Why is Amazon So Successful? Explained

Amazon is a multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. Founded in 1994 by Jeff Bezos, Amazon has become one of the most successful companies in the world. This article explores the reasons behind Amazon’s success.

Why is Amazon So Successful?

What Makes Amazon Successful

Amazon’s success has been a topic of discussion for years. From humble beginnings as an online bookstore, the company has grown into a global retail giant. Its market capitalization surpassed $1 trillion in 2018, and the company continues to dominate the e-commerce industry. So, what makes Amazon so successful?

Customer Centricity

Amazon has made customer centricity a core part of its business strategy. The company focuses on creating a seamless customer experience, from browsing products to checkout and delivery. Amazon has also invested heavily in data analysis and machine learning to personalize product recommendations for its customers. This focus on customer experience has led to high customer satisfaction rates and repeat business.

Innovative Technology

Another factor contributing to Amazon’s success is its innovative use of technology. The company has developed a range of cutting-edge technologies, including Amazon Web Services (AWS), Alexa, and Prime Video. AWS is a cloud computing service that has become the backbone of the internet, powering websites and applications around the world. Alexa is a virtual assistant that allows users to control smart devices with their voice, while Prime Video is a streaming service that competes with Netflix and Hulu.

Efficient Supply Chain

Amazon’s supply chain is another key contributor to its success. The company has developed a highly efficient system for storing, picking, and delivering products. Amazon’s fulfillment centers are strategically located near major cities to ensure fast delivery times. The company has also invested in advanced robotics and automation technology to streamline its supply chain operations.


Amazon‘s success is also due to its diversification strategy. The company has expanded beyond e-commerce into a range of other industries, including cloud computing, digital streaming, and artificial intelligence. This diversification has allowed Amazon to leverage its existing infrastructure and customer base to enter new markets and generate additional revenue streams.

Disruptive Pricing

Amazon’s pricing strategy has also played a significant role in its success. The company has disrupted traditional retail pricing by offering lower prices and free shipping to its customers. Amazon’s ability to offer lower prices is due to its economies of scale and efficient supply chain. This pricing strategy has helped Amazon capture a significant share of the e-commerce market.


In conclusion, Amazon’s success can be attributed to a range of factors, including customer centricity, innovative technology, efficient supply chain, diversification, and disruptive pricing. The company has become a dominant force in the e-commerce industry and continues to expand into new markets. Its focus on customer experience and innovation has allowed Amazon to stay ahead of its competitors and remain one of the most successful companies in the world.

Also read: How To Create SKU for Amazon

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