7 Reasons Why Amazon Is So Successful (2024)

When Amazon started in 1995, it was a site that only sold books. Within a month of its inception, the company had already shipped books to over 40 different countries. Since then, Amazon has become one of the world’s largest e-commerce companies, accounting for around 44% of total e-commerce sales in the United States for 2017. So then, how exactly did Amazon pull off such impressive results? We’re glad you asked.

At Snap Agency, we specialize in crafting data-driven solutions that position our clients for continuous growth. We’ve spent the past eight years developing innovative digital marketing strategies to help a wide range of B2B and B2C businesses maximize leads and sales. We’re also proud to provide the resources e-commerce companies need to thrive in the ever-changing world of digital. So today, let’s take a look at seven reasons why Amazon is enjoying such tremendous success.

7 Reasons Why Amazon Is So Successful (1)1) INNOVATION

Amazon’s success largely stems from its innovative technologies and practices, many of which were championed by its CEO, Jeff Bezos. Consider the Echo, Amazon’s impressive voice command device. Echo can be used to play songs, research your favorite sports teams, and even check the weather with a few spoken words. This innovative technology was a huge investment for the e-commerce giant—one that fostered exceptional results. Over 22 million Echo units were sold in 2017 alone.

Amazon’s progressive mindset doesn’t always bear fruit, but accomplishments like the Echo prove that innovation can yield impressive results for e-commerce companies.

7 Reasons Why Amazon Is So Successful (2)2) CUSTOMER SERVICE

Because of its commitment to world-class customer service, Amazon has developed a range of helpful tools users can employ to track packages and quickly return or exchange ordered items, bringing simplicity and convenience to their online shopping experiences. Amazon’s Customer Service team has won multiple awards for its dedication to preventing and swiftly addressing problems for customers. One of Amazon’s overarching missions is to become the planet’s most customer-centric company—and the brand’s dedication to this goal has paid dividends.

Social media is another powerful tool that Amazon employs to engage with shoppers and enhance the quality of its customer service. When done right, social media channels can help your e-commerce business address customer concerns and build a solid foundation of loyal and passionate followers who advocate your brand. That’s why many e-commerce companies work with Snap’s Social Media Team to refine and grow their social presence.

3) EXECUTION

Amazon gets everything right when executing customer orders. They select products and services that customers want and need—and leverage distribution centers across the globe that allow them to quickly ship products. Amazon also has excellent vendor relationships that allow them to offer customers discounted pricing. The world’s largest online retailer is also ramping up plans to invest more across Europe this year, employing thousands of more employees. They’re also looking to implement brick-and-mortar stores that will have the capability of same-day-delivery via drones!

4) DIVERSIFICATION

Starting off as an online bookstore, Amazon now offers everything from soup to nuts. Literally. A search of the site reveals over 3,000 listings for vegetable soup. Search the term “nuts” and you’ll see over 37,000 results. Amazon now carries products in music, books, electronics, health and beauty, automotive, grocery and clothing. Business owners can contract with Amazon’s network of pros to get IT support, furniture assembly and even A/V services. By diversifying its offerings, Amazon is continuously driving reach and relevance.

Regardless of your industry, you should be fearless in the pursuit of diversification. Expanding into new markets and product categories will help you attract new business opportunities to grow your organization. You should even diversify your digital growth initiatives when possible. For example, Amazon currently boasts an impressive 3.6 billion backlinks and 3.8 million referring domains. A highly diversified link portfolio plays a pivotal role to any successful SEO campaign. That’s why many e-commerce companies partner with us to optimize their link building strategies.

5) OUTSTANDING USER EXPERIENCES

A strong UX makes it easy for e-commerce customers to find what they’re looking for and move further down the conversion funnel, resulting in more sales. That’s why Amazon employs a full UX team comprised of professionals in everything from user research and interaction design to web development. These UX experts collaborate with Amazon’s engineers, product managers and executives to create seamless user experiences that drive customer conversions.

