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Tag: E-commerce Sales

  • Seven Psychological Tricks Applied By Amazon In 2022

    ‌‌‌‌Amazon is the most common e-commerce platform providing services across the globe. The start of an Amazon was quite simple with a single product in its basket. Now in the year 2022, Amazon consists of millions of products on its e-commerce platform. Apart from the e-commerce market, Amazon has also topped in its Technology business.

    It is not an easy task to manage and achieve a position as high as Amazon has reached. There are many tactics applied by Amazon in all possible directions. The prime service enabled by Amazon earned it many customers. Especially those who wanted to receive their product delivery within a short period. Apart from these, Amazon is famous for good quality products at a lower rate. To achieve this, Amazon applies many Psychological Tricks in its pricing strategy.

    Amazon’s Pricing Strategy
    Need Of Using Psychological Tricks By Amazon
    Basics of Amazon Data Collection
    Psychological Tricks Applied By Amazon On Its Pricing Strategies:
    1. Concepting The Prices Lower Than Other Platforms
    2. Grouping For Comparison
    3. Preparing A Free Gift For Customers
    4. Additional Clarification
    5. Periodic Sale
    6. Attaching Social Reviews
    7. Summing Up The Cost With Number 9

    Amazon’s Pricing Strategy

    Each platform has its pricing strategies built for better functioning. Pricing strategies are essential to finalize a cost of a particular product or service by considering many related aspects such as market conditions, demand, supply, etc. Amazon also has many strategies to use for its pricing model. The pricing model used by Amazon is to keep the prices as low as possible to achieve a higher buying rate. Based on this model, pricing strategies are planned.

    Need Of Using Psychological Tricks By Amazon

    The graph demonstrates a tremendous increment in the annual net sale of Amazon mainly because of its strategies
    The graph demonstrates a tremendous increment in the annual net sale of Amazon mainly because of its strategies.

    Each seller needs to be ahead of others. For this purpose, they need to use tricks. One of the most useful methods is to apply psychological tricks. Psychological tricks are used to make customers believe that the deal cracked by them is truly a saving one. However, Psychological tricks are just a trick. There are many tricks one can apply for increasing sales.

    Apart from each seller, Amazon as a whole also needs to be ahead of its competitive platforms. For this purpose, multiple psychological tricks are used by Amazon in its pricing strategy.

    Basics of Amazon Data Collection

    It is not a mystery now that all e-commerce platforms collect their users’ data. This data is then used by the platforms to provide better services. The same is done by Amazon too. Amazon collects all inputted data from its users such as searches made on Amazon, filters applied, etc. This data is then combined with a few psychological tricks to make Amazon work as a customer store.

    Psychological Tricks Applied By Amazon On Its Pricing Strategies:

    Amazon is a continuously evolving platform. There are many chances for one trick to be applicable now and get an alternative after some time. This is mainly because the process is always applicable to improvement. Some of the psychological tricks are:

    1. Concepting The Prices Lower Than Other Platforms

    Amazon is known for its high-quality products at cheap rates. But is it factual or just a concept? Amazon sells its products at an average rate and not at low prices. However, the most trending products are sold at Lesser prices than on other platforms. This itself allows the manufacturers to sell a higher number of products at a minimum profit. On the contrary, some products have significantly higher prices on Amazon to indicate a better pricing strategy for customers.

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    2. Grouping For Comparison

    Similar Items are grouped together to provide a better understanding and comparison of products without the need of visiting any other place.
    Similar Items are grouped together to provide a better understanding and comparison of products without the need of visiting any other place.

    Comparison is the key to reaching a decision. Amazon understands this well. Amazon allows its users with three or more similar options of the same product with different packages. This allows the customers to make better choices from a single platform only, rather than going to other places for comparison of prices.

    3. Preparing A Free Gift For Customers

    Giving a free trial always has a better impression on customers. It can give them trust in the provided facility. Way Amazon allows its customers the facility of using Amazon Prime free of cost for 30 days. Once a customer starts using this facility, they will indirectly feel debted to Amazon. One can also try to purchase as much as possible in this period just for the sake of that membership. It can also make others purchase the facility once its free trial is completed.

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    4. Additional Clarification

    The complete clarification about shipping details helps in the proper placement of orders as per need.
    The complete clarification about shipping details helps in the proper placement of orders as per need.

    There are many customers purchasing orders from Amazon as a gift. Giving out clear clarification about shipping details and days required for the order to arrive can ultimately speed up the process of purchasing. This can be because no one likes to receive the product after its needed date. This step gives an ultimatum to customers without the actual use of any warning.

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    5. Periodic Sale

    Periodic sales work as a time bomb, the difference is that they work on the human mind. For any product available in the sale, with a limited time offer. Customers do not have the option of pondering much on the same thing. This forces the customers to make a quick decision. Hence, eventually, they can also lead to good sales once the psychology is well understood.

    6. Attaching Social Reviews

    Customer Reviews Summed Up For Easy Understanding.
    Customer Reviews Summed Up For Easy Understanding.

    Almost everyone goes to the comments section of Amazon before purchasing a product. This gives the impression of the received product. There are thousands of users purchasing products from Amazon. Each customer can’t read all the given comments for a better understanding of the product. Hence, Amazon came up with a great solution of summarising all comments into one simple rating box. This allows quick and easy identification for customers.  Higher the rating, the higher the number of customers willing to buy the product. Keeping the review and rating box on the product detail page is a great innovative step taken by Amazon.

    7. Summing Up The Cost With Number 9

    The Easy Explanation Of "Charm Pricing".
    The Easy Explanation Of “Charm Pricing”.

