Amazon started out selling books online. That was groundbreaking for the time, and very few companies provided the level of convenience that Amazon had to offer.
After following the initial business plan, the company expanded into selling computer games and music in 1998. At about the same time, Amazon also expanded its services internationally by purchasing other online bookstores in the UK and Germany.
By the turn of the Millenium, Amazon had further expanded into selling consumer electronics, video games, software, home improvement items, toys, games, and much more.
The main appeal of Amazon in its early days was one of pure convenience. A potential customer no longer needed to visit a physical bookstore to get the book they were looking for.
The ability to search, select and purchase a book from the comfort of your own home was an amazing innovation at the time. Not only that, but Amazon would deliver your purchase to your front door within days.
Since then, Amazon has continued to expand into many other services. These include fresh shipping produce, drone delivery, and many more innovations.
By joining the program, other companies advertised Amazon’s merchandise for sale on their platforms. Amazon would then fulfill the order and pay a commission.
The very fact that they began to offer more and more different products only broadened its appeal to more and more customers. But it was not really about the goods they were selling.
Amazon’s success owed, like many other successful companies, to the service that they offered. That gained them significant customer loyalty, and as a result, big profits in the long run.
Another innovation Amazon made for its customers was its recommended product function. By offering other products to upsell, based on the customer’s previous purchases, Amazon could increase its revenue even more.
The addition of customer reviews of products also helped foster a kind of customer community that made the site and its wares more appealing to potential new customers.
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