Fortunately, any company can improve its online UX with help from the right digital marketing partner. Snap Agency’s Design Team offers comprehensive web design and CRO (conversion rate optimization) solutions to help you perfect your website’s UX and UI. Our human-centered design process will boost the conversion impact of your online presence through user experiences that inspire and engage.

6) MERGING DESIGN WITH CONTENT

It’s no secret that long-tail content is a huge component of e-commerce SEO. You need large amounts of keyword-rich copy to increase the visibility of a page on search engines—which is why Amazon uses lengthy product descriptions and FAQs on its product pages. However, take a look at any product page on Amazon, and you’ll notice that this long-tail content doesn’t adversely affect its flow or UX. Amazon’s product copy is given less priority than important CTAs (such as the “Add to Cart” and “Buy Now” buttons). This seamless merging of design and content ensures that Amazon pages attract and convert relevant web traffic.

If you’re looking to optimize your site’s content without sacrificing its UX, then consider partnering with a digital marketing partner like Snap. We provide robust content marketing solutions for our e-commerce clients to maximize the performance of their product pages on leading search engines. Our SEO Team can create impactful long-tail content that aligns seamlessly with your site’s design to drive traffic and conversions.

7) AN “IN IT TO WIN IT” MINDSET

Does anybody really remember when Amazon was unprofitable? If you’ve been around for awhile, you might remember Bezos’ warning to investors that it would be a long time before they would see a return. Back in 1997, he told Inc. Magazine that Amazon would be unprofitable for a very long time. His “in it to win it” mindset kept the company pushing through new strategies until 2003—when the company posted its first profit. No matter how you look at it, Amazon has grown up from a little online bookstore to an industry giant. You could even say Amazon created the industry for total domination.

7 Reasons Why Amazon Is So Successful (3)Positioning Your E-Commerce Company for Success

So now that you have a solid understanding of how Amazon rose through the e-commerce ranks to claim its throne, let’s talk about how your own e-commerce business can mimic its success. Along with the traits we’ve listed above, digital marketing is one of the most important catalysts for e-commerce growth. And while most companies understand this fact, few of them understand exactly which digital marketing services will harbor optimal growth and ROI.

It’s important to remember that digital marketing for e-commerce depends on a range of initiatives, not just one. For example, you might invest heavily in SEO or PPC to ensure that your website attracts shoppers who are looking for your specific products. But if your site isn’t optimized to attract and convert users, they’ll simply bounce back to the search engine to find another provider. For maximal results, you need a range of digital marketing tactics that synergize to move customers all the way through your sales funnel. And that’s where digital growth consultancies like Snap factor in.

At Snap, we’ve been supporting e-commerce companies for almost a decade through powerful e-commerce solutions. Our SEO Team can perform comprehensive e-commerce SEO for your website, leveraging keyword and competitor research to differentiate and optimize your pages for search engines. From on-page optimization and content marketing to Amazon product optimization, our SEO best practices will deliver marked results for your e-commerce enterprise. We also offer comprehensive CRO (conversion rate optimization) and web design services to maximize the performance and conversion impact of your website.

Move Beyond ROI With Snap Agency

Interested in learning more about Snap’s digital growth solutions and how they can poise your e-commerce company for long-term results? Then be sure to call or message us today. Whether you need help with driving traffic and conversions or enhancing customer loyalty, our team of digital marketing experts can help.

If you’re still hungry for information on Amazon, then check out our related post, Snap’s Amazon Statistics + Infographic! We also have a detailed guide to help you decide whether you should sell your products through Amazon. Best of luck on your e-commerce journey, and don’t hesitate to reach out if you need help. We’re always here for you.

7 Reasons Why Amazon Is So Successful (2024)

FAQs

What makes Amazon so successful? ›

Amazon is known for its efficiency. It is able to get products to its customers quickly and efficiently. Amazon has also been able to create a streamlined checkout process that makes it easy for customers to purchase items on its website.

