Selling on Amazon: Killer success factors in eCommerce



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Within this text, the Success Factors in eCommerce according to the models of e-business experts Prof. Dr. Gerrit Heinemann from the Niederrhein University explains. Heinemann derives eight key success factors from his model, which he describes as 8S success factors in eCommerce.

Selling on Amazon: killer success factors in the eCommerce kiler

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8S success factors according to Heinemann in detail

Overview

With the help of several years of analyzes of consulting projects, business and experience reports and publications which directly or indirectly related to eCommerce, Heinemann summarized his results in these success factors.

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If one considers the 8S success factors of Heinemann in connection with the Amazon volume, the XNUMXS success factors, it can again be stated that already five success factors are guaranteed by the Amazon concept.

The benefits of Amazon

Overview

Doubtless, the Amazon Shop offers its customers a unique attracting force with a profiled performance promise. In addition, many Amazon communities already exist.

Recently, Amazon is even active in social networks such as Facebook. A more convenient self-service as Amazon offers, you have to look for in eCommerce long.

Search algorithm and supply chain

Overview

The search algorithm supported by Amazon A9 provides an unprecedented performance. In terms of security standards and security reputation, Amazon is also a leader in the industry.

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Amazon won several awards for its excellence in the system and supply chain. This is also a core competency of the largest German eCommerce provider.

The biggest success is Amazon itself

Overview

Looking closely at Heinemann's 8S success factors, it is clear that the Marketplace retailer already has a high potential for success through the use of the Amazon Marketplace sales channel alone.

If the latter ensures that the other three success factors are ensured, a high probability of success for the entrepreneur is no longer an obstacle.

Important: A good sourcing concept

Overview

The task of the retailer is primarily to look after an excellent sourcing concept, as possible purchasing shortcomings can hardly be absorbed by the remaining value chain.

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At this point it is indispensable for the dealer to have good, fail-safe sources of supply. In addition, the retailer should try to customize the customer approach.

The use of CRM systems

Overview

For this purpose, the use of a specially optimized for online retailers CRM system is recommended. In order not to push yourself into an absolute dependency of the Amazon Marketplace, it is recommended to establish parallel to the business with Amazon also a separate source of sales.

Only in this way is it possible in the medium or long term to achieve a brand image based on the strategic success factors of Wirtz. This development of an independent brand in eCommerce is certainly a lengthy and time-consuming process, which is associated with non-negligible cost.

However, it is recommended that part of the cash flow, which can be generated with the Amazon Marketplace in a relatively short time, to invest in the development of a separate brand, if a sustained commitment to the market is desired.

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8S success factorDescription
Shop-Attraction and Selling-PrepositionUnique attractiveness of the e-shop and a clearly profiled performance promise
Social-Targeting and SocietingExtensive use of communities and social networks
Service and search solutionsExcellent and fast self-service, service, and search solutions
Singular-focused-Customization and PersonalizationMaximum possible individualization and personalization of the customer approach
System and Supply Chain ExcellenceSystem and supply chain excellence
Security standards and reputationBest possible security standards and reputation
Supplement- and Support-Channel-StrategyComplement the online lead channel with supporting sales and communication channels
Sourcing Concept and Strategic AlliancesSourcing concept and strategic alliance partnerships

"Killer" differentiation factors according to Heinemann

Overview

Heinemann sees a clear differentiation of the online shop business model as necessary in order to be able to form a polarizing consumer behavior. As shown in the figure below, Heinemann distinguishes between the four different strategic orientations, "killer" product, "killer" award, "killer" service and "killer" feature.

So Heinemann comes to the conclusion that an online retailer must fully serve at least one "killer" differentiation factor in order to be successful at all. However, particularly successful online retailers are pursuing as many of the "killer" differentiation factors as possible.

The 4 "killer" success factors

Overview

  1. "Killer" product: Under "Killer" product the assortment of the online retailer. Here it is crucial to offer the customer an attractive offer ("killer" category), which on the one hand matches the brand statement of the shop, on the other hand is offered at an attractive price-performance ratio. "Killer" products impress with their high enthusiasm for the customer, are suitable for "viral" marketing "and often lead to an intense word-of-mouth propaganda.
  2. "Killer" award: The same applies to the differentiation factor "killer" price, which in any case must stand the comparison with competitors within the transparent eCommerce area.
  3. "Killer" feature: "Killer" feature refers to the property that the user of an Internet channel receives added value, which in its form, however, can be very different. Thus, these added values ​​range from an interactive platform, where the customer and supplier can exchange views, to solving a programmatic problem.
  4. "Killer" service: On the one hand, Heinemann sees "killer" services as excellent self-service functionalities in which, for example, a portal is made available to the customer so that he can follow his orders, or initiate the process of reverse processing independently. These include factors such as speed, usability (usability), as well as a compliant complaints and returns handling.

How does Amazon support its dealers?

Overview

The Amazon Marketplace supports the online retailer in the differentiation factors "killer" feature and "killer" service by offering the end customer all functionalities under a general account through the usual Amazon web interface. This represents a tremendous facilitation of the transaction for the end customer.

Also in terms of the service, Amazon offers a variety of self-service features that are also offered for the Marketplace. For the differentiation factors "killer" product and "killer" price Amazon provides the necessary resources to present the assortment; However, to what extent the latter differentiation factors are used by the founder of an establishment for the benefit, is the sole responsibility of the latter.

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  1. Daniel Holzner

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  2. Reini

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