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Our comprehensive report on the Holiday Shopping Season of 2017 had some fascinating insights. Experts have noted that perhaps most surprising was Amazon’s bigger-than-expected gains, and their dominance over the e-commerce ecosystem. Here, we’ll unpack this to get a deeper understanding of what they are doing right, and how you can benefit.
Get the report here:
For most people, online shopping is synonymous with Amazon.com. In our report on the Amazon universe – for many, both a microcosm of, and indicator for the e-commerce world in general – Amazon as a brand netted sales of $720m over the holiday season. That was more than double their closest rival Samsung, who came in with $320m, and more than the next 3 companies combined (Samsung, Sony and Apple). As CB Insights puts it, “As the biggest online retailer in America, the company accounts for 5% of all retail spending in America” (emphasis added).
Jeff Bezos’ company also bossed Black Friday, posting sales that were a whopping eighteen times a regular Friday, ending the day at $60m. As if this wasn’t enough, they came back on Cyber Monday and stole the show again.
Playing To Win
There are a number of strategies that Amazon has used, and continues to use, that have ensured that they enjoy the market position they hold today.
First, they are making use of the massive amount of data that exists in the world of e-commerce. Amazon is constantly analyzing, experimenting and making changes based on this data.
Amazon are also ensuring that they are constantly expanding the data that they have access to; this means going cross-platform, outside of the Amazon ecosystem, and has included integration with cars, computers…and even toilets. RetailDive reports that Amazon are “integrating Alexa into every product that might come to mind — glasses, cars, mirrors, microwave ovens, mobile accessories, computers and many others. Soon it will be a whole lot harder to think of a type of product that hasn’t in some way merged with Alexa.”
Their strategy of “backing a winner” has paid off, big time. Take, for example, the humble Instant Pot. This product smashed all records, with 10x growth and millions in sales. There are many factors in this product’s success, but chief amongst those is the way that Amazon has leveraged this winner, and built momentum off of its popularity.
Finally, Amazon have enjoyed continued success because they are constantly looking ahead. They have become legendary for some of the patents they have filed, and this trend continues, with patents being issued for an augmented reality mirror, technology that can pixelate the Echo’s video, and technology that can pick up if self driving cars have been hacked.
Taking A Leaf Out Of Their Playbook
Looking at the success story that is Amazon, it’s clear that adopting these strategies can mean success for your business too.
By using the data available to you, making quick decisions, being agile and aware of competitor moves, and constantly testing and experimenting.
You can expand your data access through new promotions and marketing initiatives, getting a data partner onboard, or subscribing to a service that provides large amounts of data.
Like Amazon, backing your winners is key. You have to know that you are selling your winning lines at the right price, and with an offering that is more attractive than your competitor’s, including product reviews, shipping, and the like.
Finally, you have to be constantly looking ahead, keeping abreast of new technologies, industry trends, and hot new products and categories.
Of course, there are hurdles. This may sound good in theory, but many people do not believe that they have the resources to keep up with the quantity of products, pace of change, breadth of data, or complexity of operations that the Amazons of the world manage to succeed with.
There Is A Way To Thrive
It may seem daunting, but there is great news. There is a way to survive – and thrive – in this new e-commerce world. With a partner like Market Beyond, you have access to huge amounts of data that gives specific and actionable insights to put you ahead. You can manage thousands of SKU’s with product-level insights, and ensure that you’re staying ahead on all your key metrics. For more about Holiday Season 2017 check out our Report, or contact us to discover how Market Beyond can take you to the top.