Amazon Case Study – Why it is No. 1 in Ecommerce?

Do you know that Amazon was just a small book store when launched in 1994?  Which is now become a big name in ecommerce world, no. 1 online retailer in USA and equally popular in the whole world for providing all type of products and services. Naturally, a question arises in mind that now a day, why it is so popular and the answers is that it has strengthened its backbone with effective business policies and marketing planes.

Amazon 2

Purpose of our today’s roundup is basically to demonstrate the business idea of Amazon so that you can also follow it and became successful in your business. So let start here;

1.      Selection of Name

When Amazon was started initially, its name was “Cadabra” but to make it more unique owner of this company “Jeff Bezos” changed its name to “Amazon”. The reason behind is that alphabetically this name stands at the top when listed somewhere. Secondly, Amazon River is the biggest river and he want to make his store just like the same.  Telling a reporter Jeff Bezos said, “There’s nothing about our model that can’t be copied over time. But you know, McDonald’s got copied. And it still built a huge, multibillion-dollar company. A lot of it comes down to the brand name. Brand names are more important online than they are in the physical world.”

2.      Best Product Planning

After reading a report that in future web commerce will grow upto 2300%, Jeff Bezos selected about top 20 products to sell them online. After that he narrowed these products to 5 books, videos, computer software, hardware, and compact discs and then at last selected Books. This is result of good planning and innovative thinking. The result was just achieved in the first two month with sales rise upto $20,000/week.

3.      Amazon Logo

Amazon 2Since 2000, Amazon has changed his logo that contains an arrow from A to Z, it means that Amazon contains all a to z products in its store. The curve also shows a smile sign that make it quite a unique logo.

4.      Amazon Initial Growth

Initial growth of Amazon was quite slow and its stockholders thought that this will not be fruitful in the future but soon after 2001, it has gained enough profit. This was the strong business plan that survived Amazon from dot-com bubble.

5.      Amazon Partnerships

Amazon done different partnerships with companies to make it stable like ToysRus, Borders bookstores, Benefit Cosmetics, Sears Canada, bebe Stores, Marks & Spencer, Mothercare, and Lacoste etc.

6.      Amazon is expanding its business

Amazon has focused to expand its services in the whole world. For example, in the year 2014 it has stated its store in India and further more offered Diwali Dhamaka Week sale from 10 to 16 October 2014 that has make it popular in India.

7.      Amazon Membership

primeAmazon has started its yearly membership program according to which members on paying $79 per month with the feature that members will get their purchased products within two days on discounted prices. Some other membership benefits are instant videos streaming and TV shows without additional cost. Members have also free access to Kindle Owners’ Lending Library.

8.      Consumer Services and use of technology

mobileAmazon is largely focused on providing best services to their customers. In 2007, it has introduced ebook reader for Amazon Kindle that provides the book download facility and then reading through proper display.

In 2011, Amazon has introduced its tablet computer series followed by second generation tablet. Some other products introduced are Fire TV and smartphone.

9.      Separate Website for Each Country

AmazonAmazon has focused to start a separate website for each country like

  • amazon.in for India
  • amazon.fr for France
  • amazon.de for Germany
  • amazon.it for Italy

10. Third Party Selling

Amazon allows other stores to sell their products on Amazon. This is the biggest source of profit for Amazon where all the payments are handled by Amazon. There are about 900,000 members’ solding their products on Amazon.

What To Learn?

Every merchant who want to follow Amazon in his business model, can adapt the following things;

  • Selection of name of store should be unique and planned.
  • Product Planning should be perfect i.e. the products that are top selling should be sold. Also product planning should be long term.
  • A unique logo that can explain your whole business in a small graphic.
  • If your growth is not well in the start, then don’t give up.
  • Do partnerships with other companies on share basis. That can make your business more popular.
  • Initially start your business in one country and expand it slowly over the world.
  • Offer membership packages for the customers and give them benefit in the way that they starting relying on you.
  • Make use of technology to introduce latest features in your business.
  • Make separate website for each country rather than a single website for all. That will help your to personalize your website according to each country.
  • Start partner program and allow others to sell their products on your store. But this should be done only when your own business become stable.

Summary

All the above mentioned plans are trusted and implemented by Amazon. Therefore you can adopt any of the plans without the worry of any expected problem.

At the end, tell us your suggestions that how you found this case study useful and how it can be implemented for PrestaShop ecommerce.

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