What is Amazon Flywheel and How it Works?

You must have been familiar with the momentum and newton’s law of motion if not with the flywheel effect. But nothing to worry about if you are not familiar with both of them. The following article will help you understand it to the core and will let you make good use of it. Yes, at the end of the passage below you will be able to start using this effect for better business growth. The Amazon flywheel is a kind of wheel that revolves on its own after you put enough effort to make it move for your business. It is a cycle that keeps revolving once you set values and put the right tools and plans to keep this cycle works on its own. Yes, it is a kind of process that works automatically to take your business to the next level. You keep putting in the right amount of effort and once your reach a certain limit things start happening for you. 

Jeff Bezos did the same trick for Amazon as he thought of meeting the customer needs by putting in all the effort he could. The idea was followed by effective strategies and the world is now watching this platform succeed. Tell you what; it promises success for everyone registers on it for selling. It just requires putting in the right amount of effort coupled with smart strategic work. 

The Three Key Focuses of The Flywheel 

The amazon flywheel can cause you the virtuous cycle in no time. It is something wonderful for the sellers as it works on the following three key factors. 

• Low prices 
• Huge selections 
• Great delivery experience 

The flywheel primarily focuses on the price and it offers the lowest priced items in the organic search results. It ensures huge selections for the buyers by offering value plus products. And last is a promising delivery experience. Fulfillment by Amazon is designed just to attain that for everyone. A formal Amazon Agency can teach you how to do it in an organized manner.

How Does the Amazon Flywheel Work?

It is good to learn from the platform itself. Amazon had lowered the prices of the items in the first place and that’s what allowed everyone to flock to the store. In other words, we can say that good traffic was generated with that strategy. After attaining the traffic the platform allowed other sellers to join this platform. Now it was not meant to enhance the competition but customer experience. The customers were given a range of offers as they were not bound to buy one in three items at all. And that better customer experience is the only thing that can ensure sustainable growth and more profits. Today, Amazon is known for more than 200 million loyal customers and that is not less than the achievement itself. 

The low-cost structure and lower prices are ensuring growth while the enhanced customer experience is bringing more traffic to the platform. The traffic in turn appeals to the sellers and the selection of products continues. The selection will again cause a spike in the better customer experience. And, any addition at any level in this cycle will keep serving positively. 

Amazon continued to grow with this virtuous cycle and its stock kept gaining price with time. It was just the growth that worked for the platform and its stakeholders. But that growth was always depending on the flywheel effect. 

How Does the Flywheel Effect Work for Third-Party Sellers?

Amazon is not only working for itself but is also bringing growth to everyone that is moving along with this platform. It is proving more than just productive for many small to medium-level enterprises. While the big giants are also flocking to the platform for a better marketing experience. Third-party sellers are always welcomed by the platform just to provide customers some more useful options. Amazon understands that this will always be going to add value to this virtuous cycle. 

But it is not about Amazon alone as third-party sellers have the luxury to engage customers with some wonderful options. The sellers have the opportunity to select FBA for value-added order processing. One can bundle products for more promotions by using this program effectively. However, it is also important to note that increasing sellers only mean increased competition. Sellers will have to lower the prices and will have to rely on the traffic and sales. But even an enhanced level of traffic is not bound to offer a good conversion rate to all of the sellers. 

There are however some other very good options that all sellers can try to improve their listings. Many Amazon hacks can be tried to make good use of the traffic and the platform itself. One can try better keywords, best product images, and much more to stand out from the crowd. 

How Can You Apply the Amazon Flywheel Effect to Your Business?

Well, that’s interesting and it works if you try to strategize appropriately and tend to add value at every stage. You can also push the wheel for your business provided you are ready for it and have a better plan in place. Here is how you can also attain it. 

Develop the Best Products 

The best products always need a lesser amount of money in promotions. Although you are always investing in brand awareness that is just a matter of kick-starting your venture. Once you are in you will always start spending a lot lesser on the promotions as your value-added product will keep appearing in the organic search results. You cannot sell products anymore on a highly competitive platform but you are rather going to sell features. 

Drive Traffic to Your Listings 

Once you have brought some best products onto the listings then it's time to think of bringing traffic to the listings. You can try Amazon SEO for better reach while PPC will also remain effective if you are a newbie to give a push to your flywheel.

Provide an Outstanding Customer Experience 

Remember, Amazon relies solely on the enhanced customer experience in its pursuit for growth. Hence, you should also try to carve ways to deliver your customers a wonderful experience. It will help you grow rapidly. 

You can try all these hacks to make good use of the flywheel effect for your business. Tell you what; it works even in the conventional business world, let alone the e-commerce platforms.