8 Ways Amazon's Service Shines
Named the country's most trusted company by a 2014 Millward Brown report, Amazon.com continually reinvests its profits to improve communication with customers, speed up service and find innovative delivery methods. By focusing on long-term growth over immediate profitability, Amazon has gained an extremely loyal customer base. Here are eight ways the U.S. e-commerce giant puts service first:
1. Nonstop support: Amazon's customer service is everywhere. From an easy on-site customer service center to chat rooms, blogs and threads, the retailer comes to you. I've even found an Amazon customer service representative on Reddit, solving problems and answering questions about early access codes for video games. Amazon's team has the freedom to actively solve problems, not just redirect the customer.
2. Coming to a city near you: Amazon has 78 fulfillment locations in 19 U.S. states and two provinces of Canada. The company has spent almost $14 billion on fulfillment services this decade alone. Amazon is often criticized for its low profitability, but its investments in infrastructure position the company for future growth. While that money could have easily been saved, along with costs for maintenance, staffing, leasing and inventory by having just a few centralized warehouses, nothing can compare to the lightning-fast service. Amazon's vast number of fulfillment centers allows it to provide faster and cheaper delivery — two huge perks for customers.
3. Flying delivery robots: Unless you've been living under an internet-free rock, you've heard about Amazon's potential drone delivery service. Dubbed Prime Air, the fleet of unmanned aerial vehicles would air drop packages within 30 minutes of a customer order. Many have speculated that this announcement just before Black Friday was nothing more than a publicity stunt. Whether it comes to fruition or crashes and burns (not literally I hope), it's gotten customers talking about the company's futuristic ideas, advanced services and all-around cool factor.
4. Intense personalization: You know those emails you get that say, "Hey, Mary, look at these products!" That's kids’ stuff. Amazon is constantly perfecting a genuinely tailored shopping experience with relevant and interesting products directed to each individual. This includes personalized emails, site zones and shipping items closer to you before you order them. That's right. Products that are viewed more frequently and for longer periods of time are sometimes pre-emptively shipped to warehouses closer to your location so if and when you order, they'll get to you that much faster.
5. Easy reordering: One-click orders and reorders take the hassle out of getting essentials. And for items that are often ordered repeatedly (e.g., diapers, toiletries, food), Amazon lets you subscribe for a discounted price. Combining this with one-click ordering makes the process a positive experience for retailers and customers.
6. Lenient return policy: Amazon's lax return policy means customers don't have to worry about being a little too fast and loose with one-click shopping. Amazon makes sure items purchased are accepted for returns within 30 days of receipt. For example, I once ordered a product, submitted the return form, and was informed by Amazon that I would receive the refund but returning the product wasn't necessary. Furthermore, in disputes between the customer and other merchants, Amazon's willingness to put the customer first has been largely responsible for it becoming the most trusted brand in the country.
7. Encourages (controlled) competition: Amazon customers can either purchase an Amazon-fulfilled product or choose from another retailer which stocks the product. Amazon also allows merchants to sell goods as "new," which is a rarity on selling platforms. While it's noble of Amazon to give competitors a shot, the retailer puts a lot of pressure on them to offer quality products and stellar service. If third-party merchants don't maintain their ratings level, which is largely a reflection of their service, they can be kicked off Amazon.com. The "Buy Box" algorithm uses total landed price (item plus shipping), fulfillment by Amazon, company rating and shipping time to control a user's experience.
8. Always learning: In 2009, Amazon purchased online shoe retailer Zappos. Admired for its stellar customer service (including a 365-day return policy), Zappos clearly shared values with its new parent. But while Amazon could have enforced its own policies and regulations on the smaller company, it didn't. It allowed Zappos to continue building its brand. What's more, Amazon adopted one of Zappos’ policies. Starting this year, Amazon will offer from $2,000 to $5,000 to any employee who wants to quit. Maintaining a dedicated staff that truly wants to be part of the team is critical to the online retailer. Amazon's merger with the smaller, innovative Zappos shows that the e-commerce giant still believes there's always more to learn.
While there's definitely a method to Amazon's madness, it's one that takes time, staff and money to pull off. Though many of these actions aren't feasible for a small or mid-size business, they do illustrate the importance of customer service. Amazon's investment has given it a head start on competitors, and unsurprisingly attracted hundreds of millions of loyal customers along the way.
David Rekuc is marketing director at Ripen eCommerce, a full-service digital agency that specializes in delivering custom eCommerce solutions. David can be reached at david.rekuc@ripeninteractive.com.
