In just 23 years, Amazon has gone from a relatively obscure book business to a dominant online retailer, cloud service provider, and much, much more. What it is the most famous for, however, is that it is undeniably the world’s largest bookstore. A fun fact is that when it made this claim in 1997, Barnes & Noble sued Amazon because it believed the claim was false. Amazon may have settled at that time, but then went from being a player in the book world to being the dominant player.
Amazon’s Secret Sauce: One-Click Purchase…
What is it that has made Amazon so successful in this area? Its philosophy of making everything as easy as possible for users and being innovative has been credited with massive success. Amazon was the company to develop and patent its own purchase software, and it was a real game changer. Before this, cart abandonment statistics were huge at around 70%. The one-click purchase software practically eliminated this problem.
Think about it – when you use a shopping cart online, there are a lot more steps involved. You have to add the item, proceed to the checkout, put in your payment and shipping details and then confirm the purchase. That’s around four to five chances to second-guess your purchase before the money actually leaves your bank account. With one-click purchase, however, all that information is stored on-site. Your default card is automatically debited the minute you hit the button. Amazon makes it as easy as possible for you to make an impulse purchase.
…And Marketing For All
The next thing that the company excels at is in promotions and marketing. The company allows users a lot of freedom when it comes to running a promo or sales-boosting offer on Amazon. If you publish an e-book with Amazon, for example, there are several different options open to you. You can run a five-day promotion from time to time where the e-book price is reduced or even free. You can opt into programs like Prime and Kindle Unlimited. And, with KDP Print, people have the option of buying a hard copy of the book at full price. That’s where you stand to make the best money as the author.
Amazon has a lot of innovative techniques for getting people to buy even more. It has the standard recommendations based on what you have viewed or read, but it also takes things further. Lately, Amazon added an option to buy a book as a giveaway or promotional item for business. If you count the innovative way they have started to use drones as a delivery system, the future really looks bright for Amazon.
As we’ve explained in the past (“Why We Love Amazon” and “Writers: Stop Romanticizing Rejection“), we love Amazon for opening the gates for writers to become published authors. It has given many us our first break into publishing and has helped many of us make a living through writing.
That’s why I was excited when 16best.net kindly allowed me to share an amazing infographic they have produced called Amazon, The eCommerce Leader, that details Amazon’s extraordinary history and some of the many records the company has broken.