Amazon is one of the largest companies in the world and retailers can certainly learn a thing or two from the ecommerce giant.
Every once in a while, a company completely changes the way businesses and consumers think. Ford changed the way we look at cars, Apple changed the way we look at computers and Amazon changed the way we shop.
It was once just an online retailer, now Amazon has developed into one of the largest Here are the top three lessons any retailer can learn from Amazon.
1) The customer comes first
Amazon makes it a point to provide their shoppers with the most wonderful customer experience possible.
With a 24-hour phone number and an easy-to-find help link on each page, Amazon wants to make sure its customers are never frustrated or confused.
Employees move fast to fix any problem, but Amazon’s care for customers goes beyond its customer service.
If you’ve shopped on Amazon before, you’ve probably noticed Amazon’s ability to offer product recommendations based on past searches. It is attempting to make the shopping experience simple and seamless for all and especially those who have shopped with Amazon before.
It also offers product bundles at the bottom of product pages to help a shopper realise a previously unknown need.
2) Incentives work
The easiest way for consumers to get the most out of their Amazon experience is to sign up for a Prime membership.
In the United States, the $99/yr program offers free two-day shipping on eligible items, among other things like video and music streaming services, photo storage, and early access to Amazon’s latest inventions.
$99/yr seems a little steep, right? Well it isn’t too steep, since 45% of Amazon’s customers in the United States have signed up for Prime, putting membership at almost 40m people.
3) Your brand can shape price perception
With continuous reports of Amazon losing profit and third party sellers reporting being undercut by the giant, Amazon has earned the title of being a loss leader. If consumers want a low price, they look to Amazon. They are known for daily deals and undercutting competitors frequently.
However, recent data shows that Amazon does not always have the lowest prices available for its items.
While Amazon does lower the price on high-investment purchases (like TVs), it actually increases the prices on complementary goods (like HD cables). Therefore, it does not always live up to the low-price reputation it has gained over the past few years.
It can be hard to beat Amazon at its own game, but putting a new spin on their practices can help retailers differentiate themselves from the giant. That spin is up to the retailer’s discretion, but if it’s innovative and refreshing, they can establish themselves as a worthy competitor.