All you need to know about Amazon, 11 reasons for it’s success story

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Updated on: Educator Review By: Michelle Connolly

Amazon ( is a well-known cloud service provider and the biggest online retailer in the world.

It began as an online bookstore but has now evolved into a web-based firm primarily specializing in e-commerce, cloud computing, digital streaming, and artificial intelligence (AI) services.

The firm, which uses an Amazon-to-buyer sales model, has a massive product selection and inventory that allows customers to purchase almost everything, including apparel, home products, furniture, toys, jewellery, books, movies, electronics, pet supplies, and gourmet cuisine.


Since being established on July 5, 1994, by Jeff Bezos in his Bellevue, Washington, garage, it has gone a long way.

On July 16, 1995, Amazon introduced itself as an online bookseller. Bezos first formed the business under the name Cadabra, but he eventually changed it to Amazon. For the benefit of alphabetical placement, Bezos allegedly searched a dictionary for a term starting with the letter A. He chose this name as a nod to his desire for the corporation to be as enormous as the Amazon River, one of the world’s greatest rivers, and because it was unusual and exotic. The company’s mantra has been “become large quickly” since its start.

The launch of Amazon Prime Free two-day delivery is provided for Amazon consumers using this subscription-based service throughout the 48 contiguous United States, along with other advantages for reading, shopping, and streaming. According to the company’s website, the current cost of this service is $14.99 per month or $139 annually.

Amazon has a constantly growing selection of goods and services. A list of its significant offerings is shown below.

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  • The Amazon Market. Third-party shops can promote and sell their products alongside Amazon products on Amazon’s e-commerce platform.
  • The Amazon Fresh. Almost two dozen American cities and a few foreign places presently offer Amazon’s grocery pickup and delivery service. A grocery order may be placed through the Amazon Fresh website or the Amazon mobile app. Customers can have their goods delivered or pick them up in person.
  • Vine on To help consumers make educated purchases, manufacturers and publishers use Amazon Vine, which was introduced in 2007.
  • Woot was acquired by Amazon in 2010 and featured daily-rotating special discounts and limited-time promotions. This store sells low-stock new items as well as reconditioned goods. Shipping is free for Prime subscribers.
  • Zappos. In 2009, Amazon acquired Zappos. This online shoe and clothing store has many brands, such as Nike, Sperry, Adidas, and Uggs.
  • Amazon merchandise. Sellers may develop and upload their T-shirt designs for free and receive royalties on each sale with our on-demand T-shirt printing service. The rest is handled by Amazon, including producing the T-shirts and shipping them to buyers.
  • Handmade, With the help of this website, artists may sell their handmade goods to clients worldwide.
  • Kindle. Users may browse, purchase, and read e-books, journals, and newspapers from the Kindle Store using the Kindle’s first e-reader.
  • Tablet Amazon Fire. Amazon’s well-known and well-known Fire tablet, formerly known as the Kindle Fire, competes with Apple’s iPad.
  • Fire TV from Amazon This series of digital gadgets and streaming media players from Amazon transmits online-streamed video to a connected high-definition television.
  • Alexa. This voice-activated, cloud-based, AI-powered personal assistant may respond to questions, engage with users, and carry out other actions.
  • Echo. One of the innovative home products, it connects to Alexa and has a speaker built in. In addition to chatting about the weather, making shopping lists, and managing other intelligent devices like lights, switches, and televisions, Amazon Echo can perform several additional tasks.
  • Echo Dot from Amazon. An Echo Dot is a more compact, puck-shaped variation of the original Amazon Echo. It can be placed anywhere and can play music, read news, and respond to queries.
  • Echo Show from Amazon, a member of the Amazon Echo family of speakers, functions similarly through Alexa but adds a 7-inch touchscreen to play films and music and make video conversations with other Echo users.
  • Astro on Amazon This is the first Alexa-compatible home security robot from Amazon. It’s made to assist with domestic chores, including home surveillance, elder care via notifications and alerts, and following users from room to room to play music, TV shows, or podcasts.
History of Amazon for Kids
History of Amazon for Kids

