Why is Amazon such a powerful e-commerce platform?

Why is Amazon such a powerful e-commerce platform?

Amazon needs no introduction, Jeff Bezos’ e-commerce platform is definitely part of the web giants. Indeed, while the importance of keeping our businesses local is vital, so is the digitalisation of business sales channels. 

Since its creation in 1994, Amazon has become just as much a search engine as it is a marketplace. A lot of people go straight to Amazon when they want to research products, find solutions, compare prices, find alternatives and replacements, etc.

Over the past few months we have been working with a client going through their e-commerce journey. As a drink retailer, our client needed a full understanding of their e-commerce strategy and of their key objectives. It was clear that Amazon was a good avenue for them with large opportunities to grow their business and attract and retain more customers.

Learning about customers

Amazon believes that advertising integrated into a consumer’s shopping journey improves their experience and drives them to research and discover new products. Marcus Wohlsen said in the American magazine WIRED: “Facebook knows who your friends are. Google knows what you’re interested in on the internet. Amazon knows what you’ve bought, and has a pretty good idea of what you might want to buy next”.

Indeed, the range of advertising formats and placements that the platform offers empower sellers to reach consumers researching, actively shopping, and even interested in specific products and categories. 

Being an Amazon seller, our drink retailer client could have a multitude of choices in terms of advertising alternatives on the e-commerce platform: 

  • Sponsored product campaigns would increase their brand visibility and promote new offers or promotions
  • Sponsored brands would enable them to drive even more sales and increase their brand awareness within the search results
  • Sponsored display could help reach relevant audiences on and off Amazon

Amazon takes advantage of their purchase-intent users. The use of strategic data like transaction or behaviour allows very precise targeting and represents a real strength for the seller. With this information you can show customers products related to items they’ve recently browsed and make recommendations based on their search habits. This personalisation improves the customer experience but it also promotes customer loyalty.

Large visibility

When you make your products available on Amazon, you expose them to a number of visitors that you will probably not be able to have on your website and therefore, you greatly increase your chances of making sales.

In addition, the e-commerce platform is used by most consumers that have the intention to buy when on the other hand Google searches are more informational. Indeed, Amazon offers a powerful internal search engine. Using this search bar, the wave of customers on Amazon will be able to find your products quickly and in a very easy way.

Since our client launched their product on Amazon, results have been incredible. With the product page being visited by more than 400 different customers it constitutes a real opportunity for them to convert more buyers but also to improve their brand awareness as a whole.

Trust community for customers

Research conducted by Forbes shows that 45% of consumers read reviews before buying.  The same study states that 82% of customers use their cell phones to conduct online research before they buy a product. This shows how important it is for customers to trust in the product they are going to buy and from who the review is coming. Customers can read about honest experiences from other consumers and base some of their purchase decisions on this.

While product reviews have their importance for the consumers, they also constitute an amazing insight and marketing tool for sellers. Amazon product reviews are a mirror of the consumer’s thoughts relating to a product. The analysis of product review can actually help in understanding consumers’ demand and interests. 

Reviews can also be used as a totally free marketing tool. In the case of our drink manufacturer we have used them to post on social media or other platforms to showcase their products and highlight the positive feedback from actual clients. 

In the end, reviews act as a link between sellers and customers. Constant social activity and getting feedback from the customers can turn the review page into a valuable forum or community.

Let’s have a look at some Amazon success stories

  • Furbo: a smart camera that helps dog owners to stay connected with their pups while away from home – that’s the concept behind Furbo. Amazon was a natural choice for the company which was in search of an international audience. After a boost from an Amazon Prime feature and the help of their product reviews, the young business now counts tens of millions of revenue on Amazon 
  • MusicMagpie: “the world’s largest seller on Amazon” is a British online retailer buying and selling refurbished electronics and second-hand computer games, consoles, books, films and music. The company started in a garage in 2007 and is now sold in more than 200 countries worldwide and has a global audience of 25 million customers

Want to add to your sales channels?

Using our eCommerce expertise, you can add a strong sales channel filled with purchase-intent users and strategic data with transaction or behaviour, drop us a line.