Amazon is one of the most important e-commerce companies in the world and has become an essential part of the lives of millions of people around the globe. It has also become an inspiration for business owners worldwide; whether you are running a digital marketing agency or selling crochet clothes, chances are you look to Amazon’s success to get inspired. The company began as an online bookstore, but it has expanded over time to include other product categories, including electronics, household items, clothing, food, etc., and it has also started offering services such as cloud computing and streaming video. Despite some challenges, Amazon still continues to grow and thrive in the industry. Amazon has become so successful and has continued to set itself apart from other businesses in its industry, which is what makes it so incredibly unique. Even local competitors worldwide struggle to take the space of Amazon, it is no wonder that the owner, Jeff Bezos, has become one of the richest people in the world through it.
Founded in 1994 with a ten-year plan, Jeff Bezos charted his path to ecommerce dominance by building on successes rather than focusing on failures. Though Amazon was losing money—$20 million in its first five years—it was growing quickly enough that investors were eager to buy shares. In 1997, it went public at $18 a share and quickly gained traction. A rule of thumb for businesses is to spend no more than 5 percent of sales on overhead costs such as supplies, salaries and so forth; but Amazon was spending 10 percent in 1996 because everything had to be done manually. Recognizing these issues, Bezos made another big move ahead when he hired computer scientist Peter de Jager from Microsoft Corp., who designed an inventory management system that reduced overhead costs from 10 percent to 3 percent. This was one of the most defining moments in the growth of Amazon as a global conglomerate.
The rise of Amazon has definitely been beneficial for businesses, as it has provided them a platform to showcase their products at minimal costs to a huge audience. But, the biggest benefits of Amazon have been for customers. For many consumers, Amazon is simply the easiest platform to use. It has allowed people who struggle with social anxiety to find the best pieces of clothing at the comfort of their own home without having to communicate with any salesperson. Moreover, it is incredibly beneficial to people in rural areas who may not have as much access to shopping malls. Not to mention how helpful online shopping has been during the Covid-19 pandemic. It’s also nice to be able to search millions of items at once rather than having to drive from store to store looking for what you want. Shipping can be free if you spend enough money or have a membership, and some items are eligible for same-day delivery. A lot of countries even offer 2-hour deliveries for essentials such as groceries, which has definitely added to the craze of Amazon. The customer service department can help with issues you may have with your order or an item itself. If there’s something wrong with your purchase, they’ll take care of it—no need for a return trip back down that highway. The customer service of Amazon has always seen positive reviews, it seems that the teams are trained effectively to offer the best advice and support with minimal interaction.
Nonetheless, Amazon hasn’t stopped at providing every item you can possibly desire to your home, it has taken into the fields of media as well through Amazon music and TV. More recently, Amazon has started to produce its own products too, including the AI service well-known to everyone “Alexa.” No matter how popular Google or Siri might be, Alexa is still the most common household name for AI Assistants, which shows the power of Amazon locally. You’re even able to shop right from your phone so long as you’re using Android or iOS, which has definitely grown the percentage of impulse buys, but is also a strategy which makes a global e-commerce service available locally to nearly everyone. Amazon’s Video services have also begun creating original shows, which has directly impact smaller artists, giving them an opportunity to shine which the TV industry didn’t provide. It’s no wonder that Amazon customers are so loyal.
While Amazon is undoubtedly a force to be reckoned with, there are some things about it that consumers as well as business owners using Amazon may not love. For example, sometimes items can be hard to find because they’re spread out between various platforms. Additionally, many third-party sellers on Amazon have their own return policies that may vary from those established by Amazon. In other words, you might end up with a product you don’t like—but then have to deal with yet another return policy. Moreover, there have been growing complaints of Amazon selling fake Luxury products, which is why it also requires a level of research for a person to buy anything too expensive from Amazon. Running a background check to see whether the company selling the products is real would be beneficial. In terms of business owners, many can disappear in the crowd due to Amazon’s increasing products. On the other hand, for anyone looking to sell their product on Amazon, there is quite a learning curve for success, so the business owners would have to invest time and energy on understanding the platform. Despite its challenges, Amazon remains one of ecommerce’s biggest players due to its diverse offering of products at competitive prices and its top-notch customer service. Additionally, Prime memberships offer free shipping at no extra cost which keeps customers engaged across multiple channels.
One thing that sets Amazon apart from other ecommerce businesses is its easy online setup for both customers and businesses. Moreover, practically any query one can have regarding the setup process is answered on its wide online forum. This not only allows for more unique products, but also makes it more likely that customers will find what they are looking for. Some might say creating an easy way to compare prices and products would increase sales, however; experts suggest that customers appreciate being able to view so many different things in one place. For example, if someone was shopping for a new pair of sunglasses, they could scroll through all types available and narrow down their choices based on price and quality. In other words, creating an easy way to compare prices might attract fewer potential customers but potentially make them more loyal in return. It’s something worth considering.
There’s no denying that Amazon has done an incredible job at building a successful business over time. A lot of people shop online nowadays due to factors such as convenience, ease-of-use, and a sense of security when browsing websites like Amazon. However, one important factor stands out: trust. Ultimately, people choose Amazon because they know exactly who to reach out to if things go wrong.
In today’s world of the aware shopper, it is also important for Amazon to keep an eye out. More and more people are willing to stop shopping from a platform if it shows malpractices or is not sustainable. It is no wonder that Amazon is almost always quick to respond to controversy and criticism and that it has started providing space to showcase small businesses, local artists, and used times like Black History Month to provide black entrepreneurs a chance to shine. Additionally, it has also increased its sustainable packaging options, amid other actions taken to enhance its environmental standards. It can be assumed that as Amazon has continued to grow over the years, adapting to changes and facing challenges head on, it will continue to do so in the future.