Amazon has been and continues to be an amazingly successful and popular company. As just one of many examples of Amazon’s success, its stock rose 17% from Jan 1 to September 30 of 2010 and 275% over the 10 years leading up to September 30 (NASDAQ went down 37% during that same period). What has led Amazon to be such the retailing powerhouse?
Years ago, people pointed to Amazon’s success as an example of “pioneering advantage,” a company that benefited from being first-to-market as an online bookseller. Its having been an early Internet retailer (along with its unusual name) will have led to better brand recall, making Amazon a more likely starting point for consumers as they search for products online. And yet, brand recall can’t explain why people like Amazon so much. Brand recall is simply an argument that Amazon is more convenient, not that people truly prefer Amazon to the point of blogging about its virtues.
Rather, Amazon is liked so much because it is built to love, so no wonder it is so successful. Despite the fact that it sells one of the largest product assortments anywhere, Amazon’s products are accessible to the user, for Amazon has found ways to feel like a small store where items can be easily found, and even found while people are sitting in their living room. People can be confident that, if they order from Amazon, their order will arrive on time or even early. And they can trust that Amazon’s products will be packaged so well that damage is a non-issue. They also know that Amazon’s prices, shipping included, are reliably reasonable and are typically the lowest available. So, a company customers can trust, find what they want where ever they are, and at the lowest price? No wonder Amazon is appreciated so much.