How Did Amazon Get So Big? (The Marketing Secrets Behind Amazon’s Growth)

How Did Amazon Get So Big? (The Marketing Secrets Behind Amazon’s Growth) | In terms of revenue, Amazon is the biggest company in the world. They have over $232 billion in revenue, and that was just in 2018. ’19’s even bigger, and ’20, ’21 will be bigger as well. And did you know, as we’re getting into the ’20s, Amazon is growing at roughly 20% year over year. That’s roughly $40 billion in more revenue each and every single year that they’re adding to their bottom line. Today, I’m going to go over how Amazon got so big and the marketing secrets behind their growth.

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In 2008, Amazon listed their company vision as, “Relentlessly focusing on customer experience, “by offering our customers low prices, convenience “and a wide selection of merchandise.” This definitely shined in their marketing approaches.

Convenience was a huge factor. Free shipping? Have you ever wondered how Amazon affords to pay for all that free shipping? Well, it’s not cheap. It actually costs Amazon around $1 billion per quarter but how did they make money? Well, then there’s Amazon Prime. There are nearly 54 million Prime members. With a yearly fee of $99, simple math tells you that the revenue generated from Prime alone is roughly $5.4 billion a year, which allows Amazon to offer all the benefits that it does.

Amazon knows when you’re going to run out of paper towels and it can even notify you, show you at the right time and even has buttons where you can push so that way, you’re like, “Hey, I need to automated toilet paper delivery “at this date and time.”

In many cases, they’re not just doing two day delivery, they’re doing same day, if not next day, worst case. And that’s how they’re building amazing customer loyalty, which gets me into my next point, right?

So, he wanted to create an open, transparent product review system where anyone can talk about, “Hey, this is good, this is bad, “here’s what I didn’t like.” And that’s important, because 80% of your future profits will come from just 20% of your existing customers. And that’s why you want to encourage amazing reviews with your products and services. Amazon also has Prime Perks, which has helped them grow fast.

Creating a Prime membership allows loyal customers, right? From free shipping to next day air, two day air, in some cases, some days, even same day delivery. By going above and beyond for your customers in your marketing, and continually offering more and more for the price, this is how you win over customers.

Now, another thing that Amazon did really well that we can all learn from is their email marketing. Now, the email verification for orders allows Amazon to collect people’s information and create Prime accounts if they opt to. This allows Amazon to collect user data based on login information, and make the user experience much more personalized.

Remember, that’s where the web is going, it’s all about personalized experiences versus showing generic stuff. I never see Amazon recommending pet products to me because I don’t have any pets.And then, they’ll even tell me and encourage me to use Audible because they see I’m buying so many business books.

Another thing that they’ve done really well is technological innovations. Look, marketing crap products is really hard but marketing good products makes life easier. Amazon Kindle came out a long time ago and what they started doing is like, hey, let’s make it so it’s really easy to read a book.

Amazon is the undisputed leader in e-readers and it accounts for roughly 80% of e-book sales. Fire Stick, this is an effort to compete with streaming services like Roku and Apple TV, Amazon has created the Fire Stick. It’s become one of Amazon’s most successful hardware hits with over 37 million active users worldwide.

Amazon even recently began partnering with TV companies, like Toshiba, to create the Fire TV, its television paired with the Fire Stick capabilities, and Alexa. Another thing that they’ve done is Echo slash Alexa, right? You’ve seen those Echo Dots or those Alexa devices. There are nearly 118 million home assistant devices in the US alone.

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