Amazon is one of the most successful ecommerce empires on the Internet, but many people wonder how the company got its start. Amazon’s Jeff Bezos founded Amazon on the principles of good customer service. The company has almost anything a person could imagine for sale online. The concept is absolutely ideal and convenient for online shoppers. Here are some of the principles Amazon is based upon and how the company generated over $8 billion in revenue using these simple principles:
1. The Customer Comes First
This garage-based company transformed into a leading ecommerce company by putting the customer first. The company started its business by selling books online in 1994 when the Internet was growing 2,300 percent per year. Now, by focusing on the customer, low prices, vast selection, convenience and fast delivery, the company has grown into a multi-billion dollar company.
The company not only delivers customer-centric service to people who want books but also to people who want to purchase computing services and consumer-electronics such as Kindle. Without their customer-centric approach, Amazon would not have grown to a billion dollar company.
2. Be a Risk Taker
Jeff Bezos did not achieve this level of success without taking risks. He took a risk when most people said he would fail. During the first five years, he called the company Amazon.toast because he had not achieved the level of success that he desired.
3. Break Some Business Rules
Many experts will offer advice on how to shape your business. Some advice will be based on the best business strategies and case studies in the industry, but sometimes the rules must be broken. If Jeff Bezos had not ignored some of the advice from experts, Amazon might not exist.
Many experts told him the venture was not worthwhile, and others told him that he should not sell more than 300,000 titles. Jeff Bezos’ Amazon now sells electronic and physical books, consumer electronics and countless other household goods that people may need. The company is a huge success.
Companies must work backward from their customers’ desires. Amazon constantly takes inventory of their employees’ competencies and skills to determine how to use their intellectual capital to create new profit streams. This requires knowing employees and customers.
Amazon created Kindle by studying their customers’ needs and desires. The company also knew their employees’ abilities. The two were merged to create the Kindle, which has been a huge success. The company did have to hire a hardware-engineering team, but aside from that, Amazon stuck to its core competencies.
4. Set the Bar High for Hiring
Hiring the best employees is the key to success of the company. Without conscientious employees, Amazon could not deliver exceptional customer service.
5. Think Long-Term
Do not pursue only money that can be made quickly in the short-term. Think long term. Lowering prices may hurt you in the short-term, but long-term, it may help your business. Sales may increase, and your business will be more profitable. Low prices increase long-term customer satisfaction.
6. Learn From Amazon’s Successes
Entrepreneurs can learn from Amazon’s successes. The company’s business model has proven its ability to produce revenue.
Written by Wayne Boyd
Wayne is a casual writer specialising in business advice. Wayne has worked for several top-tier Sydney accounting firms and has earned himself lots of respect among his fellow accountants in Sydney providing smart business advice to startup businesses.