If you are still not selling products on Amazon, you might be missing out a lot. Amazon is such a huge marketplace and it is very simple to sell products to make money, if you know how to do it. Another great thing of Amazon is that they can do most of the hard work for you. You just have to source product and leave the rest on Amazon to get endless traffic to your site.
When it comes to dominance in ecommerce market, Amazon always ranks the top position. This behemoth owns around half of online market share and around 44% of searches on the products are done on Amazon’s search bar. If you ask CEO Jeff Bezos about it, he will also say it’s just a beginning.
Even some of the retail biggies in the world are having tough time to deal against Amazon. Several companies like Apple, Wal-Mart, Costo, and Macy’s are still unable to stack up over Amazon.
Don’t Compete, Just Co-Exist
So how can you even stand a chance to compete with this giant? Actually you won’t! Instead of competing, you should focus on how to make your own presence and serve customers. You don’t actually need to compete.
In fact, you will never be able to invest such a huge capital and time to build anything like Amazon. No matter it is scalability, infrastructure, or huge sales numbers, no one can beat Amazon. They also have huge physical presence. Some may suggest you to compete it in other ways like free shipping and huge discounts to your customers, even though you cannot get past their scale.
When it comes to product pricing, you might still be behind to offer better deal than price on Amazon. Of course, free shipping is deal breaker, because they can afford to provide such a great deal.
But customer service is a realm where you can co-exist with Amazon. They still have to face customer complaints like anyone else. In customer loyalty and relation, customer experience matters the most. Though you may not have motives and means of largest online retailer, you can still offer great customer experience that everyone expects. Here are few of the ways to offer better customer experience like Amazon in your budget –
Great Product Offering
When it comes to sales, Amazon is the leading player with ‘winner takes all’ approach. They never want to miss anything in any category. But you simply can’t do this. It takes huge range of products. Instead, you just do the opposite. Sell in a specific niche. You simply can’t entertain wide audience but Amazon can’t satisfy each need of audience in every branch. This is where you can fill in the gaps. If you have audience and decent product range, just get started. Look at current product offerings and try to narrow down your niche.
Be sure to curate products which meet customer needs instead of being too competitive on pricing. According to studies, poor quality product is another main reason after poor experience a customer can ditch your business. So, put some additional efforts on promotion and marketing of your products and ensure they work for your target audience. Look for other smaller niches and categories to serve your audience. You can find profitable, smaller niches with Amazon’s categories, which can fit well with your existing product line and customer base.
Convenience is another main reason Amazon stands out. They offer services like customers can get specific products every month automatically with Subscribe and Save option. They also offer Amazon Prime subscription with some perks like unlimited streaming, 2-day shipping for free, and other services by Amazon.
They also have Amazon Pay for added convenience. This way, customers can buy items from other retailers with their existing Amazon account. Adding subscription not just adds convenience, but also helps improve revenue.
According to a research, businesses can double their revenue with subscriptions with significant growth. To get the most of subscription model by Amazon, you can offer subscriptions that customers can renew for specific products.
Use Customer Data
Amazon has whopping 300 million customers worldwide. But they still keep an eye on every customer. They keep an eye on every detail like IP address, search queries, OS, wish lists, order history, and reviews, of each customer. This way, you can learn about their key strategies and find out how they can best serve their customers in different ways. Here are some of the reasons to use customer data –
- Recommend products on the basis of wish lists, last searches, and order history
- 1-click ordering on user profile
- Supply chain management as per customer locations
- Cloud storage of user data
- Optimization of product pricing on competitive data and search inquiries
According to a former Amazon employee, Amazon can track both what people search and unable to find and what they are buying. It gives Amazon an edge over competition in different ways. However, you can also use competitive information and customer data to improve product offerings like the way Amazon does.
Work on customer service
Last but not the least; best customer service is the best way to stay ahead in competition with Amazon. In customer service, Amazon actually does really well. Around 67% of customers told that they were really happy with their service. But what actually makes your customers happy?
According to a Get App Lab research, a sensible, real human being on the other side is the most vital aspect of good customer service, no matter how it is offered, i.e. through phone call, email or chat. When the conversation is personalized enough and when rep was real, customers are pleased to the results.
This means you should have real people to provide customer service. You can shorten response times with some automation if you have a team to manage customer queries. You can outsource the work with customer service programs if you don’t have huge team for customer support. It might cost extra, but it is really worth the cost for customer loyalty.
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