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markus-fostMarkus Fost is the winner of the Vendor Award and works in business development as well as a consultant to the board at metabo. Markus Fost, BA cand. MBA, born in 1984, studied business administration at the HfWU Nürtingen-Geislingen. In his professional activity for well-known industrial companies and consulting companies, he was able to gain extensive experience in the e-commerce sector. Markus worked for Graupner GmbH & Co. KG for a total of nine years, most recently in 2009 - 2010 as Commercial Director / CFO. In 2009 he was given the Vendor Award Climber of the Year by Amazon.de as part of his work at Graupner GmbH and Co. KG. Markus Fost is currently working at the power tool manufacturer metabo in business development and as a consultant for the CEO and CFO. More information at www.all-ecommerce.de

Selling on Amazon: Killer success factors in eCommerce

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.


8S success factors according to Heinemann in detail

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.

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

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 has even been featured in social networks such as Facebook active. A more comfortable self-service service like the one Amazon offers takes a long time to look for in eCommerce.

Search algorithm and supply chain

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 factor is Amazon itself

If you take a closer look at Heinemann's 8S success factors, you can see that the marketplace retailer already has a high potential for success solely through the use of the Amazon Marketplace sales channel.

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

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.

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

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.

8S success factorFeatures
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
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

Heinemann “killer” differentiation factors

For the future, 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 can be seen in the figure below, Heinemann differentiates according to the four different strategic orientations, “Killer” product, “Killer” price, “Killer” service and “Killer” feature.

This is how Heinemann comes to the conclusion that an online retailer has to use at least one “killer” differentiation factor in order to be successful at all. However, particularly successful online retailers pursue as many of the “killer” differentiation factors as possible.

The 4 “Killer” Success Factors

  1. “Killer” product: Under “Killer” product the range of the online retailer. It is crucial here to offer the customer an attractive offer (“killer” category) which on the one hand fits the brand statement of the shop and on the other hand is offered at an attractive price-performance ratio. “Killer” products impress with their high level of enthusiasm among customers, are suitable for “viral” marketing ”and often lead to intensive word-of-mouth propaganda.
  2. Killer Prize: The same applies to the differentiation factor “killer” price, which must always stand up to the comparison with competitors within the transparent eCommerce area.
  3. “Killer” feature: A “killer” feature is the property that the user of an Internet channel receives added value, which, however, can be very different in its form. These added values ​​range from an interactive platform on which customers and suppliers can exchange ideas to the solution of a programmatic problem.
  4. “Killer” service: Heinemann understands “killer” services on the one hand as excellent self-service functionalities, in which, for example, a portal is made available to the customer so that he can track his orders or initiate the process of reverse processing independently. This also includes factors such as speed, usability (usability), as well as a complaint and return processing.

How does Amazon support its dealers?

The Amazon Marketplace supports the online retailer in the differentiation factors “killer” feature and “killer” service by offering the end customer all the functionalities under a general account through the familiar Amazon web interface. This makes the transaction a lot easier for the end customer.

With regard to the service, Amazon also offers a variety of self-service functionalities, which are also offered for the marketplace. For the differentiation factors “killer” product and “killer” price, Amazon does provide the necessary resources to present the range; The extent to which the latter differentiation factors are used by the entrepreneur for the better is solely up to him.

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2 responses to "Selling on Amazon: Killer success factors in eCommerce"

  1. Daniel Holzner says:

    On your side you will always find very helpful tips, thanks for that.

  2. Reini says:

    It's funny. Just yesterday I discussed this with someone, today I find your contributions via Google. Great.

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