If you run an e-commerce website, or you just want to boost your companies profits: Be More Like Amazon.
You may not know this but in 2008, within the middle of the global economic downturn, Amazon turned over $19,166,000,000 (that’s $19 billion and some change if all of the zero’s are becoming a blur). What’s more, in 2008 their turnover increased 29% from 2007…… are the executives at Amazon asking themselves “what recession?”
I recently discovered a fantastic presentation on Amazon. In his 53 minute presentation Jarad Spool reveals the design secrets of Amazon. If you operate an online business, this is definitely for you. Further, if you are interested in learning how a very successful company makes it’s money, you will get a lot out of this presentation.
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{ 5 comments… read them below or add one }
Amazon has certainly figured out how to grow profits during the overall economic downturn. It is my belief that this has largely depended on Amazon sticking to their core competencies, as well as constantly adjusting for conversions and relevancy.
The question now is how will new web businesses build upon the infrastructure and success of platforms such as Amazon? Value added services that drive at niche motivators (such as altruistic) are a very likely candidate (i.e. http://mybiggive.com ) as well as the traditional driver of content to sales (tv guru site monetizing off product sales).
With the growth of third party resources, the possibilities for future web businesses are almost limitless. However, that also goes for your competition.
Your website mybiggive.com is a great case in point. It's a fantastic site, but in this world of seemingly endless online businesses how does one stand out above the rest?
It is true that platform features in which enable sites like mine to sprout up could also be used for an infinite number of competitors. However, a first mover advantage combined with a community/audience that trusts your operation and brand could be the deciding factor of your success over others.
A good example would be all the Twitter, Digg & Facebook clones that have sprouted across the web most of which have fallen flat on their face. Being their first, doing it the right way and building a relationship with your customers allows you to carve out a niche for your unique value proposition.
Travis, you are spot on. Building a strong brand and a dedicated customer base from the get go is the only way to survive in this overpopulated market.
Building a business by pulling together third party resources stamps out almost all possibilities of a patent. The single most important way of protecting your company in this day and age is to build a strong brand that provides satisfaction to customers.
I guess the only question that remains at this day in age, is how you build a brand that can break through the clutter and the crap that people are hit with each and every day, especially on the internet.
Your sphere of influence in the real world can only be so large, although it seems that the power of personal recommendation face to face mimics the initial success of a web service.