The dotcom bubble burst led to the fall of most online businesses. However, there were a handful of businesses that became a major part in the evolution of online business and retail. Amazon was one of the few exceptions that survived the dotcom crash and today it is single-handedly the world’s biggest online retail store.
Amazon today has grown into an industry of online retail. It was first started as an online bookstore and slowly grew into this dynamic platform where one could purchase a product with a simple click and receive it the next day. This enormous empire that was built by Jeff Bezos has gathered a lot of attention lately by critics, regulators, and even politicians.
This business magnate has become an unstoppable force in the industry and is even facing plenty of backlash for making the local market obsolete. Even though Bezos and his empire have been at the receiving end of a lot of criticism, we cannot help but acknowledge how the company has redefined online shopping. The company functions on a lot of algorithms that reduce prices on a daily basis, while the one-day delivery option is a cherry on top.
In this article we will look at how Amazon has changed the game of online shopping and all the diverse programs it has for a new age of online marketers.
A Brief History of Amazon.com
Amazon was first started in a small office space in Seattle, Washington in 1995 as an online bookstore. Slowly, Jeff Bezos moved on to expand his store for general everyday items. Even though there were other e-commerce companies that used to sell books way before Amazon did, ]they stuck to their business module while Amazon decided to take it a step further. Amazon diversified its product range towards the end of 1998.
By the early 2000s, Amazon had started selling everything one can think of. Today, Amazon sells some of the most diverse items from diapers to electronics and even streaming services. Jeff Bezos took everything into consideration and continued expanding his online platform. This made it easier for customers to compare prices with other products online.
All of a sudden it became very easy to buy something online without really having to go out and scout for it. So, if you happen to live somewhere remote, you still had access to a wide array of products online that were hard to find otherwise.
In 2018, Amazon earned $258.22 billion in sales. This is more than half of the online market and was 5% of the total US retail sales. Though most of their revenue was organic, Amazon did take some major acquisitions from online retailers like Whole Foods, Zappos and Goodreads. Sadly, Amazon has still not caught up to Walmart’s sales which were $331.67 billion this year. At this rate, Amazon will soon surpass brick and mortar stores, and in about 25 years, Amazon will become the world’s largest retailer.
Here is how Amazon is redefining online shopping:
1. Endless Array of Products
Amazon has one of the worlds largest inventories. Soon after Amazon expanded to all legal products and tied up with local retailers as well, the website hosted every item one can think of in the open market. For instance, before you go to buy a printer from a retailer you are likely to check the price on Amazon.
Amazon slashes prices left and right. With new marketing incentives, Amazon allows business owners to promote their Amazon links through influencers and their own Amazon promo code. Imagine a store filled with a wide range of products with varying prices. Sounds like a retail shopper’s dream.
2. Buying Groceries and Clothes Online
Amazon really stepped up their game when they started selling groceries and clothing online. Now, rather than going to the convenience store every week, you can have Amazon get you all the groceries you need in just a day. Thanks to their Amazon Prime and Amazon Prime Now features, groceries are one the major contributors to their overall sales.
With the addition of Prime Wardrobe, Amazon boosted its sales by a decent percentage. With attractive return policies and affordable rates, Amazon swept the clothing market. The platform makes it easier for people to choose and purchase their clothes. Customers thoroughly enjoy this spectrum of online retail.
3. Marketing Incentive Programs
The new era of retail shopping needs a marketing model to match. Amazon lets retail shoppers, and even normal customers, work as online affiliates and marketers for the platform. Local and small scale celebrities get sponsored by one of many Amazon services and anyone with a laptop and internet connection can become a digital marketer for the platform.
Amazon has also given business owners the freedom to drop their prices with Amazon Promo codes and discount coupons. The more these promo codes sell, the more commission the business owner receives for that product. This has really improved the marketing game of the company.
Amazon is a good example of one of the most successful business empires of our time. Its ability to achieve business success is considerably influenced by the idea to change the long-lasting traditional way of how things were bought and sold. The retail concept is sound, though the payment methods are a little questionable. Amazon makes sure the consumer and the seller are comfortable in the process.
Re-imaging and reducing the total time taken to ship items across the planet has played a major role in the company’s success. Amazon has slowly expanded to smart home technology, warehouse management, and aviation robotics. Amazon plans on dominating every market soon. At the end of the day, all of their data is strategically planned in heavily complex algorithms to make you buy more stuff.