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Amazon Strategies

Amazon Strategies Every Seller Should Know

Amazon has been reigning the online market for years. Its foundation lies in carefully planned, well thought strategies built by world-class economics. Without these strategies, Amazon would not be able to compete against huge e-commerce business, and ultimately reach the pinnacle of success in the online industry

We put together some of the key strategies Amazon sellers should know.

E-commerce Segmentation

Market segmentation involves evaluating and categorizing customer groups to enhance marketing efforts and provide the best products. With e-commerce segmentation, Amazon can tap into the customer’s information and use it to identify their needs. This puts Amazon at a better position to create uniquely appealing products and outperform their competitors.

For example, using the customer’s IP address, Amazon can track the pages the customer has recently visited, their purchasing capability and interests. With the information gathered, Amazon can now improve its marketing and offer products that appeal most to its customers.

To test how this strategy works, head over to Amazon and click on the Art Supplies category. Try looking around for a couple of minutes, and go back. Now, you will notice that the ads on the Amazon website and on other websites that you visit will start displaying Amazon ads within the art supplies categories. Using your shopping behavior, Amazon can then start to offer you products that you are most likely to purchase.

Customer Relationship Management (CRM)

Amazon has a robust CRM at the backend. Without it, Amazon would struggle to provide great customer experience, smooth communication process and streamlined buying journey.

But what does CRM exactly means? As defined by Salesforce, CRM or Customer Relationship Management is a strategy for managing an organisation’s relationships and interactions with customers and potential customers. A CRM system helps companies stay connected to customers, streamline processes, and improve profitability.

One of the secrets behind the massive success of Amazon is its solid CRM system, which was built from the ground up by skilled professionals. Amazon put in a lot of effort and money to develop an in-house solution tailored to the organisation’s requirements and objectives. With its intelligent CRM, Amazon can capture a customer’s information right at the moment they visit the website. Using the data obtained, Amazon is well suited to retain customers and personalize its service around the individual.

GLOCAL Strategy

Glocalization is a combination of the words globalization and localization. As explained by Investopedia, a glocal strategy describes a product or service that is developed and distributed globally, but is also adjusted to accommodate the user or consumer in a local market. A good example is a global fast-food chain offering geographically-specific menu items that cater to local tastes.

Using the perspective of  “Think Global and Act Local”, the Glocal Strategy allows a business, like Amazon, to take advantage of their global experiences. Then, tailor their products and services to meet the needs, lifestyle and pain points of the local market.

To achieve this, Amazon should adapt their marketing to the culture of the local audience. All media and advertising campaigns should also be tailored to conform with local laws, customs and consumer preferences. Through glocalization, Amazon can level the competition against the local e-commerce companies.

Efficient Delivery Network

The efficiency of Amazon’s delivery network is undeniably one of the biggest contributors to its success. Nearly every aspect of Amazon’s supply chain is optimized – from warehousing and inventory management to delivery times and prices.

When it comes to its delivery, Amazon offers retailers a multitude of delivery selections so it can deliver products right at the customer’s doorstep in a lightning speed. Amazon uses a host of strategies to ensure deliveries reach their destination without delays, including drones, Amazon-branded trucks and vans, and third-party services like Fedex and UPS.

With that said, Amazon can send orders out quickly, easily, and more efficiently to basically anywhere across the world. In some cities, Amazon even offers free cost of delivery charges. Having an extensive and structured distribution network, Amazon can reach the end users really fast, even those at the remote and rural areas.

Amazon’s Continuous Evolution

Amazon remains to be one of the top performing, most successful companies in the world, and not without good reasons. Research suggests that Amazon is not obsessed with a single designed ecosystem of services and apps. It focuses on platforms that would serve their customers in the best and fastest way possible, all the while allowing retailers to do business better, faster and smarter.

In addition, Amazon branches out into different industries, including music service, fashion, movies, gaming, web services, automobile, and so many more. The company’s success largely stems from its innovative technologies and practices, many of which were championed by its CEO, Jeff Bezos. While it is hard to predict what Amazon will be like a decade from now, there is a good chance it will continue to pursue incredible growth opportunity.

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