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05

How Amazon created e-commerce.

 

In just its first-quarter earnings this year, Amazon reported a revenue of at least $75.45 billion. But nobody really needs to be told how big or successful Amazon is, or that it’s had an overwhelming influence on the marketing industry.

 

While e-commerce has evolved in the last 20 years, it was Amazon that did the most to alter how we buy, sell, and transact. During that time, the company has not only been able to adapt to the constant changes in shopping and technology trends, it’s been among the most innovative companies in the world, and now claims most of the e-commerce market.

 

Amazon changed the economics of how we shop.

 

According to survey data from Pew, in 2000 only 22% of Americans had ever shopped online, now 80% do, at least somewhat regularly. From its beginning in 1995 as a bookseller, its ability to innovate and constantly reinvent itself made it the powerhouse that dominates the market today.

 

While most other online stores at the time stuck to one type of product or service, Amazon did the exact opposite and expanded what it offered to its consumers.

 

This decision to diversify their services with the market trends allowed them to continually meet the interests and expectations of their customers. As a result, Amazon cemented itself as a leader in the ecommerce market, helping it evolve to the customer’s benefit.

 

A steady marketing evolution.

 

In the 2000s, besides selling almost everything you could ever want, Amazon opened up its platform to third-party retailers, and now sells more than 12 million different products, from sausages to sunflower seeds. This also meant it became easy for customers to compare prices and products, and see reviews, in a way that was impossible in person.

 

In 1997 Amazon introduced one-click shopping. Until 2017, Amazon was the only online retailer that offered this purchasing method to customers, where customers didn’t need to re-enter their information if they had shopped there previously. Instead, with just one click, the order would be ready.

 

In 2005 it launched Amazon Prime, streamlining the ordering process, allowing customers to choose their ordering process, receive a free two-day or same-day delivery, and stream their favourite movies and TV shows. Amazon then expanded this with their return policy that allows dissatisfied customers to return their product for a full refund.

 

And now we have the Amazon Effect.

 

Amazon’s impact in the ecommerce world is often summarized in one phrase: The Amazon Effect, which refers to the difficulty many companies face when directly competing with Amazon.

 

Amazon’s huge product selection, fast shipping 7 days a week, free returns, low prices and ‘Prime’ subscription service, all create high customer expectations for any retailer hoping to compete.

 

But of course this is just one aspect of how Amazon has changed ecommerce, because if other retailers do hope to compete, they must follow Amazon’s example by adapting their services to better meet their customers’ needs.

 

At Harrison Carloss we can integrate delivery platforms directly into your ecommerce website, making delivery quicker and seamless for both you and you’re customers. Get in touch with our team today to find out more.

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