Brand named Amazon is one of the largest platforms for digital business in the e-commerce market. Amazon has an excellent reputation for implementing creative ideas. Similarly started its business as an online shopping site. One must always be wondering; How Amazon manages to do everything effectively? What is Amazon Marketing Strategy? The current venture of Amazon has seeped in almost every domain of the digital business. It is still the fastest ongoing and growing marketplace. Amazon operates in the e-commerce industry providing varieties of the categories and expanding their business.

Nowadays, we see that every kind of product is available on Amazon. This makes Amazon the first choice to search for any item to buy. The large stock and availability of different types of products is the biggest strength of Amazon. Amazon has formalized its delivery policy in such a way that it provides the best services in the market. In other words, The fast and timely delivery has empowered people to buy anything from the comfort of their home without visiting any marketplace.

In addition, Amazon has extended into the streaming business by the name of ‘Amazon Prime’ and digital payment services by the name of ‘Amazon Pay.’ Both services are integrated into the main amazon platform making it center for multiple kinds of activities. The extensive use of Artificial Intelligence has empowered the platform at multiple levels. It has a very strong background and runs by a major theme quoted as, “Go Global, Do Local.” This has led them to achieve success in all types of demography. 

The structure of the organization is very subtle and quite systematic. Amazon is considered to have one of the flexible work structures that modify according to the changes and challenges coming into the market.

The marketing strategies opted and utilized by Amazon

  • The effective and extensive use of SEO which goes by the name Optimized Amazon SEO. The details and information are taken in the form of keywords, titles, descriptions, images, Q&A, etc. 
  • Amazon’s affiliate marketing is one of the most innovative and outstanding marketing strategies. It facilitates any individual or organization to promote the product on their website. This helps them in earning some commission over the sale of products when clicked through their website or page.
  • Amazon advertising uses one of the fundamental ways of placing some random product in front of users. Though they place ads in three categories that are sponsored product ads, sponsored brand ads, and display ads.
  • Third-party advertising is one of the effective marketing strategies. This refers that promotion is not limited to the platform. Anyone can use a third – party advertising entity to generate consumer traffic on the amazon. This will increase the clickthrough and rates of conversion. Examples of third-party advertisers are Google Ads, Facebook Ads, etc.
  • They provide a very large range of products. Their products range from very small and non – significant things to giant things. The portion of Amazon products that belongs to third – party sellers is 58%.
  • Amazon uses quite sophisticated artificial intelligence tools for data analytics. These analytics take in data collected from customers in different categories. After analysis, it automatically generates recommendations and promotional activities which they could follow to get more sales from the customers.
  • E-commerce and cloud storage companies have found various competence. This can help them to raise the scale from small to large. 

Some More Amazon Marketing Strategies

Above all, Amazon is a customer-centric online marketplace. The company’s structure and strategies have excellent efficiency in terms of delivering success to their venture. Amazon’s most stronghold point is it’s highly based on customer service. It means it intends to provide a lot of facilities and services to the customers. Amazon has made some geographical demarcations based on the traits or types of people and their preferences from a particular area. The company focuses on the simple concept that no time of the consumer should be wasted and they should get what they want as soon as it is possible.

Amazon provides an excellent and understandable customer experience with ease of navigation and usability. The Jeff Bezos (CEO of Amazon) quoted that, “The most important single thing is to focus obsessively on the customer. Our goal is to be Earth’s most customer-centric company. The company itself follows the below tactics to reach out to more consumers by reaching out to them or providing them with better functionality. These facilities are –

Email Marketing Strategy

  • The image shows Personalized Email Marketing
  • Image shows Mass Emailing
  • Image focuses on welcome email
  • Image shows email receipt
  • Image shows amazon shipping confirmation
  • Image shows thank you email
  • Images shows Amazon product list
  • Email show review email
  • Image shows Amazon Black Friday Sale
  • Image shows Amazon Upsell email
  • Amazon Invitation email is shown in this picture

The company has the highest reach and does most of its promotion through email. They have developed a very sophisticated and refined email strategy. The company states that there nine categories of emails (transactional and marketing) that allow users to access different types of facilities. These mails help in recording customer preferences. By this, the company makes better sales leads to consumers. Amazon has an excellent and quite innovative recommendation emails that are highly personalized. These mails are based upon the records of the history of purchase, searches, location, save, age, gender, etc.