Subscription services

  • Prime on Amazon. Members of this membership service get access to unique shopping and entertainment options, savings, and other benefits. For instance, free one- or two-day shipping is available to all Amazon Prime members on qualified items.
  • Prime Video on Amazon. This is Amazon’s on-demand video streaming service, which features over 2,100 TV episodes and around 24,000 movies. An Amazon Prime subscription comes with access to this service.
  • Kindle Drive Amazon Drive, formerly known as Amazon Cloud Drive, is a cloud storage application that gives Amazon users 5 gigabytes (GB) of free, safe online storage for pictures, videos, and data. Members of Amazon Prime receive 5 GB of video storage in addition to free, unlimited, full-resolution photo storage.
  • Twitch Prime, a monthly membership service, is a division of Amazon Prime. It grants users access to Twitch’s premium features, which include a fun and interactive way to watch others play video games.
  • Prime for Amazon Music. For Prime subscribers, Amazon’s music streaming service is free.

Reasons why it is successful

1) Influence

The innovative technology and procedures used, many of which were promoted by its CEO Jeff Bezos, are mainly responsible for the company’s success. Take Amazon’s remarkable voice command gadget, the Echo. With only a few spoken phrases, you can use Echo to play music, look up information about your favorite sports teams, and even check the weather. The e-commerce behemoth significantly invested in this ground-breaking technology, producing extraordinary outcomes. In 2017 alone, more than 22 million Echo units were sold.

Although Amazon’s innovative philosophy doesn’t always pay off, successes like the Echo show that innovation may significantly impact e-commerce businesses’ performance.

2) Client service

Because of its dedication to providing top-notch customer service, it has created several practical tools that customers can use to monitor shipments, easily exchange or return bought products, and simplify their online shopping experiences. In addition, the devotion of the Customer Service staff to avoiding and promptly resolving issues for consumers has earned them several honors. Being the most customer-focused firm globally is one of it’s main objectives, and the brand’s commitment to this objective has been fruitful.

Another effective technique that it uses to interact with customers and raise the standard of its customer care is social media. When used correctly, social media platforms assist your e-commerce company in addressing consumer complaints and establishing a solid base of devoted supporters who promote your brand. For this reason, many e-commerce businesses collaborate with Snap’s Social Media Team to enhance and expand their social presence.

3) Performance

When fulfilling client orders, Amazon does everything perfectly. They choose goods and services that consumers desire and require, and they use global distribution hubs that enable them to transport goods quickly. Also, it has strong vendor connections that provide clients with exclusive discounts. The biggest online retailer in the world is stepping up its intentions to spend more in Europe this year and hire thousands more workers. 

4) Differentiation 

Amazon began as an online bookstore but sells everything from nuts to soup today. Literally. The website’s search returns more than 3,000 items for vegetable soup. More than 37,000 items will come up when you search for “nuts.” Amazon sells goods in the following categories: music, books, electronics, health and beauty, cars, groceries, and clothes. Business owners needing IT help, furniture assembly, or even audiovisual services may hire professionals from Amazon’s network. Amazon consistently expands its services, increasing its reach and importance.

Whatever your industry, you should pursue diversification with no fear. You may attract new business opportunities to expand your company by entering new markets and product categories. Even better, wherever feasible, diversify your initiatives for digital growth. For instance, Amazon today has 3.8 million referring sites and an impressive 3.6 billion backlinks. Therefore, any effective SEO campaign relies heavily on a diverse link portfolio. Because of this, many e-commerce businesses collaborate with us to enhance their link-building tactics.

5) Exceptional user experience

More sales are generated as a result of e-commerce customers quickly identifying what they’re searching for and going through the conversion funnel thanks to a solid Interface. Because of this, Amazon has a whole Design team that includes experts in user research, interface design, and web development. These Aesthetic specialists work with Amazon’s product managers, engineers, and executives to provide intuitive user experiences that increase customer conversions.

Fortunately, with assistance from the proper digital marketing partner, any business can enhance its online user experience. To help you optimize the Usability and Interface of your website, Snap Agency’s Design Team offers complete web design and CRO (conversion rate optimization) solutions. Through user experiences that inspire and engage, our human-centred design methodology will increase the conversion effect of your online presence.

6) Merging content with design

Long-tail content plays a significant role in e-commerce SEO. To make a page more visible on search engines, you need a lot of keyword-rich material; this is why Amazon utilizes extensive product descriptions and FAQs on their product pages. However, looking at any product page on Amazon, you’ll see that the lengthy material doesn’t negatively impact the page’s flow or user experience (UX). Product content on Amazon receives less attention than crucial CTAs (such as the “Add to Cart” and “Buy Now” buttons). Amazon sites are guaranteed to draw and convert relevant online visitors thanks to the easy integration of design and content.

