What an Entrepreneur Can Learn from Amazon?

by Dragan on 14/05/2010

in Sales

The sale is the art and science at the same time. Science for the application of scientific methods and techniques in a sales system in which there is domination of psychology. Art because of entrepreneurial creativity, which makes successful businesses to differ from the average one.

Amazon is one of the biggest sellers on the Internet. Although the primary function of this company is based on the Internet it doesn’t mean that the principles, creativity, methods and techniques cannot be implemented in offline businesses.

Amazon didn’t invent anything new, they just made a good combination of the improved sales techniques used in successful offline businesses to build their online empire.

Let’s see how Amazon makes a sale. In this presentation, I will not go in importance of each element that will be mentioned here, but simply from the top of the website I will use for this presentation.

1. Recommendations

Recommendation

As you can see on the picture, after a welcome message they immediately give me recommendations. Amazon keeps records or knows what I previously purchased and based on that they make recommendations about what they think I would want to buy.

Knowing your customers is the key to design your successful business.

2. Introduction of Product

Introduction to the Product

While this is a still electronic vendor, special attention is paid to familiarize prospective customers with the product. So you can see the content and certain parts of some chapters that have aim to decide for purchasing.

3. Attempt to Upsale

Upsale

If I am still in the thinking mode and go through the page below, seller is trying to make upsale with a recommendation of another book, that if I buy it together I will receive 5% discount. Upsale is a sales technique where the seller offers the buyer additional products for the purpose to increase sales from that one buyer, and thus to generate more income and normally more profits. This technique is used to reach the maximum from each sale.

This discount is not too much (in this case it is only one dollar), but on the other hand, draws attention in the form of recommendations and benefits. 5% sounds much better and will attract more attention than one dollar.

4. Presentation of Other “Related” Products

Related Products

Furthermore, the seller presents other books that are in some way related with my subject of interest, or books that other customers have purchased in addition to the book that right now I consider as a potential buyer. If I look at a book from business related theme they will not offer a presentation of books that are related on cooking recipes.

At this point, the seller is trying to increase sales or in a last case to make me aware about possibilities of future purchases of some of these other products.

5. Additional Presentation of the Product

Benefits instead of Features

The seller one more again wants to bring me close to the product through a few words by the publisher. However, what matters is the content of this review. See only the underlined words in red. They are not features of the product but benefits that I will receive as a potential buyer if I buy the product.

6. Comparison With Other Customers

Comparison with other customers

Everyone wants to be with the majority. Well, so with this attempt seller wants to show me that 64% of other consumers immediately buy this book. On the other hand, the list below is a trying to make upsale with other popular books that were purchased by consumers who also have purchased the product that I am currently watching.

7. Reviews by Those Which Already Bought the Product

Reviews by consumers are very powerful marketing weapons. If after everything above I still didn’t make buying decision, the seller gives me a chance to read what is the opinion of other people who buy the product. The idea is to encourage me to make a right buying decision now.

This is simply a recommendation by the customers that businesses can use to sell or increase sales.

I think it is enough to recognize the logic of a salesman – robot. They want their sales funnel always to be full.

Notice that nothing is new in this way of sales. For example, McDonald’s consistently offers a combination of products, seller is constantly trying to make upsale, always have some recommendations …

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