Amazon.com is an ecommerce company where consumers can purchase discounted products from large and small companies. It is the world’s largest online retailer in books, electronics, clothing and much more. According to Amazon’s quarterly report in 2017, Amazon had a reported $178 billion in net sales revenue which is a massive leap from five years ago when it reported only $61 billion in 2012. By using consumer focused digital strategies, Amazon has become an outstanding force in the retail industry. Brands are becoming more inclined to sell their products on Amazon’s interface. If you have ever wanted to take a deeper look as to what the benefits are of using Amazon from a seller's standpoint keep reading!
1. The search often begins on Amazon for the consumer
According to techcrunch.com, 79% of consumer’s make their purchases online or on their mobile devices. Consumers are constantly looking for the best price, but with the added benefit of convenience there is no question as to why they reach for Amazon.com.
Per eMarketer.retailer 46.7% of consumers started product searches on Amazon compared to other search engines like Google. This shows the value consumers see in using Amazon for their needs and companies should take note as well.
2. Great additional sales channel
Online retail competition is fierce, so companies must diversify their channels while maintaining a balance to avoid spreading their selves thin. Amazon is a great additional channel for businesses as many consumers are constantly shopping on Amazon. Amazon has a great reach to millions of consumers. According to Statista, Amazon had an average of 197 million unique page views per month as of December 2017, which was head and shoulders above other retail websites page views. The reach Amazon brings to a brand is outstanding.
3. Amazon helps consumers discover your brand
Since Amazon lets the shopper search to their heart’s content, any relevant products will show up on the list of items provided by the website. Consumers can comparison price shop and also read reviews of the product. With Amazon’s vast list of possible products, the consumer will spend time going through the many pages of different offerings to find the right one. This could lead them to your brand. If a customer is curious to what else your company offers this can lead them to your website to make more purchases.
If you would like to keep reading about Amazon and ecommerce, National Public Radio has a great article on the correlation of online consumer behavior to Amazon.
Ever wonder how Amazon became such a giant in the retail ecommerce industry? Here is a video in an interview with Jeff Bezos, the CEO, himself on Amazon’s business strategy.
What are your shopping habits as a consumer? Do you find yourself driving to a store to shop or are you searching online for a product?
How do the stats from this blog impact your idea of how Amazon market's itself or the size of their reach?