What is the secret of Amazon's huge success? ›

Customer Obsession: Bezos often emphasizes the importance of prioritizing customer needs and satisfaction above all else. He believes that by relentlessly focusing on delivering value to customers, Amazon can build long-term loyalty and trust, even if it means sacrificing short-term.

What good things has Amazon done? ›

Beyond our own workforce, Amazon's investments have supported nearly 1.6 million indirect jobs in fields like construction and hospitality. We also actively work to help communities by responding to the urgent needs of reducing hunger and homelessness and investing in education for children and young adults.

What drove Amazon's early success? ›

Ans: 1. Innovation Jeff Bezos focused on making e-commerce attractive, secure and easy for the first time online buyers 2. IPO and investors In 1997, Internet companies began achieving sky-high valuations Investors bought anything even vaguely associated with the internet regardless of valuation.

What are 5 facts about Amazon? ›

But there are also many under-the-radar fun facts about Amazon's current ventures—such as its cashier-less stores and drone delivery.
  • Amazon Held Its Meetings at Barnes and Noble. ...
  • Amazon Launched as an Auction Site. ...
  • It Was Also an Early Competitor of Yahoo! ...
  • Amazon Users Can Donate to Charities When they Buy.

How did Jeff Bezos make Amazon so successful? ›

Long term growth strategy

Bezos has always had a focus on long term growth, with Amazon's profits being rigorously re-invested to nurture this strategy. This is reported to be one of the reasons Amazon has grown so rapidly, and continued despite issues with overspending.

What are the 5 working backwards questions? ›

We begin the process of Working Backward with five questions.
  • Who is the Customer? — consider the time, place, and situation.
  • What is the Customer's problem or opportunity? ...
  • What is the most critical Customer benefit? ...
  • How do you know what customers want or need? ...
  • What does the Customer experience look like? —
Apr 17, 2023

When did Amazon become a success? ›

In 2001, the dot-com bubble burst, destroying many e-companies in the process, but Amazon survived and moved forward beyond the tech crash to become a huge player in online sales. The company finally turned its first profit in the fourth quarter of 2001: $0.01 (i.e., 1¢ per share), on revenues of more than $1 billion.

What is positive about Amazon? ›

Preferred Online Shipping. Because Amazon's shipping speed is incredibly quick, Amazon has created not only a cost-effective alternative to retail buying—but a faster one. Amazon's times are getting faster, and they're always closing the gap between order verification and doorstep delivery.

Who is Amazon's biggest competitor? ›

Amazon's biggest direct competitors include Walmart, eBay, the Alibaba Group, Target, as well as more localized eCommerce marketplaces (such as Otto or Rakuten). In the video streaming segment, Amazon's biggest competitors are Netflix, Rakuten, HBO, Disney, and Apple TV+. Who are Amazon's indirect competitors?

Does Amazon have a positive impact? ›

Many of our fulfillment centers are located in small towns (populations of less than 50,000 according to the U.S. Census Bureau) across the U.S., and as a result, create significant, positive impacts in these communities through job creation, boosting local businesses, providing employees access to skills training, and ...

What was Amazon originally called? ›

The Beginning of Amazon

On July 5, 1994, Amazon was officially founded under the name “Cadabra” (as in abracadabra) by young Princeton graduate Jeff Bezos within a garage space in his rental home in Bellevue, Washington.

What does Amazon focus on? ›

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking.

What is Amazon's competitive advantage? ›

Amazon's fulfillment network provides customers with fast, low-cost, reliable delivery while creating opportunities for independent sellers to lower costs, increase sales, and grow their businesses.

Why Amazon so rich? ›

When the company went through an initial public offering and started trading in 1997, it outpaced all of its competitors in the market. Within a few years, the company expanded beyond books by offering other types of merchandise and eventually branched out into offering different types of consumer services.

What is Amazon's strategy? ›

Customer loyalty is achieved by its world-class delivery service. Amazon's main strategy is to differentiate itself by developing products and services that meet the needs of its customer segments. The four pillars of Amazon's growth strategy include customer-centricity, innovation, corporate agility, and optimisation.

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