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4 Key Amazon eCommerce Lessons for Retailers - Part 1

“We’ve had three big ideas at Amazon that we’ve stuck with for 18 years, and they’re the reason we’re successful: Put the customer first. Invent. And be patient.” - Jeff Bezos

Who hasn’t heard of Amazon eCommerce? 

Amazon began its journey in 1994 but has since risen to become a global heavyweight in the world of retail. With nearly 90% of online customers in the UK shopping on Amazon and over 49% eCommerce market share in the US, Amazon eCommerce is every retailer's benchmark. 

Under the leadership of executive chairman, Jeff Bezos, Amazon eCommerce is the first place many shoppers think of when looking to buy all kinds of stuff. While it's such a huge competition for big and small retail brands alike, there are so many Amazon eCommerce lessons to learn if you study how the brand carries out its retail operations. 

Looking on the positive side, we’ll consider 4 key insights every retailer can glean from Amazon eCommerce. This will be a two-part series, so stick around and keep an eye out for the next piece. 

Here’s what we’ll discuss in part one:

  1. Don’t Just Sell Products. Address Pain Points!
  2. Prioritize Convenience
  3. Personalize the Shopping Experience
  4. Patience is a Virtue
  5. FAQs on Amazon eCommerce

1. Don’t Just Sell Products. Address Pain Points!

While shopping online can be convenient, consumers still experience some pain points, and here are some of them:

  • Consumers get frustrated by slow shipping times
  • Buyers dislike a checkout process that requires them to create an account
  • Shoppers want free shipping, so shipping costs will lead them to abandon their carts
  • Customers expect a smooth, cost-free returns process 

Amazon eCommerce tries to remedy these problems by using strategies that help create a smoother customer experience. With fast and free shipping available to shoppers on Prime, as well as other perks like free movies and music for members, users have every reason to consider creating an account and staying signed in. Although the returns process isn't exactly smooth, users can return many items without paying for shipping or simply locate a nearby drop-off point to make returns. 

While you may not have the range of resources to go toe to toe with Amazon eCommerce, proactively address these pain points in your retail business by implementing the following ideas:

  • Show clear delivery dates on your product page, cart, and checkout. Avoid using generic “3-5 business days” delivery promises because that’s how you keep losing customers. Instead start displaying accurate timelines based on customer location, fulfillment location, and carrier info. 

If you’re wondering how to get it done, simply integrate your store with FenixCommerce. Our Delivery Operating System (DOS) does it effortlessly by utilizing upstream data and AI to display clear and accurate EDDs. It’s plug-and-play! 

  • Offer free shipping to customers when they spend above a specific threshold, which should compel them to buy more. You can also go further to offer more shipping options that will get the product to the customer by the promised date or even earlier. That way, customers can choose the best option as per their needs and budget. 

Fenix DOS also can intelligently provide multiple personalized shipping options to customers. 

  • Make checkout easier by offering an option for guest buyers. That should save customers time and eliminate the hassle of setting up an account. You can then strategically use pop-ups to explain the benefits of creating an account.
  • Deploy a returns management program that allows customers to drop off their returns in-store or offer free shipping on any returned products. 

2. Prioritize Convenience

Throughout its operations, Amazon eCommerce always strives to imbue convenience, and you can see that in how it optimized the UI. Its interface is easy to use and has a seamless design, which all combine to make the shopping experience smooth. That’s why eCommerce on Amazon appeals to every kind of shopper.

When you consider that you can 2X or even 4X your current conversion rate by improving your website’s UI and UX, there's every reason to start giving more attention to the design and flow of your online store. Make your site more navigable with customer convenience in mind using these tips:

  • Use high-resolution photos
  • Enable search filtering
  • Add auto-suggest in your on-site browser
  • Write improved product descriptions with broader insights
  • Tailor suggestions to match user history and preferences

You also want to boost customer convenience by streamlining Shipping and Fulfillment operations at the backend in a way that reduces delivery friction. 

3. Personalize the Shopping Experience

Amazon eCommerce makes sure that customers see a personalized homepage whenever they log in. The homepage uses their browsing and purchase history to recommend related products. So if you purchased training shoes previously, Amazon promotes other training shoes to you whenever you get on the website. The retailer also uses your wish list to promote specific related products on your main page. 

It’s all in the data!

eCommerce on Amazon harnesses data to personalize the shopping experience, but just because they have a possibly more advanced data system doesn't in any way stop you from personalizing your customer experience too. Consider investing in technology that allows you to leverage a visitor’s behavior or entry point on your site to fine-tune their experience.

4. Patience is a Virtue

Your goal is to succeed, but keep in mind that you will need time. During its first few years in the business, Amazon kept its head in the game with no expectations of making profits. 

Like Jeff Bezos said, “We’ve had three big eCommerce ideas at Amazon that we’ve stuck with for 18 years, and they’re the reason we’re successful: Put the customer first. Invent. And be patient.”

There’s so much to learn from this. Every business has an incubation phase, so even if you aren’t getting the volume of sales you’ve already envisaged, don’t get beat down. Keep improving and innovating until you hit your targets. Learn to be adaptable to behavioral changes in shoppers and keep investing in systems that give you a material advantage over your competition. 

Growing Your Brand like Amazon eCommerce 

Only a few retailers can try to match up with Amazon's eCommerce operations, but there's so much to learn just by studying its operational strategy. The four lessons covered in this article should give you a head start and get you on your way to tremendous success. 

Remember, your focus should be to create a superior shopping and delivery experience for your customers. That goal needs to be at the core of your decision-making, whether you're looking to implement personalization, improve convenience, or boost customer retention. 

And while you await the second part of this eCommerce on Amazon lesson series, learn more about how to keep your eCommerce delivery promises to your customers. 

Or Request a Demo at once so we can show you how to start displaying accurate EDDs, start increasing your revenue from shipping, and deliver a superior end-to-end customer experience. 

FAQs on Amazon eCommerce

Why Amazon is the best eCommerce company?

eCommerce on Amazon is built on personalization. The retailer adds that personal touch to the shopping flow, thereby creating a unique experience for each shopper.

Who are Amazon’s competitors?

Some other brands competing with Amazon eCommerce for market share in the retail industry include eBay, Flipkart, JD, Walmart, Target, Alibaba, and Rakuten.

Why is Amazon the largest eCommerce?

The Amazon eCommerce dominance is mostly attributed to the omnichannel experience it offers, as well as the wide range of products available to every kind of shopper.

Is Amazon a good eCommerce platform?

At the moment, Amazon eCommerce has one of the most prolific online retail platforms in the world. You’ll find small sellers and well as big retailers selling on the platform. While being a great platform, that doesn’t imply it’s the best one for you. 

Akhilesh Srivastava

Author: Akhilesh Srivastava
Founder and CEO of FenixCommerce

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