5 MARKETING TECHNIQUES USED BY AMAZON
It might have started by selling books but by using a number of marketing techniques Amazon is now the biggest e-commerce company in the world in terms of revenue and market share, becoming a by-word for online shopping. How did it get there? A range of clever marketing techniques brought them to the top of the industry – five of them are discussed below.
Free delivery on orders over £20 and add-on items
We’ve all been there: your order is at £18 and delivery costs £2.85. With free delivery on orders over £20. You think I might as well buy that other book I’ve had my eye on and get free shipping.
Amazon’s approach to delivery is a clever one that plays on all consumers’ natural instinct to avoid wasted spending. People come to the site intending to just buy one thing, and leave with multiple (but at least they don’t pay for the delivery!).
Add-on items are another incentive to buy more; customers have the option to buy extremely low-priced extra items to an order, but only if it’s over £20.
2. The recommendation algorithm
Marketing technique number 2 is digital marketing at the height of its powers. The recommendation algorithm enables the site to present customers with exactly what they want, even though they’re not looking for it.
Pulling search history, recently bought items and who knows what else, the algorithm is a powerful tool for Amazon. For any company, keeping track of customers’ likes and dislikes is a key way to sell them something!
3. The 1 click buy
Who can resist the 1 click buy? Using this marketing technique there’s no need to fill in endless details, choose delivery methods, check card details; you just get what you want instantly.
Decreasing the steps to purchase is one of the great marketing techniques ever used as there’s no time for people to reevaluate the purchase (for example when filling in a postcode for the 3rd time). This taps into our tendency to impulse buy and ensures people buy ever more often.
4. Drawing customers in with low pricing
Unlike a lot of stores, Amazon proactively keeps prices low. It’s a great marketing technique firstly because it demonstrates to the customers that their needs are the priority.
Secondly, their focus is then on getting more users on their platform, rather than huge profit margins. This is what makes Amazon successful. More users mean more overall sales and the opportunity to diversity customers’ interests.
5. Loyalty Programme
Amazon’s loyalty programme, Amazon Prime, has had mammoth success, growing by 50% in 2015 alone. Although customers have to pay, it’s small fry compared to the many benefits Prime members get, including free delivery, fast shipping, free streaming and cloud storage.
This is an ongoing programme, as well. It’s not about earning points each time you shop, then getting money off future purchases; it’s a continual flow of rewards which only encourages customers to keep buying from Amazon. The advantages are instant. If you need something quickly, you know you’ll get it the next day. When you get free delivery, why buy anywhere else?
It’s an amazingly smart marketing method: customers who shop on Amazon get Prime because it makes sense, and are then motivated to shop on Amazon more.
Overall there are a number of marketing techniques that Amazon use that I have not mentioned that have contributed to it’s success. But by incorporating the 5 I have mentioned where applicable, you too can help grow your business.