Question

What are the key factors of Amazon's success? Compared with other online retailers, how does Amazon improve customers' online shopping experience?

Answer 1

The key factors of Amazon's success are -

1) Having an infrastructure that can support its operations. Amazon serves billions of people worldwide, so it has the marketing, advertising, and operational processes necessary to serve that many people.

2) Stamping out competition. Amazon didn’t just stick to books. They expanded into handcrafted items (outcompeting Etsy). They bought out Whole Foods. They’ve now got Amazon Air to compete against FedEx and UPS. Also There is a Amazon Pay to have a competion with Google pay , Paytm , Phone pay . They also have Prime videos to deal with Netflix and others .

3) Generally keeping their shareholders happy. Notice how Amazon’s stock price is extremely high . That’s because they keep exceeding their shareholder’s expectations via high sales and sound business investments. Amazon is able to keep getting investor funding because of their business prowess, whether it’s entering a new, lucrative industry or buying out a company that can help it compete in a new space its entering.

4) Expanding what they offer for sale. Initially, Amazon just sold books. Today, you can find books, food, pet collars, tables, vehicles, clothing, computers, and god knows what else on their platform. Plus, as stated above, they sell services outside of just products such as advertising, services for business owners to sell their wares, and book publishing.

5) Finding ways to hire employees without actually “hiring” them. Think of the millions of the Amazon sellers that are out there. Are they being paid regular salaries/wages, benefits, and the like by Amazon? No. They’re not officially employees. But, they sell on Amazon. They create all the content that Amazon features on its site (promotions, deals, etc).