Amazon is the undisputed king of e-commerce. What can Polish e-shops learn from it?

Last year Amazon boasted gross revenue of $277 billion. eBay reached "only" $89.83 billion. Since the mistakes have already been made, conclusions have been drawn, and huge sums have been spent on development, it is worth taking advantage of those experiences.

Sascha Stockem, founder and president of Nethansa, a company that helps Polish businesses enter Amazon and provides comprehensive sales support, offers advice on what to imitate from the American king of online sales.

"Imitation is the sincerest form of flattery," writes Jeaniene Frost in the book "Halfway to the Grave." Let us be clear: online stores that rest on their laurels and do nothing beyond cashing in are halfway to the grave. Without constant development, staying in the market over the long term is close to a miracle. If your e-commerce business starts to resemble a zombie, its days are already numbered. Fortunately, to save it, you do not have to reinvent the wheel. It is enough to observe how the best are growing. In that group, Amazon is consistently at the forefront.

Jeff Bezos's company owes the most to its comprehensive approach to sales. The customer can feel cared for from the moment a purchase need arises to collecting the purchased product, checking it, and even returning it or filing a complaint. Amazon makes it easier for the buyer to go through every stage of this process. It is simple, fast, safe. Polish online stores can certainly learn these procedures and this type of thinking – maximally focused on satisfaction. In Poland, things are not bad in this respect, but they can always be better. The fact that Amazon does not yet have a platform dedicated to the Polish market may be an advantage. Domestic e-shops have time to prepare for the expansion of the online sales hegemon by introducing solutions that will help them remain competitive.

Every customer matters

Every customer matters

Amazon not only works on reaching new customers through a well-thought-out marketing strategy, but also does everything to retain current users. Amazon banks on loyalty. It keeps customers longer and does not let them leave – more precisely, it makes them not want to. The customer is supposed to get what they need. Hence the constant work on expanding the assortment, the recommendation system, and the search engine itself. If a user feels tired of searching, misled, or confused, they are unlikely to come back.

That is why Amazon focuses on clarity and speed of use. The site is not "overdone." Using it is simply meant to be fast and intuitive. And that is the most important thing. On Amazon, we will not find unnecessary decorations and other elements that could distract, mislead, or make using the platform more difficult or time-consuming. The buyer should do only as much work as needed – no more. And preferably less. The right design is worth its weight in gold here. This is confirmed by the McKinsey Design Index study, which shows that companies that have mastered the design of their services and products enjoy on average 32 percent faster revenue growth than their competitors.

Designing a service like Amazon requires exceptional sensitivity to the needs of the end user. You have to step into their shoes and try to understand, for example, why they do not complete purchases they have started. A study conducted by the Chamber of Electronic Economy on a group of 1,130 Polish internet users shows that every third Pole abandons their online purchases. Abroad, it is no better. According to a SaleCycle report, globally as many as 75.6% of shopping carts are abandoned. The main reason for this is shipping costs.

Amazon understands this perfectly and makes every effort to keep them as low as possible. The same applies to a difficult or expensive return and complaint process. Here Amazon is ruthless with its partners – sellers. The slightest violation of the rules in this area can result in account suspension. This strictness is another manifestation of consistent customer-centricity. A consumer on Amazon can feel as safe as at home, and that attracts them like a magnet.

Sales safety is paramount at Amazon. This aspect is especially important in a store that sells used products – in this case, buyers are most afraid of making a purchase. That is why it is necessary to minimize the possibility of returns, describe the product and its possible defects or wear perfectly, and give the customer a sense that they are not buying a pig in a poke.

You will not find a pig in a poke here

You will not find a pig in a poke here

In Jeff Bezos's online store, one simple rule prevails: the product must be described excellently so that the buyer has as few doubts as possible. On Amazon, internet users will find all information about the product, even the smallest details. It is also worth mentioning innovations from the world of artificial intelligence, such as Amazon Echo Look, Alexa as a stylist, and the Style Check tool. They are not only a treasury of knowledge about individual assortment items, but also match them to the customer and suggest what they should buy. Again – easily, quickly, and pleasantly. A better-matched product also means fewer returns and the associated costs.

Product information does not end with that prepared by manufacturers or resellers. It also includes consumer opinions. Amazon allows reviews to be left in various formats – including by adding photos or video. A study conducted in the United States shows that over 60 percent of consumers would like to learn about a product through video, while only 15 percent prefer text form.

The power of recommendations

The power of recommendations

It is worth implementing a system for publishing bestseller rankings on your site – overall sales results or those of various departments. Such rankings on Amazon are updated every hour, but I think that once a day, or – in the case of smaller stores – once a week, will still be a big advantage. Customers feel informed, sellers feel appreciated, and sales increase because people want to stay up to date and, as sociological research shows, readily follow others.

Recommendations work similarly to bestseller rankings. Many online stores use this function – these are suggestions such as: "other customers who bought this product also bought..." – and here is a link to another item from the store's assortment.

This approach frees us from thinking and shortens the time spent searching for products. In the case of online shopping, that is a big plus. Online stores should understand that ease, speed, and social confirmation of the right purchase (we buy what others have chosen) are the foundation of a good business.

It is worth learning from Amazon. Many years of experience, hundreds of millions of customers, and numerous analyses – these are things most stores can only dream of. The good news is that you do not have to reinvent the wheel. It is enough to examine Amazon's actions under a magnifying glass and draw conclusions. It is also worth considering entering foreign markets through it. Such a step, like learning from the mistakes and successes of Jeff Bezos's company, can bring considerable profits.

 

 

See also: AMAZON with a new payment method

Summary

Amazon builds its advantage on customer-centricity – from a clear interface, through fast shipping, to ruthless enforcement of its rules for sellers. Polish e-shops can draw on these patterns before the American giant enters the domestic market. The key lessons are caring for customer loyalty, minimizing cart abandonment (globally reaching 75.6 percent), and rich product descriptions and video reviews, which over 60 percent of consumers want. It is also worth using bestseller rankings and purchase recommendations, which make decisions easier and build social confirmation of the choice.