4+1 things to learn from Amazon

Jeff Bezos' baby counts 23 years on this Earth, so he could definitely be a successful teacher when it comes e-commerce. Amazon started as a books e-shop and ended up leading the way in the e-commerce environment.

Why?

Because the technology of transactions matters and Amazon got it right from the beginning.

Why does the technology of transactions matter? According to Castell (2001), it reduces transaction costs, at least by 50% and opens up opportunities to invest on-line, with four consequences:

1. It increases market volume since buyers can invest money anywhere

2. Investors are greatly affected by online information

3. Investors are equipped with the right technology to react instantly to market trends and make financial decisions

4. Disintermediation is enhanced. For those who don’t follow, disintermediation is the removal of intermediaries; customers buy products from online businesses without the help of sales clerks or travel agents. (Diamantaki, 2017)

Amazon took all the necessary steps to keep the customers satisfied and was greatly rewarded for their loyalty. Quality of products is not enough to keep your consumers loyal. They will switch at a finger snap, if they are not totally satisfied with your brand. Follow the example of Amazon and your e-shop will stand a great chance to be successful. You don’t need to have a multimillionaire engine in order to be successful. Simple things that any e-shop could have.

#1. It’s all about user experience

If you had a physical store, you would have a showcase, right? That’s your website! Make the user want to browse your site for hours. Use a simple interface with clear categories and inviting colors and pictures. The mobile friendly advice is omitted, because it is obvious, duh! Your payment policy should be clear and should be completed in a few steps.

Pro tip: Make the difference. In Amazon, the model for the dresses moves as if she is in a catwalk. Find something similar and you will not regret it!

#2. Listen to your customers

“A key component of this success is driven by Amazon's gargantuan amount of data and interface between consumer behavior, customer service and fulfillment and supply chain logistics”, Sands (2016). The truth is that your customers are always right. Always. So, you should listen to them. Monitor what they like or not wherever you can. Follow their footsteps in your site, social media or reviews and you will know exactly what they are looking for.

Pro tip: Never respond negatively to a bad review. “Venom can be a great leading indicator!”, Michelle Conlin, 2016.

#3. Satisfy the “I want it now attitude”

Customers are impatient, because as we all know time is money. Most of them needed their delivery yesterday, so once you delay, you are not an option any more. Amazon announced the “Same day delivery” and 4 years later started the testing for drone deliveries.

Pro tip: Don’t think of sending things only. Take care of making the returns easy as well.

#4. Brand image

“No longer concerned with simply fixing a logo to a product, branding practices increasingly attempt to establish virtual contexts for consumption; experiences, spaces, relationships are all branded”, Hearn (2010). Ask yourself: Do your customers get you? Are your products, website, marketing, support aligned to the same direction? Be consistent!

Pro tip: Don’t waste time in building a fantastic website, while your ads would never urge someone to enter it. No one will bother.

#5. Be ahead of the market!

Amazon decided to give a new dimension to the buying journey by launching Amazon Go store. “What makes Amazon Go interesting is not the concept of a grab-n-go grocery. It’s the weaving together of digital technology with the offline shopping experience to solve consumers’ biggest problems”, Franson (2017). Of course, you are not expected to have a physical store, but you get the point. Think of something extraordinary!

Pro tip: Don’t try this at home!

See? Smart tips….. Start building your company the right way!

Resources:

Castells, M. (2001). The Internet galaxy: Reflections on the Internet, business, and society. Oxford: Oxford University Press

Cohen, R. (2016). A Timeline of Amazon’s Shipping and Fulfillment Evolution. Retrieved from: http://bringg.com/blog/industry-trends/a-timeline-of-amazons-shipping-evolution/

Diamantaki, K. (2017). MA in digital communication and Social media. Digital media and CMC. Lesson 7 [PowerPoint presentation]

Franson, B. (2017). Amazon Go Is the Future (Plus 4 Reasons The E-Commerce Giant Might Just Win Retail) . Retrieved from: https://www.forbes.com/sites/groupthink/2017/02/03/amazon-go-is-the-future-plus-4-reasons-why-amazon-might-just-win-retail/#6fa6804e19dd

Hearn, A. (2010). Structuring feeling: Web 2.0, online ranking and rating, and the digital ‘reputation’ economy . Retrieved from: http://www.ephemerajournal.org/contribution/structuring-feeling-web-20-online-ranking-and-rating-and-digital-%E2%80%98reputation%E2%80%99-economy

Sands, J. (2016). Amazon Is The Global E-Commerce Leader . Retrieved from: https://seekingalpha.com/article/4001169-amazon-global-e-commerce-leader

#tips #amazon #AmazonGo #UX