Amazon Ecommerce Strategy 101: Closer to Customers with Personalization

July 30, 2021
Written by Ken Zhou
amazon ecommerce strategy

You're probably wondering how huge marketplaces like Amazon have come so far to the point that they are now an e-commerce standard. Initially, you might think an extraordinary marketing strategy was implemented, causing the unrivaled rise in sales and brand reputation. 

However, the secret to Amazon's booming e-commerce plate is not necessarily an out-of-the-box idea, but a basic and massively important part of the market: the customers. Amazon is committed to applying customer-based e-commerce strategies, ensuring they've been of great help to everyone who receives their services. This article discusses an effective Amazon e-commerce strategy that helps you get closer to your target audience: personalization.

What is Personalization in E-Commerce?

E-commerce personalization is optimizing the online shopping experience through content delivery based on customer data. Using information collected from customers' browsing behavior, shopping history, and demographics, an eCommerce business can deliver content that people want to see. Additionally, personalization aims to increase engagement, consistent purchases, conversion rates, and sales. 

Businesses are problem solvers and information banks; they offer products and services that make a customer's life easier, more efficient, and fun. When it comes to online shopping, e-commerce businesses make complex shopping effortless and relevant through personalization strategies. 

E-commerce Implementation Strategy Case in Amazon: Essence of Personalized Shopping Experience

Personalization is one of the reasons behind Amazon's success. Customers expect e-commerce businesses to provide a personalized shopping experience. As a customer-centric market, Amazon came up with various ways to implement that kind of platform. Here are some examples of Amazon's noteworthy strategies:

  • Streamlined product search - Amazon displays brands, ratings, reviews, and price ranges relevant to customer intent.
  • Automated services - Amazon incorporates auto-correct and auto-fill functions to understand customer intent.
  • Customer surveys - Amazon collects feedback to measure customer satisfaction and seek areas of improvement for their services.
  • Detailed product recommendations - Amazon displays product and category recommendations based on analysis of customer's behavioral data.
  • Amazon Web Services - Amazon helps sellers find and get to know their target markets better with incredible audience segmentation.
  • Amazon Fresh - Amazon builds a chain of automated stores in various locations where customers can take what they need and simply scan a code from the app for checkout. 

These services show how an Amazon e-commerce business strategy aims to provide an effortless customer experience. By doing so, customers are most likely to have repeat purchases, which increases sales and conversions of the marketplace in return.

How to Use Personalization for Your E-Commerce Business

Now that you know how Amazon uses personalization, it's time to learn and apply them to your business and have an Amazon account management. Personalization comes in various forms—it can be product recommendations, similar products or categories, or brief customer surveys. Below are ways to personalize buying experience effectively.

Landing Pages as Virtual Showrooms

Imagine virtually accompanying a shopper in your eCommerce store. If there's an upcoming event or holiday in a few days, you can sell relevant products. One of the ways you can connect with customers as if you are guiding them in finding what they need is to create a landing page. 

This page can either be a blog post or a new product category page that talks about the event and introduces your product's relevance. Consider your web pages as virtual storerooms: product categories and descriptions help customers understand what your brand is all about and help them make a purchase decision.

Email Marketing

Personalizing your emails generates more interest (and clicks!) from your target audience. An email with a plain and cold tone is the last thing a customer wants to see; to kickstart your Amazon business strategy, take a creative and customer behavior-based approach.

For example, address the subscriber by his/her name in the subject line or tailor the content based on location, gender, and other specific data you could gather. Another example is providing creative and interactive email designs to increase engagement. Again, the key is in the customer behavior: find out what triggers them to act and focus on improving those areas for your personalization strategy.

Feedback Surveys

In the modern era, customers prefer personalized surveys because they ask quick, specific, and relevant questions. Additionally, these surveys appear right after a customer interacts with the brand and sound more human than traditional questionnaires. Personalized surveys make customers feel valued and make analysis easier for companies for their meticulous points.

Engagement should be the primary goal. Create a survey designed for action: it should be something that will make significant changes both for the brand and the customer. Surveys are opportunities to know more about buyer behavior and find ways to personalize your services to meet their needs. 

Personalized Searches

E-commerce platforms like Amazon show how much they care and know about customer behavior with filtered product results. Personalized search aims to offer relevant information whenever the customer searches for a product or service. 

For example, when a customer looks for food neon signs, you can incorporate suggestions such as pizza neon signs or bar LED signs. As a trusted brand, it shows that you're not simply trying to sell something but also giving the customer useful options to make a wise buying decision. 

Geo-Location Personalization

Your offers can vary per location (e.g., shipping policy, limited discounts, special services). Therefore, it's necessary to segment customer locations to ensure you're offering the right information about your products. Personalize by redirecting your visitors to a geo-based version of your site. It can be an automatic redirect, or visitors have the option to select their preferred shopping location. 

Doing this will help boost conversions and make strategic planning easier since you can get location-based data, which is more specific. Additionally, it's handy for personalizing emails or social media content to promote or show support for local events.

Category Finder

Customers love to get asked about their shopping interests. It helps you focus on offering relevant results that would most likely turn into a sale. One example is incorporating a category finder:

  1. Online stores display a set of category selections.
  2. Customers pick a category they are interested in.
  3. The site shows products relevant to that particular category. 

It makes the shopping experience easier for both customer and brand: the customer filters items as desired, while the company analyzes specific buying behavior. Additionally, it's a creative way of engaging the customer to browse your store and significantly decreases the site's bounce rate.

Upsell Technique

Persuade to upgrade: this is the basic rule of the upselling technique in personalization. It means recommending an upgraded version of an ordered product, even after checkout has been made. Thus, it increases the chances of repeat purchases and customer loyalty.

For example, a customer recently bought a basic knife set. To upsell, the Amazon seller can suggest an extended version of the set—perhaps something that includes a knife sharpener or with more high-end quality. The customer might decide to go for it, especially if the pricing doesn't have much of a gap or if the item's quality is very promising. 

Conclusion

If you're not using personalization yet, now's the time to learn and implement it! Many businesses have lost revenue because of the lack of e-commerce personalization. We don't want the same thing to happen to your brand, so we recommend you start applying this eCommerce strategy. Begin with understanding customer behavior: find out their preferences and seek the right technologies to implement a seamless shopping experience.

It might not be easy to figure out the right personalization strategy and technology at first. You will learn about many techniques and tools, which can be overwhelming. But, again, use customer data to spearhead the development of your actions. If you need some help with an e-commerce Amazon strategy, send us an email at [email protected] or give us a call at 1-800-820-3746. 

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