Bre Marketing

“I Don’t Think Online Business is a Profitable Thing”- Well Amazon, Apple, and Staples Disagree

In fact, they are ranked on the top places for 2014 and are bringing up to $100 million a year in e-commerce according to internet retailer.com
Super power retailers agree that each year, there is at least a 12% increase in sales. So if these quick stats have still not surprised you, let me tell you a little bit more about one these three E-Monsters.

Amazon first opened their doors to us in 1995. Their logo specifically explains their mission: to offer you anything you could think of (essentially from A to Z)

As a pioneer, Amazon proved that e-retail could easily be a profitable business. By 2001, their net profit was $3.1 billion in net sales. By 2011, Amazon declared they made $48.1 billion in net sales and $631 million in net income.

So what is amazing about Amazon? Not only its performance but its beginnings. It started as a book seller, then crossing over into an online retailer that sold everything. Amazon strengthened its performance by selling merchandise from manufacturers and re sellers, not to mention that by 2012, Amazon started renting out books. 

In addition, Amazon started partnering with many other companies. Revenues increased due to these partnerships because of commissions, fees, and offering delivery of the products. Last but not least, Amazon takes customer service on its own hands; if anything is wrong with the merchandise sold, Amazon has great return policies.

This is not all. Amazon tops it off with being and e-partner, developer, advertiser, service provider, content provider etc. If anyone knows how to do it, Amazon does.

So when you see much success you can’t help but wonder, “How did Amazon do it?”

There is not a single answer to how but there is a place where you can start: Strategic E-Marketing Planning.

Strategic Planning is the process in which you will plan between your company’s goals and your capabilities.

Start by considering what your plans are, how much do you want to grow up is sales, revenues, and how fast? Don’t forget to include important factors such as competition in town and market factors such as supply and demand.

Geographic Scope is also something to consider. Where should you offer your products or services? Where should you establish? Is your objective to become a chain company? Although this might sound irrelevant, this is an important factor because it will determine if demographics will work to your advantage.

Competitive Position should not be ignored. How competitive will you be against your opponents? Or how though will be to compete against them? Since you are the new business in town, how will you put yourself in a competitive place? This can be done in many ways but it’s up to you to decide what works better and what you can afford. Should your prices be more affordable? Or should your services be more valuable? Will your business operating hours be better? And will you offer more sales and discounts?

In conclusion, start brainstorming on your E-Strategic planning and do your homework as hard as you can. If Amazon did it, you can do it.