Lessons that every Retailer can learn from Amazon!

11/08/2018
lessons that every Retailer can learn from Amazon

With more than 310 million active customers worldwide it’s no wonder Amazon tops all e-commerce and retail stores!

It’s important for retailers to keep their services and products up to date so they stand out to consumers. Every once in a while, a company completely changes the way businesses and consumers think…

Apple changed the technical space, Ford changed the way we looks at cars and Amazon changed the way we shop.

Once, just an online retailer, is now one of the largest marketplaces in the world! And by revolutionizing their e-commerce ways, there are many lessons that every Retailer can learn from Amazon!

It’s obvious that few retailers will possess the vast resources that Amazon has to offer. Nonetheless, we can certainly learn from the shopping experience they offer customers.

Here are the top three lessons that every Retailer can learn from Amazon.

 

The customer comes first

Amazon strive on a reputation of providing their shoppers with the most wonderful customer experience possible.

With an easy-to-find help link on each page and a 24 hour phone number, Amazon is constantly making sure that its customers always have support and are never left in the dark.

Employees are trained to move fast to fix any problem. But, Amazon’s care for customers goes way beyond the usual customer service. If you’ve used Amazon’s services before, we’re sure that you’ve noticed their ability to offer product recommendations based on past searches. This feature is there to attempt to make your shopping experience simple and seamless. Especially for regular customers!

They also offer product bundles at the bottom of the product page. This lets shoppers know what else they can order, related to that product.

 

Incentives

The easiest way for consumers to get the most out of their Amazon experience is to sign up for a Prime Membership… Amazon CEO Jeff Bezos confirmed that Amazon Prime has over 100 million subscribers worldwide.

Amazon Prime offers members:

  • Free fast shipping for eligible purchases.
  • Streaming of movies, TV shows and music.
  • Exclusive shopping deals and selection.
  • Unlimited reading and more!

For UK based consumers it costs £5.99 a month and for US customers, $12.99.

According to statistics, 45% of US Amazon customers signed up for Prime, putting membership at almost 40m people! It’s obvious that this kind of incentive works for customers. Loyalty programs are powerful marketing strategies, especially when offered by trustworthy brands.

How can you reward your customers loyalty?

 

Price Perception

Amazon is known best for their low prices, daily deals and undercutting competitors frequently. They have earned the title of being a loss leader. With continuous reports of losing profit and third party sellers being undercut by the giant, they certainly know business.

However, although Amazon does lower the price on high-investment purchases (like TVs)… it actually increase the prices on complimentary goods (like HD cables). This then balances out the constant low-price reputation. Clever, right?

 

Key Lessons

Amazon’s practices provide retailers of all sizes with useful lessons. Customer service is important but we know that smaller retailers might not be able to afford a 24-hour call service. But who’s to say that a live chat during business hours couldn’t suffice?

You could use analytic programs to gather customer data on your site. With this info, you can then offer personalised recommendations to provide an optimal experience.

Offer your customers the opportunity to subscribe to your brand (gathering info). In return, send them emails based on discounts and offers. This will give them more of an incentive to use your services without having to pay a dime!

 

Amazon can teach retailers how to get ahead of their competition and how to be better for their customers and reputation. So just remember, if you’re looking for innovative and refreshing ideas, there are lessons that every Retailer can learn from Amazon.

Similarly we have written a blog based on 3 Things Retailers Can Learn From The Apple Store where we looking further into the culture, vision and design that powers Apple. Check it out!