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Zusammenfassung von Amazon

Name: Amazon
Rating: 4.4 (160 reviews)
Author: Natalie Berg & Miya Knights

Natalie Berg & Miya Knights

How the World’s Most Relentless Retailer will Continue to Revolutionize Commerce

4.4 (160 Bewertungen)

24 Min.

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What’s in it for me? Discover why Amazon rules the world of retail.

Where do you go when you need to buy a new pair of headphones? Or a leash for your dog? Or a last-minute birthday gift for your niece?

Increasingly, the answer to these questions is Amazon. With over 500 million products on offer, many of them including options such as one-click shopping, same-day delivery, and prepaid returns, the online retailer has become the go-to shopping destination online.

As a result, Amazon is now the second most valuable company in the world, and founder Jeff Bezos is the richest man alive. How did a small online bookstore from Seattle managed to grow into a global empire in just two decades?

In these blinks you’ll learn about the strategies, mechanisms, and lucky circumstances that underpin Amazon’s success. You’ll also learn how retail has evolved in the digital age, what the future of shopping holds for customers and businesses, and what other companies can do to keep up with the retail giant.

Along the way, you’ll learn

the number one secret to Amazon’s continued success;
why more and more online retailers are now opening physical stores; and
how non-Amazon businesses can thrive in an Amazon world.

Amazon is the most successful retailer in the world because it’s much more than just a retailer.

The internet has a few simple rules, and the most recent addition to them might be this: if it exists, you can probably buy it on Amazon.

Founded as an online bookstore in a garage in Seattle in 1997, Amazon now sells millions of products across an ever-growing range of categories. From fashion to electronics to sporting goods, and, most recently, even groceries – on Amazon, it’s all just a click away.

Amazon functions both as a vendor, selling and handling products itself, and as a marketplace, allowing third-party vendors to sell over its platform. But it’s increasingly taking on other roles too. Amazon has quietly developed over 100 brands of its own, from fashion labels to coffee brands. It produces and sells its own electronic devices, most prominently the Kindle e-readers and the Echo voice assistant. And it offers its own payment services, credit card, cloud storage system, and much, much more.

Why invest so much in diversifying its range when the basic principle – selling stuff online – already works?

It’s all part of Amazon’s business strategy, which follows the principle of the flywheel. The basic logic behind it is simple: low prices and good service attract more customers. More customers lead to more sales. More sales attract more third-party sellers. More third-party sellers means more money for Amazon, who can reinvest it to further lower prices and improve service.

If you feed any part of this virtuous cycle long enough, the flywheel will start to build momentum of its own and propel the company to higher and higher levels of success.

To feed the flywheel, Amazon has shifted the boundaries of traditional retail through relentless innovation. For example, to attract more customers, it has continuously expanded its entertainment offerings: Amazon Music and Video allow Prime members to stream thousands of songs, movies, and TV shows. To attract more third-party sellers, it introduced services like Fulfillment By Amazon, or FBA, in which Amazon manages the storage and delivery of other businesses’ products.

In many cases, feeding the flywheel through new products and services initially comes at a high cost. In fact, for the first eight years, Amazon operated at a loss, relying on the patience and goodwill of its investors. But today, the flywheel is finally spinning – and it will be near impossible to stop.

Amazon’s success is built on its dedication to customers.

One simple truth of retail is that you can’t have a store without customers.

Amazon understands this better than anyone else, which is why it’s put customers at the center of its business strategy from day one. In fact, Customer Obsession is the very first of Amazon’s 14 leadership principles.

The Prime membership scheme is the backbone of Amazon’s business model.

The concept of retail incentives like loyalty programs, coupons, and discount cards is almost as old as retail itself. Given its customer obsession, it’s no wonder that Amazon has put a lot of effort into developing its own reward system for loyal shoppers: Amazon Prime.

When it was launched in 2005, Prime membership cost $79 a year, and its main advantage was access to free two-day delivery on Amazon’s broad range of products. But over the years, membership benefits have expanded far beyond shipping.

Amazon is a key innovator in merging online and offline shopping.

There’s no denying that the rise of online shopping has plunged traditional retail into a crisis. While online sales have doubled in the past five years, stores all over the United States and Europe are closing down. Over 20 major retailers, including iconic brands such as Toys R Us, have had to file for bankruptcy in the last few years.

Curiously, in the same period of time, Amazon began to open its first physical stores. In 2015, somewhat ironically, it opened a bookstore in its hometown Seattle. In 2018, it premiered Amazon Go, a cashierless supermarket. Since then, physical Amazon shops and pop-ups have been tested around the world.

By acquiring Whole Foods, Amazon cemented its big move into groceries.

In mid-2017, Amazon made a startling announcement: it had bought Whole Foods, the famous US organic supermarket chain.

Even seasoned business experts were a little confused by the move. At the time, most online retailers’ experiments with grocery shopping had been met with tepid reactions from customers. As early as 2007, Amazon had begun testing its own grocery delivery service, AmazonFresh, in Seattle. But even though it has since expanded to multiple US and European cities, uptake of the service has been relatively slow.

A tech company at heart, Amazon is continuously developing innovative tools to better serve its customers.

If you want to win retail in the age of technology, you’d better know a thing or two about technology. Luckily, Amazon is at least as much a tech company as it is a retail business.

In fact, another of Amazon’s leadership principles is Invent and Simplify. Over the last few decades, they’ve done quite a bit of both those things, investing in futuristic-sounding technology like Artificial Intelligence, robots, drones, 3D scanning, virtual reality, and driverless cars.

In order to meet ever-increasing customer expectations, Amazon continues to build out its logistics infrastructure.

By pioneering one-click orders and two-day delivery, Amazon has been a key driver of rising customer expectations in the digital age. Amazon is the reason why today, when shopping online, customers take it for granted that products are delivered fast and free of charge.

With its launch of Prime Now in 2014, Amazon further raised the stakes for other retailers. Available in over 30 cities in North America, Europe, and Japan, Prime Now promises two-hour delivery on an increasing variety of products, a potential lifesaver when it comes to a birthday, anniversary, or Christmas.

Retailers who want to succeed in the digital age need to deliver what Amazon can’t.

Amazon’s swift rise to the top of online retail and its continued expansion into almost every category of commerce make many business owners tremble in terror of a coming retail apocalypse.

What’s more, it’s very likely that Amazon’s range and flexibility will allow it to continue transforming the landscape of modern retail, pushing customer-centric innovations and disrupting entire industries. But that doesn’t mean that other retailers won’t stand a chance against the online behemoth.

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Worum geht es in Amazon?

Amazon (2019) investigates the rise of the most disruptive online retailer of the twenty-first century, from humble online bookstore to global business empire. Drawing on industry data and insider knowledge, retail experts Natalie Berg and Miya Knights explain why Amazon dominates today’s e-commerce market, how it will continue to revolutionize retail, and what other businesses can do to keep up.

Bestes Zitat aus Amazon

Amazon is not your average retailer because its not actually a retailer.

—Natalie Berg & Miya Knights

Wer Amazon lesen sollte

Aspiring business strategists and marketing experts
Anyone wondering how their business can thrive in an Amazon world
Online shoppers interested in the future of retail

Über den Autor

Natalie Berg is a British retail expert and consultant specializing in merchandising, pricing, and shopper-centricity. She is the former Global Research Director at Planet Retail and runs the consultancy NBK Retail. Her co-author Miya Knights is Head of Industry Insight at digital-marketing company Eagle Eye.

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