For any online retailer, improving the website’s appeal, usability, and ability to convert visitors into buyers is always of critical importance. After all, each of these is a critical element in how a retail website becomes successful.
Approaching the upcoming holiday season (a large percentage of many online retailer’s annual sales), it’s important for a small online retailer to start thinking about improvements to its website in order to maximize holiday season sales. Rather than working in a vacuum, though, small retailers can learn a lot by analyzing other online retailers with rapidly growing sales.
But where to start?
Well, a fantastic place to start that learning is Amazon.com, with more than double the 2007 web sales of its nearest competitor. In the first half of 2008, it’s web sales grew by 33% while online retail overall grew by only 12%. Where better to learn than from the number one online retailer??
To learn about Amazon’s retail strengths, a good place to start is a new article by Internet Retailer titled "Advantage: Amazon," in the September 2008 issue of the magazine.
According to the article, one of Amazon’s strengths is its diversity of product offerings with more than 10 million SKUs. In order to sell more and more categories and products, Amazon actively invites other retailers to sell their products through the Amazon.com platform. An interesting twist on this is that only Amazon maintains the right to send such customers follow-up marketing emails. The merchant gains access to Amazon’s massive audience. Amazon builds its own revenue through commissions (typically 12% – 15%) and builds its own customer database and email marketing reach. It’s a win-win.
Other areas of strength include Amazon’s low prices, free shipping policies, international reach, 12 distribution centers, merchant fulfillment programs, and technology innovations (the Kindle digital book reader could generate $400 million to $750 million in sales by 2010, according to the article).
What the article does not cover, yet what Website Marketing NOW believes to be an additional core strength that drives customer loyalty and repeat purchases is Amazon’s depth of customer engagement.
Look at all the ways that customers interact with the Amazon.com website. There are of course user-generated product reviews, product ratings, reviewer ratings and product lists. There are also product video reviews. A site visitor can create or join groups, create a media center, tag products or join online discussions.
On top of all of this engagement, personalized recommendations and insights provided by Amazon about similar products or other products that site visitors have bought creates relevant and effective conversion funnels that lead to larger sales.
There is certainly a lot to learn about online retailing from Amazon. It would behoove any small online retailer to spend a few hours studying the site to glean ideas for its own website in order to fuel sales this upcoming holiday season.
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