The  Amazon  Effect    

Brent  Leary  CRM  Essen3als  @BrentLeary  

The  Amazon  Effect  

People  don’t  buy  from  companies  

People  buy  from  other  people  

The  Amazon  Effect  

People  buy  from  good  experiences  

“Amazon,  who  invented  the  one-­‐click  purchase,  perfected  online  shopping  with  data,  efficiency,  and  customer  service,”  

Flurry.com,  2012  

Amazon  Effect  –  Clearing  the  DECS  

The  Amazon  Effect  

2011  Foresee  E-­‐tail  Sa1sfac1on  Index    

The  Amazon  Effect  

•  one-­‐point  change  in  website  saCsfacCon  can  predict  a  14%  change  in  revenues  generated  on  the  web.    

•  when  highly  saCsfied  with  a  purchase¸  64%  of  responders  more  likely  to  buy  from  the  same  company    

•  67%  were  more  inclined  to  recommend  the  company  to  others;  and    

•  65%  felt  a  sense  of  ‘brand  commitment’.  

2011  Foresee  E-­‐tail  Sa1sfac1on  Index    

The  Amazon  Effect  

InternetRetailer.com,  July  2012  

Amazon  has  more  than  180  million  acMve  customer  accounts  and  2  million  merchants  selling  on  its  web  marketplaces  

Orders  in  1997  

Orders  in  1997  

Orders  in  2012  

Orders  in  2012  –  Cont’d  

The  Amazon  Effect  

19%  of  ALL  US  eCommerce  is  purchased  from  Amazon.com  

searchenginewatch.com,  August  2012  

The  Amazon  Effect  

86%  of  Americans  who  have  bought  something  online  said  they’ve  purchased  from  Amazon  before  

searchenginewatch.com,  August  2012  

The  Amazon  Effect  

The  Amazon  Effect  

searchenginewatch.com,  August  2012  

30%  of  all  online  shoppers  start  at  Amazon  to  research  products  

Generic  Homepage  

Generic  Homepage    -­‐  Cont’d  

My  Homepage  

My  Homepage    -­‐  Cont’d  

My  Homepage    -­‐  Cont’d  

My  Homepage    -­‐  Cont’d  

PEER RECOMMENDATIONS ARE

THE MOST TRUSTED SOURCE FOR PRODUCT

INFORMATION

“ “

We  see  our  customers  as  invited  guests  to  a  party,  and  we  are  the  hosts.    

It's  our  job  every  day  to  make  every  important  aspect  of  the  customer  experience  a  liPle  bit  bePer.    

Amazon  Effect  

What's  dangerous  is  not  to  evolve.    

Amazon  Effect  

Amazon  ConversaMons  

Instant  Chat  on  Product  Pages  

Prime  Time  •  Increase  their  purchases  on  Amazon  from  $400  a  year  to  $900  a  year  aQer  they  join*  

•  Spend  130%  more  than  regular  Amazon  customers*  

•  May  be  responsible  for  as  much  as  20%  of  Amazon’s  overall  sales  in  the  U.S  (BusinessWeek)  

*  Prac3calEcommerce.com  

• 82%  of  Prime  members  buy  on  Amazon  even  if  the  item  is  less  expensive  somewhere  else*  

• 92%  of  Prime  members  plan  to  renew  their  membership*    

Prime  Time    -­‐  Cont’d  

*  Prac3calEcommerce.com  

• Prime  members’  spending  at  Amazon  already  accounts  for  a  40%  of  the  company’s  domesMc  revenues  

Prime  Time    -­‐  Cont’d  

*  InternetRetailer.com,  July  2012  

What  we  want  to  be  is  something  completely  new.  There  is  no  physical  analog  for  what  Amazon.com  is  becoming.  

ConsumerizaMon  of  Publishing  

ConsumerizaMon  of  Publishing  

Jeff  Bezos  

Android  Marketplaces  

There  are  2ways  to  extend  a  business  1.  Take  inventory  of  what  

you're  good  at  and  extend  out  from  your  skills.  

2.  Determine  what  your  customers  need  and  work  backward,  even  if  it  requires  learning  new  skills.    

Example  of  working  backwards  

Marketplaces  

On  Enemy  Territory  

Jeff  Bezos  

The  Amazon  Effect  

InternetRetailer.com,  July  2012  

Services  sales,  including  Amazon  Web  Services,  a  provider  of  data  storage  and  compuMng  capacity  to  companies  of  all  kinds,  rose  57%  to  $2.043  billion  from  $1.302  billion.  

AWS  

Jeff  Bezos  

Jeff  Bezos  

Kickstarter.com  

Jeff  Bezos  

Kickstarter.com  

FBA  

Amazon  Selling  Coach  

Sellers  have  asked  us  to  tell  them  about  products  suitable  for  FBA.  Below,  we’ve  idenCfied  several  products  for  you  that  have  high  customer  demand  and  are  not  currently  being  fulfilled  by  Amazon  (but  may  be  in  the  future).  FBA  can  make  the  products  that  you  sell  on  Amazon.com  eligible  for  FREE  Super  Saver  Shipping,  Amazon  Prime,  and  Guaranteed  Accelerated  Delivery,  benefits  that  customers  love  and  that  can  help  drive  sales.  In  a  recent  survey  of  FBA  sellers,  89%  of  Pro  Merchants  reported  that  their  unit  sales  increased  on  Amazon.com  aQer  using  FBA,  and  64%  reported  an  increase  of  20%  or  more.  

“At  Amazon,  we  like  to  pioneer,  we  like  to  invent,  and  we're  not  willing  to  do  things  the  normal  way  if  we  can  figure  out  a  becer  way.”  

Amazon  Effect  

Jeff  Bezos  

Thank  You!  

@BrentLeary  BrentLeary.com