Milestone after milestone, Amazon has grown from an online bookstore in Jeff Bezos’ garage to the world’s largest Internet company by revenue. It is also considered to be one of the most influential economic forces worldwide. What pre-determined its success and what steps should be taken to reach similar heights?
The reason for Amazon’s success
Strategy
Amazon has adhered to the principles that have been part of its strategy from the beginning. Including:
- First customer; they put the customer experience at the center of everything they do while the focus on the competition is secondary;
- Invest in technology and increase innovation;
- Commitment to operational excellence means always looking for areas of improvement;
- The ability to think ahead.
User-friendly design
While the interface may look outdated compared to modern web design trends, we should honor its user experience design. User-friendly and intuitive, it aims to simplify the search and purchase process.
Because of customer trust and convenience, Amazon focuses on providing complete and accurate product information. Details include informative descriptions, high-quality product photos (which also allow viewing the product from different angles) and reviews.
Convenient payment
Amazon pursues the goal of meeting the needs of all its customers. For that reason, it not only offers its audience all kinds of products, but also ensures customers can purchase them using any of the convenient options. Amazon customers use a variety of payment methods, including credit and debit cards such as Visa, MasterCard, American Express, etc. Additionally, they can order gift cards to use with their purchases.
Express delivery
Speed is essential to the success of an e-commerce platform, and Amazon has done it. Technology plus human ingenuity helps process orders as soon as they are placed. Thanks to global logistics and supply chain algorithms, Amazon employees ship packages extremely quickly. Moreover, Amazon owns many delivery vehicles and planes. Therefore, it allows same-day and next-day delivery, which are indisputable advantages of e-commerce business.
How to Create a Platform Like Amazon: Key Steps
If you have ambitions to repeat and go beyond Amazon’s success, you should start with a stellar business strategy. First, you have to build a minimal viable product. MVPs are built to launch the platform quickly with little to no budget, then enhance the platform bit by bit to roll out new features and capabilities to its business and customers. Keep reading to learn what basic steps you must take to succeed.
Discovery stage
The Discovery phase is the bridge between the theoretical concept of the product and the technical realization of the product. This phase is supposed to help evaluate the product and identify the needs of customers, end users, and stakeholders. The many goals of discovery include:
- Market research
- Research target audience
- Define a unique value proposition
- Build product roadmap
Other important topics will include defining requirements, establishing essential features, and estimating the overall project scope, resources, and budget.
At the end of the discovery phase, you’ll be able to answer how to build an ecommerce platform and identify the means to success.
Decide on the technology stack
Choosing the right technology stack ensures the right performance for your product. Once all the core features have been identified, the next step you must take is to select the technology stack to implement the required features. The technology stack mainly depends on requirements and budget.
Creative design ideas
Good design creates a positive experience for your users and, as a result, helps satisfy their needs.
Creating a UI/UX concept means defining how a future product will work and look with the convenience of the customer. Remember that design ideas do not represent the final result of the look and feel of the product. The design concept pursues the goal of making it clear whether the chosen direction is right for all stakeholders – customers, teams, and users.
Development of MVP
Launching a minimum viable product means introducing to the world a product that supports the minimum features but must have corresponding to its unique value proposition. After the product is launched, continue to maintain it to ensure that everything is working as planned and continue with the continuous development and improvement of the product. There’s no limit to perfection, right?
Challenges of an e-commerce platform like Amazon
Following the success of a world-leading company like Amazon is not an easy task. Difficulties can arise even in the recruitment stage. For example, there are step-by-step tips for hiring a software engineer. It is clear that hiring any professional requires a certain approach if you want to have quality staff.
We recommend that you think about the possible risks ahead and be ready to face a multitude of challenges.
Highly competitive market
Amazon is a global marketplace that sells all kinds of products to people all over the world. In addition to Amazon, there are giants like eBay, Walmart or Alibaba that have a large and loyal readership. Entering this market means competing with global corporations.
Logistics system
Logistics and supply chain are at the core of Amazon’s success. When deciding to build an e-commerce platform, first of all, you should think about the logistics system and determine exactly how the goods will be delivered to avoid possible delays.
valuation
Discounting and motivating customers to shop during the sale is part of the market’s strategy to attract audiences. However, then comes the dilemma of how to stay profitable when bidding low. The answer to this question would be a dynamic pricing algorithm aimed at creating an ideal price. The algorithm considers competitor pricing, supply, seasonality, and demand. As a result, both the market and the customer will benefit from lower prices even though the goods are not always cheaper than in a competitor’s market.
end
Hopefully now you have an understanding of how to start building an e-commerce platform like Amazon. For more details, continue with the blog post on the topic How much does it cost to build an Amazon-like platform.
Also read: Key reasons why you should invest in e-commerce
Categories: How to
Source: vothisaucamau.edu.vn