7) A mindset of “In it to win it.” 

Does anyone recall the days when Amazon was a loss-maker? If you’ve been around for a while, you might remember Bezos’ caution that investors should expect a long wait before seeing a return. He predicted that Amazon would remain unprofitable for a very long period in a 1997 interview with Inc. Magazine. His “in it to win it” mentality maintained the business implementing fresh tactics until 2003 when it turned a profit. Regardless of your perspective, Amazon has developed from a little online bookshop to a global powerhouse. You might even argue that Amazon founded the sector to itself.

8) There are a lot of Product lines

First, Amazon has a considerably more comprehensive range of items than practically anybody else because of the enormous number of SKUs (unique product identification numbers) they provide. Customers can buy almost everything from one store rather than having to visit many thanks to this selection, which simplifies their shopping process.

They have been able to entice clients from a wide range of areas with their extensive products and then retain them thanks to the other things they provide.

By providing such a range of items, a client is more likely to continue purchasing in the future, which helps the business in terms of customer lifetime value. In addition, this ease appeals to many customers who are only seeking the simplest way to obtain their items, and it attracts them.

9) Free Returns and Shipping

There was a time when shipping was expensive and returns cost money, even though it may be challenging to comprehend in this day and age. In this aspect, Amazon was a pioneer; by popularising free shipping and returns, they lowered the entry barrier for customers who wanted to purchase online.

Keep in mind that the internet is still a relatively new phenomenon, and many people were afraid to purchase online as recently as 2010. In addition, people were concerned about delivery and whether they would enjoy the things when they came, but Amazon addressed these concerns by generally providing free shipping and returns.

With this approach, they stood apart from the competition and increased the likelihood that customers would choose them over other online retailers.

10) Same-Day Delivery

They were also among the first online retailers to provide affordable overnight delivery. This strategy addressed the issue with online buying: the customer must wait for the item to arrive, which can be frustrating.

By providing affordable overnight shipping, they may attract clients who would otherwise shop in person because they needed to do the standard three days.

11) Skillful Management

Of course, Jeff Bezos did not accidentally end up as the CEO of Amazon; he had previously worked for an investment firm and has always had tremendous talent. Additionally, he made some excellent hires, which led to the development of a highly talented group of senior managers that guided the business from the top.

Senior management is essential to Amazon’s success since a firm can only accomplish something with it, and a group decays from the top down.

Their success has allowed them to surpass all other businesses in history, making them the most prosperous enterprise ever.

Disagreements and complaints

Over the years, Amazon has faced criticism from many quarters. As a result of the digital giant’s monopolistic practises, the retail sector has changed and been disrupted, resulting in the so-called “Amazon effect.”

  • Anticompetitive and monopolistic conduct. It is accused of replacing an open market with a privately controlled one due to its size and ability to take advantage of economies of scale by undercutting regional and small business owners on prices. As a result, the brick-and-mortar shop model developed by businesses like Sears and J.C. Penney is slowly dying.
  • The mistreatment of employees. Amazon is routinely criticized for producing dangerous working conditions, poor pay, and unfair working conditions at its facilities, including treating employees like robots.
  • An enormous carbon impact. Environmentalists have alleged that Amazon has had a shocking carbon footprint during the previous 20 years. Oil is necessary for transporting all goods, and since Amazon ships everything anywhere, it is inevitably responsible for the long-lasting carbon imprint it creates.
  • E-waste. A recent investigation by the British television network ITV revealed how Amazon is burning millions of unsold or returned items, adding to the global e-waste catastrophe. Additionally, millions of devices like phones, laptops, and TVs are harmful to the environment’s soil, water, wildlife, and air.
  • Listings for fake items. As a result of false advertising offering and selling counterfeit items on Amazon through its third-party marketplace, Amazon has come under fire from businesses, consumers, and legislators. As a result, Amazon burned 2 million fake products submitted to its warehouses and banned 10 billion fake listings in 2021 as part of a campaign to combat counterfeit items on its website.
  • Ignoring taxes. Despite earning enormous profits and moving quickly toward monopoly status, Amazon has come under fire for frequently dodging paying taxes. However, an Institute on Taxation and Economic Policy analysis found that the corporation saved the federal government $5.2 billion in corporate income taxes in 2021.

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