What Online Retailers Can Learn From Amazon
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Only five years ago, Amazon ranked 15th behind Sears and Publix in the National Retail Foundation’s list of top 100 retailers, with $26 billion in sales. Today, Amazon runs in a league of its own with $80 billion in online sales, eclipsing second place Walmart’s $13 billion by sixfold. Moreover, while Macy’s, Gap, Nordstrom, Target and others posted disappointing sales and stock performance last year, Amazon knocked it out of the park with 16% growth. And last but not least, here’s the final jewel IN the crown: Amazon has become the most relevant brand to millennials in America.
How did Amazon do it? How did it build its e-commerce empire over a relatively short period of time?
It’s undeniable that Amazon’s founder, chairman and CEO Jeff Bezos’ relentless business innovation — from the widely popular Amazon Prime subscription service and free two-day shipping to one-click purchases — has played a key role in winning the hearts and wallets of more than 300 million Amazon customers worldwide. Amazon’s secret sauce is predicated upon a simple truth about human behavior: consumers buy when the act of buying is simple, easy and convenient. This is reflected in a recent consumer survey in which millennials reported that Amazon represents “a powerhouse of pragmatism, [and] is No. 1 in every measure of usefulness and dependability.”
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