The Secret Sauce Of Amazon

No two customers are ever alike. And neither is their shopping behavior. Customer behavior is a function of several factors and is influenced by the customer’s culture, social class, family size, salary level, age, gender and several other demographic and economic parameters.

In the age of the Internet when buying and selling have become very convenient, literally at the fingertips of a consumer, gaining a superior understanding of a customer’s shopping behavior has become vital.

Everyone knows that Amazon is globally the most popular and preferred e-commerce website but what’s less known is how Amazon has done it. Let me share their secret with you.

3 Critical Insights For Amazon Success

Amazon tries to predict the next move of every customer who visits its online store. It provides the options to the customer which not only creates a superior customer experience but also leads to a faster sale and adding him/her to the list of loyal customer.

What’s in the mind of the customer?

For an ecommerce store, it is very important to try and answer the question – What’s in your mind? To reach to this answer, there are a series of questions to be answered beforehand.

  • Is the customer visiting the first time or repeat?
  • Do I have any demographic information of the customer?
  • What is the previous browsing history?
  • What is the previous purchase history?

Amazon gets the insights on these questions through customer analytics. It mines the huge customer data present in the system and identifies the probability of what the customer might be looking for today?

For ex: If Amazon knows the person visiting on the website is from Europe and it’s the football season and has purchased the products earlier related to football, then Amazon would throw up the Football jerseys of different clubs in the first go.

Every ecommerce store has this data available to them and you can also start predicting what’s on your customer’s mind. This information always gives an ecommerce store an upper hand in closing the sale faster.

What will lead the customer to press the pay button?

As an ecommerce store, pitching the probable list of products which your customer might be interested in, you have engaged the customer in the right direction and made him/her spend more time on your site.

But then there could be many reasons why your customer might or might not buy. So the next set of questions which Amazon reads in the customer’s mind are

  • Is the customer more price sensitive?
  • Is the customer more feedback sensitive?
  • Is the customer more product sensitive?
  • Is the customer more manufacturer sensitive?

Amazon derives the insights for these questions through customer and product analytics. It not only mines the huge customer data present but also gets it in combination with the products info like the price, reviews, manufacturer’s reputation and shipping behavior and then gets the right set of recommendations for the customer to give him all the reasons to go ahead and press the buy button.

Continuing with the same earlier example,  Now as Amazon knows that the customer is looking for Jerseys, it will go to the next level to pitch the right set of jerseys based on the prediction of whether the customer is price sensitive or review sensitive or quality and shipping sensitive.

Though the ecommerce stores have the required customer and product data, generating recommendations or pitching the right product first is a little complex as you have to combine different data sets and get the best set right and put forward the products which are just right for your customers.

Getting to the homes of the customers

Shipping price and speed play an important role that controls customers’ willingness to buy products on Amazon. Retailers are probably more aware of Amazon as a competitor, and Amazon’s shipping options could be playing a big part in setting these speeds and price related consumer expectations.

After analyzing huge inventory, shipping and cart abandonment information, through analytics, Amazon has come up with a list of products that customer would not wait for more than 2 days and this lead to Amazon starting an offer – two-day shipping. This was a huge success for Amazon.

Still going deeper, Amazon came up with Amazon Prime option, where the shipping is not only fast but free once the enrollment fee is paid. Customers loved the convenience of having items delivered as opposed to getting them from the store and as long as it is fast and cheap, it is a choice they will make over and over again.


Using analytics, Amazon has successfully made the right business decisions and shaped the superior online experience for the customers through a superior understanding of its customer’s shopping behavior. Ecommerce Analytics gave the insights of knowing how long the customer is willing to wait and what premium they will pay for faster delivery which not only added another stream of revenue generation for Amazon but also developed a loyal customer base.

If you would like to discover how analytics could boost your business, talk to the Analytics Expert at ComTec. Find out where to start and get access to analytics capabilities. Email us on

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