In 2017, Amazon revealed that their 4th quarter income for the year was $60.5 billion. This humongous 11-digit earning is an attestation that people spend a lot of money buying gifts for Thanksgiving and Christmas. It’s no doubt that Amazon is a major player in the retail industry, and they can easily convince practically anyone to buy from their store. So, now, I will list a few strategies that Amazon uses in selling a wide array of products.
- If Amazon is known for something, it would be upselling.
- By the way, what is upselling? I’m sure you are familiar with this strategy when you are buying at fast-food chain. The crew would normally ask you if you would like some flavored fries instead of the regular fries you ordered.
- Basically, upselling is a seller’s way of convincing the buyer of spending more on products that would enhance or upgrade main product, which is already is on the customer’s shopping cart.
- It’s not just that food industry that uses this strategy. In fact, a lot of online retailers practice upselling. No matter what industry you are in, there’s an endless possibility on how you are going to upsell. If you part of the hospitality industry, you can suggest upgrading the room or changing the room type.
- Cross-selling happens when you suggest similar products to what’s already in the cart. It involves proposing a product that works well with the existing purchase.
- For example, when you search for a portable speaker on Amazon, one of the choices is the DOSS Touch Wireless Bluetooth V4.0 Portable Speaker. Amazon, then, reminds the customer that the speaker is “frequently bought together” with a shockproof carrying case, and a 3.5 mm aux cable. The customers won’t have trouble adding these 3 items because in just one click they can easily add it to their cart and buy them together.
- Since your customers are sure that they are buying something, this is the perfect timing to sell more items to them. This would mean more profit for you, of course! In 2006, it was reported that almost 35% of Amazon’s income is due to cross-selling similar items.
- As consumers, we always want to take part of a great deal. We can’t say no to an item especially if we know that we can save a lot when buying in bundles.
The pre-sell strategy.
- What is this? Pre-sell is when you are going to sell your goods in advance.
- What can you pre-sell to your customers? The top answer would be books. Amazon sells print copies and digital copies of books that aren’t even published yet. Numerous New York Times bestselling books are selling like hotcakes long before they hit the shelves!
- Aside from books, workshop and concert tickets are easy to pre-sell. Before the said event, tickets are sold-out. Excited fans are buying them the moment they are available in various ticket booths.
- Usually, when items are for pre-order, retailers like Amazon encourage their customers to buy by offering a pre-ordering discount. If you’ve notice, books are 10% off, 15% off, or even more when are not yet available. As soon as books are released, books are sold on its regular price.