9 October 2020

by Spark Eighteen

5 Secrets that contributed to Amazon’s remarkable success


Statista says that every month over 197 million people around the world get on their devices and visit Amazon.com. Ever wonder how Amazon became so popular and what is the reason behind the company’s success? Here we will talk about the 5 secrets to why is amazon successful.

Table of Content:

  1. Progressive products
  2. Remarkable customer service
  3. Unique delivery system
  4. Diversification
  5. Outstanding User experience

Jeff Bezos’ behemoth has disrupted traditional retail business – and while this is a bold statement to make,

Here are some facts to back this up:

  • Amazon was responsible for 45% of US online spending in 2019 – the figure is expected to grow by the end of 2020. (Source: Statista)
amazon sales
Image Source: RepricerExpress
  • Amazon’s net revenue increased by over $47 billion year-on-year, from $232.9 billion in 2018 to $280.5 billion in 2019. (Source: Statista)

amazon revenue

  • There are over 100 million Amazon Prime members around the world, and they typically spend over $1,000 a year. (Source: RepriceExpress)
  • Amazon records $4,722 each second, $283,000 each minute, and more than $17 million every hour. (Source: RepriceExpress)

Let that sink in!

It’s hard to imagine how the retail world was functioning back then when Amazon wasn’t around.

Reaching out to customers individually to encourage them to visit your store? Rather sell it on Amazon!

Why is Amazon successful?

Having acquired huge corporations, creating and selling their own products (like Alexa and Kindle tablets), and not to mention their highly successful streaming arm, Amazon Prime Video –  the giant’s enormous and incredible strength came from laying out careful and smart strategies that we’re gonna read about in this blog. But why is amazon successful?

Here’s the answer to this question! Following are Amazon’s key success factors that made it the multi-billion dollar company that it is today:

1. Progressive Products

One of the many places that the eCommerce giant has outdone itself is innovation. The ability to continuously innovate and bring something new to the table every time isn’t everyone’s piece of cake.

The company always looks for new ways to reach different types of audiences to use their medium for purchase.

Today, technology plays a pivotal role in expanding a company’s products to sell. From its use of voice command for sales to the company’s move into movies and music, it is always looking for the next way to innovate.

Innovation is possible because the company isn’t afraid to spend money to try out new ideas and methods. While this is not something every company can do, it is something to consider when you are building your own sales model. Being unique, standing out, and developing new solutions to common problems can help any business to thrive and build against the competition.

2. Remarkable customer service

Every eCommerce business owner knows the importance of customer service. Without robust customer service, your customers will have a conniption fit that can further ruin your brand’s reputation. Looks like Amazon has claimed victory in this field!

Amazon bought simplicity and convenience to the online shopping experience by developing a variety of helpful tools their customers can wield to track packages and easily return or exchange ordered items.  The company’s fast and informative customer service team has won many awards for addressing user problems at apace.  In fact, it is one of Amazon’s underlying missions to continuously raise the bar in customer experience and service and to become Earth’s most customer-centric company.

Part of providing a great customer experience is to be available on every platform your customers expect you to be – and social media is one of them. Amazon has made social media a powerful tool to engage with their customers and enhance the quality of their customer service. On Twitter, the company monitors the @AmazonHelp handle in eleven different languages.

customer service
Source: MarketingLand

Social media interactions can be very crucial when addressing consumer problems as it retains customers and demonstrates a commitment to resolving their problems. Moreover, customers use social media more frequently for many other activities including interactions with brands they love.

3. Unique delivery system

The company knows how to plan and execute customer orders around the globe so that the packages can reach consumers on-time. They have distribution centers across the globe from where they select products that a customer wants and quickly ship them.

In fact, Amazon has been increasingly investing in its delivery system fulfilling the company’s Prime delivery promises. From its own cargo airline to autonomous drones, Amazon has streamlined and expanded its delivery services, relying on both conventional and unconventional ways of delivering goods.

4. Diversification

Peek through Amazon’s endless assortment of verticals, and you won’t miss out on a single thing that shouldn’t have been there. Really. The company is quite true to its logo when it indicates that it sells everything from A to Z.

Amazon has a wide variety of products that are clearly categorized nicely on their website. From music to books, to kitchen appliances, or beauty products – basically, you just have to name it! They do not target a specific group of consumers or audience when selling products. Instead, they have everything for everyone. That is why it is a go-to platform for a large number of consumers worldwide.

Not just eCommerce, diversification is synonymous with growth and survival in almost every industry. It’s a proactive growth strategy.  Adding new products and services to your line can expand your reach to new markets and product categories that will help you target a wide variety of audiences.

5. Outstanding user experience

There’s no lying to the fact that as the internet usage has grown, people’s expectations for a website’s user-experience have grown too! Just take notes from Amazon on how to design your website to engage your audience.

A survey by Visual Objects found out that Amazon’s UX ranks highest among baby boomers (29%) and Generation Xers (21%).

visual objects
Image Source: Visual Objects

What makes Amazon’s UX so likable among different generations?

It’s the website’s easy to use functionality!

It makes it easier for consumers to find what they’re searching for and move through the conversion funnel to reach more sales. That is why it is so convenient to use for tech-savvy younger individuals to a more older generation that is recently familiarizing themselves with eCommerce.

Some of the website’s most notable factors are:

  • The search bar is prominent on every page.
  • The algorithm personalized recommendations to the user’s search history or past product interactions.
  • The use of filters to refine the search process.
  • Clear call-to-action at every page in both blue hyperlinks and images offering cues to convert.

To conclude

There you have it! These are the 5 secrets to why is Amazon successful.

Amazon has now become its own verb. We do not say “Let’s buy it online” anymore, we rather say “Let’s Amazon it.”

But what makes this $200 billion dollar company so successful?

It is the experimentation and diversified tactics that made this 25-year old company the giant that it is today! With its growth over the years, Amazon has laid a path for businesses to follow its footsteps and learn from its mistakes on how they can also break the market. It’s hard to thrash what Amazon has already built, but it’s easy to try.

Start small by testing and experimenting with the best suitable tactics, slowly adapt to the changes you make, and be consistent.

If you want your own eCommerce store built, you can reach out to us here.

Spark Eighteen

Spark Eighteen is a brainchild of innovative young minds and a group of alarmingly out-of-the-box thinkers who happen to see the world of marketing from a new age perspective. With a proven expertise in the field of Brand consulting, Digital Marketing and Website Design and Development, our team of designers, developers, and creative heads work towards delivering maximum results, tailor-made to all your business needs.
Spark Eighteen

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