How Amazon is Mastering the Retail Industry
It should be no news to any that Amazon is expected to report significant growth on their Q4 report. According to FactSet, Amazon.com Accounts for Over 50% of Expected Earnings Growth for S&P 500 Retailers in Q4:
Amazon.com is expected to report the highest earnings growth and is expected to be the largest contributor to earnings growth for the Retailing Industry Group and Food & Staples Retailing Industry Group combined. If Amazon.com were excluded, the estimated earnings growth for Q4 for these two retail industry groups would fall to 6.8% from 15.0. Thus, Amazon.com alone accounts for more than half of the projected earnings growth for all S&P 500
retailers for the fourth quarter.
Amazon has a unique business model that stands out from the rest and it's seemingly winning the game against the competition. How do they do it? Let's dive into how Amazon is mastering retail.
Mastering the Retail Industry
In a previous post, we mentioned that Amazon was doing things differently to impact Customer Experience and some of those things included:
- Personalization and knowing each customer is different and so are their needs
- Constant innovation
- Fast and reliable delivery
- Trustable return and refunds policy
Amazon Prime is Unique
Amazon Prime is one of the biggest examples of innovation in the retail industry. Not only are they offering an all-in-one fast delivery service that in bigger cities even includes delivery in a couple of hours, and they're also providing streaming services and giving access to other content such as ebooks and music.
Amazon Makes Customers Happy
Amazon ranked as the top brand in the US by YouGov BrandIndex surpassing Netflix and Apple and 95% of Prime members say they would “definitely” or “probably” renew their memberships. This achievement comes from a mix of things but mainly from the many benefits and for Amazon actually delivering on their promises.
Amazon's success can't be attributed to only one thing but rather a combination of innovation, trust, and benefits. To finish, here's an infographic by WCMarketplace, that depicts the many characteristics that have made Amazon what it is.