers can leave reviews for products they have purchased, which can be helpful for other shoppers who are considering making a purchase. Amazon's customer reviews are a valuable resource, as they offer an honest and unbiased opinion about a product.
What You Can Do: One way to make it easy for your customers to leave reviews is to include links on your website where they can post their thoughts. You can also have a section on your website where customers can rate your products or services.
By making it easy for customers to leave reviews, you'll be more likely to get the feedback you need to improve your business. Customers review other shoppers' ideas of what to expect from a product.
A customer review system is a valuable tool for shoppers that helps them make informed purchase decisions.
In the years since its launch, Amazon Prime has continuously evolved — adding new features and benefits to keep up with the changing needs of consumers. Today, Amazon Prime members enjoy a wide range of perks, from unlimited streaming of TV shows, music and movies to exclusive discounts on groceries and more.
What You Can Do: Find what your competitors lack and fill that gap.
As business owners know, competition is essential for driving innovation and growth. By studying the weaknesses of your competitors, you can identify opportunities to fill unmet needs and attract new customers.
For example, if your competitor lacks customer service, you can focus on providing outstanding service to differentiate your business. Or, if they are weak in product quality, you can invest in higher-quality materials and manufacturing processes.
You can gain a significant competitive advantage by filling the gaps in your competitor's unmet offerings. By studying your competitors and identifying their weaknesses, you can position your business for success.
Customers' needs and wants can change over time, and keeping up with those changes is essential. One way to do this is to solicit feedback regularly through surveys or other forms of customer engagement. This feedback can then be analyzed to identify areas where improvements can be made.
As merchants increasingly move their businesses online, creating a good user experience for their customers is essential. Consumers expect a seamless online shopping experience and are quick to take their business elsewhere if they encounter any frustration, while a positive user experience can lead to increased sales.
Amazon Prime is an excellent example of a company that provides a good online shopping experience for its customers. By understanding the needs of their customers and using data analysis, they have been able to create a business that keeps customers coming back for more.
By studying what makes Amazon Prime successful, you can apply these principles in your business to boost sales and grow your company.
How Can Merrco Help?
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