    Also known as “Charm Pricing“, it is considered one of the most successful strategies used by Amazon. In this method, the left number of cost is exchanged with the number “9”. Price number ending in 99 or 9 number makes the Price looks quite lesser than the whole number of cost. It primarily deals with the thought process of the human mind. It is estimated that Nine ending prices are slightly lower than the one ending a process or whole numbers.

    Conclusion

    Amazon is known for its multiple services. It is one of the best examples to acknowledge e-commerce platforms. Amazon is always in a changing phase. Amazon has its share behind making great Strategies for its products to be on top. This takes the teamwork of both the manufacturers and Amazon together for increasing its rank in the eye of customers. Amazon is always known for its good quality products at less prices. To maintain this, Amazon takes the help of psychological tricks. Some of the psychological tricks have been explained above.

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    FAQs

    Who is the CEO of Amazon?

    The current CEO of Amazon is Andy Jassy.

    When was Amazon Incorporated?

    Amazon was incorporated in 1995.

    What is the cost of Amazon Prime for one month?

    Amazon Prime costs about Rs 179 per month.

    Do retailers use any tricks to increase their sales?

    Retailers on Amazon use a number of tricks in order to achieve a higher sale compared to their competitors.

  • How Can D2C Brands Use Data to Grow E-commerce Sales?

    The article is contributed by Mangesh Panditrao – CEO and Co-Founder, Shoptimize.

    Propelled by the incumbent pandemic, online shopping has gained immense traction over 2020 and 2021, and the positive ripple effect is still being seen in the e-commerce industry. Throughout this period, e-commerce and omnichannel businesses innovatively leveraged the digital avenue to manage their offline stores and sustain themselves in the pandemic-battered business environment. However, with the rising competition, the next phase of success for e-commerce companies will be led by a deep understanding of the target market and meaningful connections with the customer. This is where data comes into effect.

    Significance and Benefits of Data in E-commerce

    Data Assist Brands Stay Updated With Crucial Business Insights

    The overarching goal of every business is to increase its revenue. To accomplish that, the brand must make the right decisions at the right time, which can be done efficiently by analyzing data. Insights driven from consumer-centric data can help brands understand how the company is being perceived by customers, how the brand is performing in different markets, and the improvements required to maximize profits. This allows businesses to serve consumers, grow revenue, and improve operations.

    Enables Brands to Provide Personalized User Experiences

    Understanding how customers interact with your company is critical to determining what appeals to them. As a result, e-commerce companies might leverage data analytics to better understand their customers’ needs and improve their end-to-end purchasing experience through personalization. For instance, various platforms use data to understand customer demographics and tailor their marketing messages to suit different cohorts of consumers.

    Helps in Making Data-Driven Decision

    Customers’ needs are constantly changing, and with many brands available, they have more options than ever before. And to keep up with the ever-evolving needs of the consumers’ D2C brands will need to focus on improving their capabilities. Hence, data-driven decision-making is necessary for success. Brands may track their customers’ preferences through data and analytics based on factors such as location, demographics, and online behaviour. An evidence-based data enables brands to make informed decisions and thoughtfully prepare to achieve their objectives.

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    How Brands Can Leverage Data to Increase E-commerce Sales

    Converge Data From Various Platforms and Channels

    Ever since doing business went digital, the amount of data it has been generating on the side continues to get bigger and bigger every day. Analyzing this data to make critical decisions becomes overwhelming for internal teams and marketing companies. It requires a highly specialized skill set and cutting-edge technology to gauge insights and aid quick, efficient decision-making. E-commerce analytics helps brands quickly and easily gather data in one place, break down data silos, and increase productivity, efficiency, and business agility.

    Join the Dots Between Your Customers and the Numbers

    Simply collecting data and not being able to use it results in wastage of money and time. After the data is collected, data analytics gives a detailed view of the big picture; it also looks at relationships and patterns among several of its components before delivering business insights. Hence, one way of achieving this is through unified data analytics. Unified data analytics is basically a process that merges data processing with cutting-edge artificial intelligence to deliver business insights and outcomes.

    Know When to Take Action

    Seasonality and trends can play a significant part in your efforts to provide your consumers with the most seamless experiences possible. As a result, it’s essential to consider and maintain a close check on trends to take timely action. Understanding seasonal patterns & trends might assist you in determining how things will pan out throughout the year. As a result, you’ll be able to focus on the right products that are available at the right time so that customers’ expectations are met.

    Reading Data to Understand Websites Shopping Behavior Flow

    To understand the website’s shopping behaviour flow, you can monitor how a customer lands on your site, browses through products, adds them to the cart, and checks out. Sifting through this data will help you understand your website’s purchasing behaviour flow and reveal where customers are more engaged and which paths lead to conversions. Furthermore, it will draw attention to what isn’t working. This will allow you to read your visitors’ minds by observing their behaviour and better cater to them.

    Use Data to Track Your Product Performance

    It’s critical to look at detailed product data for both marketing and sales tracking. It helps in understanding the price band for different consumer segments. How are individual products performing & figuring out the bestsellers and the low-performing products. This allows businesses to devise the marketing campaigns accordingly. Furthermore, keeping track of returns and refunds helps improve the product’s quality. This approach can help an e-commerce business improve its services and quality, increase revenue, and improve operations.

    Conclusion

    Data is critical for businesses to thrive in this digital age. So, it’s high time that companies start making data-driven decisions to succeed at online selling. Integrating e-commerce analytics across the customer lifecycle is essential for creating a competitive customer experience. These findings will help brands improve the discovery, acquisition, conversion, retention, and advocacy process.