Amazon is a multinational company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. Their success is not an unfamiliar thing to the world, it has achieved numerous milestones in the last 26 years.
Initially, Amazon used to sell books only. Now in 2020, it’s providing numerous services and is among the “top 5 most valuable companies in the world.”
How has Amazon achieved all this in the last 26 years? and What are the key elements of their success?
Digital marketing is one of the many key elements in the success of Amazon. Let us understand how digital marketing played a vital role in Amazon’s success.
“Earth’s most customer-centric company”
This has been Amazon’s motto since 1994. Means, that they were determined to provide services, where customers can find anything they want online. And for that, they attempted to offer its customers reasonable price possible and conveniently.
Jeff Bezos, the founder of Amazon, has always emphasized the importance of a company being customer-focused more than other aspects such as product-focused, competitor focused, etc.
Digital Marketing Approach By Amazon
There are various strategies that Amazon has implemented, few are stated below:
1. Customer’s Review.
Amazon customer review service has been one of the fundamentals of digital marketing services. While browsing the Amazon website a user comes across reviews, before and after the purchase.
Reviewing services are now very common and have been implemented by various websites, amazon has provided a blueprint for the companies that how to implement a model that would efficiently.
A customer can rate, write reviews, and upload a picture of the product as per their experience. Reviews are considered to be very important because while purchasing something online customers can’t touch or test the product before they have made the purchase and the product has been delivered, reviews provide indicators of the quality of the product to the buyer.
Amazon also provides community moderation by encouraging customers to vote with the option “Helpful” on the relevance and utility of the reviews left by other customers and customers can ask a direct question about the product as well.
2. Free Shipping And Discounts.
The free shipping method helps in increasing the customer purchasing limit. Although if it is applicable on order above 1000 rupees, the customer would try to reach that amount by increasing basket size to avoid additional charges. Eventually, it is a very beneficial deal for them.
Amazon provides multiple discounts on various products which is not possible to get in offline stores, hence more customers are driven towards purchasing offline.
3. Communication With The Customer.
Nowadays every e-commerce company notifies customers about their order confirmation, delivery date estimates, shipment, and delivery notification.
However, 15-10 years ago it wasn’t possible to provide such services easily by every company. Most importantly, Amazon has been setting models for other e-commerce companies back then. As an example, in the American customer satisfaction index, amazon got a score of 88. And it was the highest customer score ever for any online or offline services industry.
4. Creative Digital Marketing Campaigns.
Through Digital Marketing Campaigns, a company promotes its product on online platforms. It facilitates them with more sales and increases brand awareness.
In India successful campaigns of Amazon are:
Digital platforms that are used for Digital Marketing campaigns are Email, Social media, Google Adwords, etc.
5. Innovation And Technology
Amazon has achieved various milestones in the world of technologies and eventually making its lead in the Digital Marketing world. Using Machine learning, Artificial Intelligence, and Computer vision.
Some examples are stated below:
Amazon Go: It is a new kind of store with no checkout and no line. It uses the “Just Walk Out” technique. Using the app, customers can enter the store, take the product they want. It will automatically add to the virtual cart, so, they can just walk out of the store.
Amazon achieved the vision by Deep Learning Algorithms, Computer vision, and sensor fusion.
Amazon Prime: It is a paid yearly subscription that provides fast and free shipping as compared to normal Amazon service and also provides accessibility of unlimited streaming of TV shows and movies.
Alexa: Alexa is Amazon’s voice responding virtual assistant. Just like Siri is for Apple, Google Assistant for Google.
Kindle: It is an e-reader that enables users to browse, buy, download, and read books, newspapers, and magazines from the Kindle Store.
Amazon Food: Amazon begins the food delivery business in India. Getting in competition with Swiggy and Zomato. Importantly, the company has launched services amid COVID-19 when food ordering has been down by 80%. And also, providing services on the regular app with availability at selective parts of Mumbai and Bangalore.
Amazon “Make in India” Initiative
“We are going to use Amazon’s global footprint to export $10 billion of ‘Make in India’ goods by the year 2025”
– Jeff Bezos (Founder & CEO, Amazon)
Jeff Bezos visited India in January 2020 and faced a backlash from Indian traders because of the e-commerce company’s popularity and expansion, many small traders’ occupation has been jeopardized.
He then assured that Amazon will plan to sell $10 billion worth “Made in India” goods globally by the end of 2025. With this strategy, Indian sellers will get access to millions of customers across 180+ countries. Moreover, Amazon announced $1 billion for digitizing Small and Medium Enterprises. After completion of this initiative, numerous traders will get the opportunity to sell their products to a huge audience in India as well as globally.
In conclusion, Amazon through its successful digital marketing approach will give an opportunity to Indian traders to make its huge impact on the global market.
SEO In Amazon Digital Marketing Strategy
Amazon’s website has numerous sellers for an individual product, however, the question is what kind of SEO approach a seller should use to get its product ranking higher?
Alike Google, Amazon uses the A9 algorithm for determining the rank of the products in its search results. Also, it is very much similar to Google’s search algorithm. The only difference between them, A9 focuses only on sales conversions and isn’t mature enough as Google’s search engine.
It is crucial to use relevant keywords in the process of an individual product listing. Keywords are one of the vital factors for them to decide the relevance in search queries. It eventually helps to set higher rankings to the most relevant pages.
The key to Amazon’s success is it’s highly efficient Digital Marketing Strategy. For the last 26 years, it has been a customer-centric company and has pledged to do so in the future as well.
Amazon has been the flagbearer of how Digital Marketing can be absolutely perfect strategies in this evolving world of technology.
In the 21st century, competition is very strong. Companies should try to innovate and create services or products that can make customer life easier.
Lastly, innovation leads to the success of the company 😉