6 Reasons Why Amazon Is So Successful

6 Reasons Why Amazon Is So Successful

In 1995, when Amazon started, it was a site that only sold books. Within a month of its inception, Amazon had shipped books to more than 40 different countries. Amazon has continued to grow into one of the largest online company of the world. To know what makes Amazon so great, here are 6 reasons why Amazon rocks.

1) MANAGEMENT - The first and top most reason of Amazon’s success is its management team and its CEO Jeff Bezos. They run it differently as compared to most other companies.

2) INNOVATION - Although Amazon was not the first online ecommerce company, but it is surely one of the most innovative. While other companies have made billions by selling online, Amazon’s success started with just one product category - BOOKS. The introduction of the Kindle made Amazon the most popular. According to Business Insider, several new innovative products and services coming from the company like Amazon Locker and Amazon Flow. Staying connected exactly to what consumers want is what makes Amazon great.

3) CUSTOMER SERVICE - Amazon consistently ranks high on customer satisfaction lists. Bezos believes that a company shouldn’t focus on its competitors but rather on its customers. His most important lesson in service comes from the term “word of mouth”. In an interview in Wired magazine, Bezos tells the importance of word of mouth. Physically, an unhappy customer might tell six people, but that same customer could reach 6,000 online. Most likely, the customer service strategy is Amazon’s most critical success factor. The company consistently ranks high on all satisfaction lists. After all, most of the products Amazon is selling, can be found almost anywhere on the internet. Amazon scores well above other retailers in service and customer satisfaction. In fact, in other words, there are no other retailers that do it better than Amazon. The most amazing thing which truly makes it rock is that it is better in service than companies that are not even retailers.

4) EXECUTION - Despite initial failures, Amazon has gotten things right at the time of executing customer orders. Amazon selects products and services that customers want and need. They have distribution centres across the world that allows them to quickly ship the products. Plus, they have excellent vendor relationships that allow them to offer customers discounted pricing.

5) DIVERSIFICATION - While Amazon Started off as an online bookstore, Amazon now offers everything from nuts to soups. Literally! Much of the Amazon’s success depends on the fact that they are not afraid to sell anything and everything.

6) IN IT TO WIN IT MINDSET - From a loss making company to a profitable one, success factors are closely tied to Jeff Bezos. His desire and innovation to keep moving forward has pushed the company further. No matter how anyone looks at it, Amazon has grown up from a little online bookstore to an industry giant. It will be not wrong if we say Amazon created the industry for total domination.