In just a handful of years, Amazon went from an obscure digital bookstore to the biggest eCommerce retailer in the world. Amazon is synonymous with online shopping, so naturally, the eCommerce giant set the standards by which the rest of the industry now operates.
But how has Amazon changed product strategy for its vendors, competitors, and partners? How has it changed manufacturing? And what do these changes mean for the future of eCommerce as a whole?
Amazon has altered the nature of the game when it comes to digital sales. Here, we explore how.
Amazon has grown to become one of the most successful and influential businesses of the 21st century. It has done so by adapting to changing technology and shopping trends with a series of customer-focused innovations. These innovations allowed Amazon to diversify their offerings just when other companies were tightening their belts, leading to explosive growth for Amazon and a revolution in the way we think about online shopping.
But a few of Amazon’s transformational innovations have had more of an impact than others. These features have become the standard by which other eCommerce companies are measured and they increasingly make Amazon a great platform on which to sell. They are:
Pioneered by Amazon, one-click shopping has come to redefine what users expect from an eCommerce experience. One-click shopping means that shoppers can simply log in to their Amazon accounts, then purchase desired items with a click of a button if they so choose. This makes online shopping fast, easy, and exceptionally convenient.
Amazon, in fact, was the only online retailer until 2017 to offer such a seamless purchasing experience. This drove users to the platform while setting a new standard for other eCommerce companies when it comes to making online shopping simple and fun.
Next, Amazon’s ability to deliver goods quickly and efficiently has been a massive boon for the platform. Since 2005, Prime delivery has been reshaping supply chains and customer behaviors, building a network of goods transportation that is efficient enough for Amazon to guarantee two-day shipping on many purchases. Even the return process is comprehensive and efficient.
Exceptional delivery services make Amazon a trusted platform for shopping. This was especially important during the supply chain challenges of the COVID-19 pandemic, when vendors benefited from using Amazon’s existing network.
With convenience and fast delivery in place, Amazon takes its marketing potential one step further by applying customer data. This allows Amazon to offer personalized product recommendations, deals, and programs that keep users engaged and loyal.
How many of us have added a product to our Amazon cart after seeing it listed in recommended deals? Personalization is impactful because it tailors content to what platforms already know you are interested in. By pioneering personalization, Amazon created a sales engine that is capable of skyrocketing your sales.
With these features, Amazon has built a new set of expectations around eCommerce. Online customers want convenience, speed, and personalization. Providing these is possible, but it requires online vendors to adjust their product strategy and manufacturing approaches to do so effectively.
So how do these factors change product strategy and manufacturing processes for eCommerce businesses?
The answers all depend on you. It takes constant innovation, research, and awareness to produce and sell an effective product. No matter what marketplace you are operating on, Amazon’s innovations mean you have to stay current and use data-driven insights.
In determining an effective product strategy, for instance, you must come up with ways to address market changes and overcome any obstacles to your business goals. Doing so ensures that your product will be successful.
In the Amazon era, adaptability is an absolute must. Finding products to sell on Amazon, for instance, requires a constant evaluation of shopping data trends and an ability to network with other vendors and markets. Without adaptability built into your product strategy, you are likely to lose out to the constantly evolving Amazon marketplace.
On the manufacturing side of things, Amazon has driven some of the top eCommerce trends of the day. These include a focus on innovation, direct sales, and a streamlined customer experience. Offering any of these features to your customers requires heavy data analysis and application.
All told, the impacts of the massive Amazon marketplace on eCommerce product and manufacturing strategies means that eCommerce professionals have to do more research. Data is necessary as are the tools to apply that data in convenient, personalized business practices.
Amazon has reshaped the way customers shop online. To get ahead of the competition, you’ll need to optimize your offerings to accommodate the new digital environment. Fortunately, by applying innovative, data-driven strategies towards your product strategies and manufacturing processes you can better optimize your eCommerce business for the Amazon world.
Start by exploring the ways that Amazon has changed the industry, then build an adaptive approach to making and selling products. With the right eCommerce tools, you can thrive even as physical retailers take a hit.