To succeed as a major retailer today, you need to effectively manage comments, recommendations, catalogs, and ads. Supply and demand are two continuous lines that must be connected. Everything must work as one. It is Christmas in the Amazon because it browned the whole picture. Amazon has set up a path that others can follow. In this article for RetailTechNews, Eric Tucker (in the picture below), co-founder, Pocketmath, explains what other retailers can learn from their success.
In this festive season, Sears Roebuck & Company, an essential part of American life for generations, has celebrated the closure of its Austin, Texas store, where Pocketmath traces its roots. Similarly, the absence of R Us game is remarkably absent, after US stores closed several months ago. We can beat the drums with words like "fenced gardens" and absolute encouragement of bricks and mortar. These retailers did not have to die, but they needed to evolve.
Today, I am interested in the reasons why there is no competition at Amazon. People at Walmart, Target, and other usual suspects are certainly trying to win by playing a game inspired by e-commerce.
With such idiots fighting for survival, how will the dominance of the Amazon continue? How does the landscape look to its competitors? How can others borrow from this success?
Amazon searches products, recommendations, and ads better than anyone else. What? Amazon has an unprecedented strength in feedback cycles.
The breadth and depth of customer relations leads the superior context
As consumers discover, buy and review, the company connects more points than anyone else. Amazon understands buyers because they can pool audiences based on hundreds of hours of interaction between a person and a company.
Amazon knows the consumer's journey. Amazon knows what competitors' products are being browsed, what the other has shopped for, and when to buy. Moreover, Amazon has reviews that clearly show what the consumer thinks. Amazon even knows which review draws attention to anyone who is past it.
Each review is a treasure trove because it puts the product in context. As we build audiences, Amazon can categorize and categorize products. Categories and product categories can then be matched with the public. The understanding of products and the public converges simultaneously.
When you search on Amazon, the company can take advantage of positive reviews about a product to respond more accurately to your query. The new electric toothbrush may be wonderful for its ability to fast shipping, which can not be found in the product description. Instead, the top 12 reviewers had great things to say about its fast shipping. So, the results for a "quick toothbrush" are immediately available.
With each cycle of browsing, searching, purchasing, and possibly revision, optimization comes. Everything that happens on Amazon improves the ability of searches, recommendations and ads to deliver the right product to the right consumer more accurately.
The larger the product catalog and the more you browse and buy, the better. No wonder the largest e-commerce company in the world jumps itself.
With increased privacy regulations and GDPR, Companies like Amazon have another ace up their: approval. These are sites that consumers are going to seriously buy. Just as they wish to obtain their credit card number, they are willing to agree to use their data.
So, what is Amazon's secret to success? In three words: "The Ultimate Walled Garden".
Now, I can go on singing on Amazon's logistics, rock service, or service-inspired invasions.
When Jeff Bezos started building the Amazon, he was laughing at the room because of his view of the Web site selling almost everything. Well, Mr Bezos, you're doing a great job! By having such a large footprint across many customers' needs and desires, Amazon can improve customer experience and match customers to products better than anyone else.
What can others learn from Amazon's success? The more things you can put together, the more chances you'll have to build. The depth and breadth of engaging customers is yours. You should link them to every aspect of your online market and your ad.
Of course, you do not necessarily have to pay for all this advertising. As a marketer, you can get your dealers! You have another revenue stream in advertising because you enjoy the depth and breadth of interaction with customers.
How to borrow competitors, have outlets
Now that Amazon has proven amazingly successful with its model, many retailers are keen to borrow pages from the rules of the game. Some do well when dealing with a few sectors at once, but no one seems to enjoy Amazon. While more vertical sectors appear to increase the "Amazon effect", there is a lot of money that can be made without owning a full pie.
H-E-B's flagship chain in Texas has launched a competitive delivery service. The privately owned H-E-B, a privately owned company, is a multi-billion dollar business that knows a thing or two about size, logistics and customer satisfaction. H-E-B is a well-known brand that people can search for while searching for lower prices with convenience in delivery. You will be under intense pressure to find Texas not shopping at H-E-B; this kind of market penetration can translate into massive data on a very wide platform for consumers.
Both H-E-B and Amazon Whole Wholes link online and offline purchasing behavior. H-E-B does this by allowing customers in specific stores to see the H-E-B Go application. Whole Foods scans the QR code from Amazon Prime members for discounts.
BazaarVoice, based in Austin, is a commercial assistance company that enters and thrives in e-commerce. Says BazaarVoice has an informal focus on receiving signals from Amazon. The company has been exploited for Help Wal-Mart With its assessments and reviews.
When Cosmic was acquired in 2011, Wal-Mart funded its own labs to pursue growth opportunities driven by digital solutions. Wal-Mart has long been adept at supply chain management. Amazon-like feedback cycles can further improve the path from the factory and even design the product to the consumer.
One can say that while Walmart provided the most impressive commercial examples of supply management, Amazon has allowed the other side of the equation: demand side. When the feedback used to generate demand is milled along the way to the beginning of the presentation and the creation of products, things can occur from the next level.
I see plenty of room where lots of competitors will fill the ports. Not all efforts need measurements. Retailers such as The Home Depot offer a selection of services, services and amenities. It may take some time before Amazon can get 2 x 4 inches of 8 feet of stock inside the store in less than an hour at an affordable price.
A long list of traditional brick building retailers builds an interactive online experience. Home Depot has effectively combined online stock reviews, availability, reviews and purchases with quick and easy capture at the store, in-store returns and face-to-face collaborating staff. Similarly, there are well-established experiences in many shops that serve hooks. Some examples include Neiman Marcus, Saks Fifth Avenue, Balls & Barrel, Spikes Liquor, Texas, Uribley Auto Prad, Plus Plus, and many more.
For international markets, where Amazon does not have a strong presence, it will be a race for the critical mass that supports the guidance cycle for advertising, discovery and review-buy-buy-review (and repeat). Dominant companies abroad can benefit from their current market recognition, or simply be the first to acquire scale.
Now, please excuse me. I need to finish my shopping at Christmas, order groceries, and get a charger for a dead car battery while all the benefits of buying Nature Conservation Organization. I will only need one website and come with a credit card that they gave me with 5% rebates on everything. How is this for an ecosystem?