Reviews and Ratings

Ratings and Reviews (Source: WORDSTREAM)

Every shopping site has this facility for its products. Amazon has a huge set of reviews and ratings which helps them to display the preferences of the consumers better. They ask for product reviews and ratings after every purchase made. They even send mails for it.

The loyalty of Customer

Amazon Prime (Source: Medium)

Amazon has a special branch for its special customer and that is Amazon Prime. It has quite a large membership which is very beneficial for the company. The company in return also provides a similar level of service to them. The increase in revenue due to customer loyalty solutions is around 5% to 10%. Though paying extra as membership is a little psychological setback. But, the customers with better understanding know that are paying this for better facilities.

Video marketing strategy of Amazon

Amazon has grown quite high in the streaming business. They are making global hit shows and movies. Amazon prime has gained excellent popularity and has enhanced the revenue-generating source for the company. 

Image shows Amazon Prime Video
Amazon Prime Video (Source: PCMag)

It is attempting to inculcate the in – house brands and products that are handcrafted or self – made. It will enhance the creative end of the availabilities of options for the consumer. In this way, Amazon can provide business opportunities for a large number of small businesses. The target market of Amazon is every individual who wishes to purchase anything. Amazon has its own well – versed documented form of marketing strategy. They have summarised their whole marketing plan into 4 main categories. 

Amazon 7 P’s of Marketing

This contains 3 broad categories of the marketing mix, in which the first category contains 4 subcategories of products. The three broad categories are – Product Element in Amazon Marketing Mix; Place Element in Amazon Marketing Mix; Price Element in Amazon Marketing Mix.

  • In this first category has four products that fulfill the purpose of marketing. They are – Amazon websites, electronic devices (such as Kindle, Fire TV, Echo, Alexa, etc.), media content (cloud-based services), AWS – Amazon Web Services (it provides storage, global computation, servers, database, etc.).
  • The second broad category signifies the digital coverage of Amazon. They don’t have any fixed place of shopping or related services. Everything that Amazon provides is available online.
  • The third broad category is about pricing. The company generates an excellent revenue every year ranging above 30% annually. They define their pricing strategy as cost leadership. They follow this strategy and lowers the prices of the product until they beat all their competitors.

Amazon Segmenting, Targeting, and Positioning

STP Process (Source: SLIDESHARE)

Amazon has the widest range of customer segments to target. They target and segment the customer to define some common grounds on which attributes could be generalized. Segmentation begins with the population within categorized characteristics meanwhile considering the product preferences. The positioning is most suitable for targeting the customer segment because of its ability to select a marketing mix. Two types of positioning are Multi-segment positioning and Adaptive positioning. The multi-segment positioning is concerned with providing a wide range of products and services. The adaptive positioning refers to the monitoring of changes in the market and variations in customer’s expectations. The segmentation is done in the numerous subcategories that are geographic, demographic, behavioral, and psychographic.

Amazon’s unique selling proposition

However, Amazon is a wholly customer-centric digital marketplace. It has two main strategies that are customer centricity & cost leadership. Following these business strategies, Amazon has devised four cornerstones. The first is consistently seeking to enter a new product segment and increase the range of products. The second is taking all the measures to strengthen the ecosystem of Amazon. The third is providing the best customer service with a focus on long – term revenue and short – term revenue. The fourth is to follow the objective principles of Amazon and keep the leadership values intact.(Source: MBA Skool)

How Amazon Delivers On One-Day Shipping?

Source: Youtube

Amazon Marketing Communication Mix

Amazon Marketing Strategy Overview (Source: SELLICS)

The company has a wide range of promotional media sources. They use media extensively in all the forms to deliver their marketing message so that it could be heard by the masses. Amazon also promotes itself by conducting sales promotions. These sales can be occasionally, monthly, or sometimes during the launch of any product. Amazon also offers loyalty cards and gifts. This is one type of Amazon marketing strategies.

This blog contained quite exclusive and highly specific marketing strategies of one the tech giant company on the planet that is Amazon. Therefore, We went through all the possible dimensions of marketing of their company citing the views of customers to using company documents for technical enhancement. Next time, when you visit Amazon to buy anything, you will surely feel the difference after having this knowledge of ” Amazon marketing strategies”.

Image shows Amazon Advertising
Amazon Advertising (Source: OPENBRIDGE)

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