The majority of the global customer base today is shopping
online. Retail eCommerce sales grew 27.6% worldwide to be worth $4.28 trillion in 2020. eCommerce business
is undoubtedly a vast domain where there is always something new to learn. With
that in mind, taking a look at the journey and eCommerce business strategies of
some of the biggest eCommerce business tycoons is one of the best ways to
imbibe valuable lessons.
While every company undergoes a learning curve in running an
online store, some of these tycoons have walked the treacherous path and built
the best eCommerce companies in the world. These strategies can help you
weather any kind of storm in this fast-growing industry.
1. Customer Obsession
– Jeff Bezos (Amazon)
Amazon has dominated the eCommerce business landscape for quite
a while now. The success of this eCommerce giant boils down to establishing and
adhering to core values since inception. Jeff Bezos launched the company in
1995, intending to be Earth’s most customer-centric company — a principle
that the brand has followed rigorously to date.
The result?
Amazon maintains a consistent 90% customer retention
rate through tailor-made user experiences. Bezos obsesses
over satisfying his customers beyond the textbook definition. You can use this
strategy by putting the complete focus on your customers and building backwards.
One such way is to be inventive about the benefits and products that you offer
to your customers.
2. Prioritize Company
Culture – Tony Hsieh (Zappos)
Hsieh built a strong brand over a long period. He focused on
establishing the right culture throughout the journey, which
emphasized always hiring the right people. During the hiring process, the
company goes to great lengths to ensure that the candidates are the right fit
not just by their qualifications but also culturally.
It is that simple. Hsieh figured out that people;
Don’t like the feeling that they have lost control,
Need assurance that they are making progress,
Love strong social ties, and
Are motivated by the vision of being a part of something
bigger than themselves.
Economists also observe that companies with happy
employees earn 1.2 to 1.7% and more than
their peer firms. Keeping these factors in mind makes Zappos a happy place with
happy employees that inevitably translates to happy customers.
3. Tackle Problems as
They Arise – Brent Bellm (BigCommerce)
According to Bellm, leadership in the eCommerce business
realm is all about solving problems on the go. This includes pursuing
opportunities when you see them. You should refrain from admiring, tolerating,
or ignoring the issues at hand. Instead, face them head-on by leading with a
driven problem-solving approach.
Similarly, you should take advantage of the opportunities
and eCommerce business strategies. Set ambitious yet realistic goals like
elevating sales, efficient merchant acquisition, and timely order fulfilment. A target-driven approach sets your eCommerce
company for success. Bellm believes you see actual accomplishments when you hit
the goal or get as close to it as humanly possible.
4. Humanize eCommerce
– Hiroshi “Mickey” Mikitani (Rakuten)
Rakuten has grown exponentially since its initial years.
Mickey, the founder of Rakuten, attributes this success to the personalized
approach of the brand. Rakuten integrates people’s need for connection, even if
it is through computer screens, for a rich shopping experience. The principle
is that you should focus on delivering high-quality customer service and
hospitality for a personalized approach.
Mickey wanted to create a baaar-like experience, where the small shop owners could curate their
merchandise and interact with their customers. Rakuten works on a hybrid
approach by combining humans plus algorithms to drive recommendations. As a
result, customers are met with a pleasant experience when they liaise with the
merchant for humanized recommendations.
5. Be Picky and
Patient – Josh Silverman (Etsy)
This pertains to the merger and acquisition strategies
followed by Etsy. Josh joined Etsy as CEO in 2017 and worked relentlessly to
pace up the Gross Merchandise Value (GMV) and recover from the ballooning
expenses. He built a house of brands by acquiring niche marketplaces that can
add millions of GMV annually.
The acquisition strategies brought in vertical and
geographic expansion in their portfolios. With DePop, the company taps into the
Gen Z demographic, and Reverb assures a top spot in the trade of musical
instruments. What’s more, Etsy acquired a Brazilian brand for handmade
products, Elo7, furthering its geographical prowess. The takeaway is simply
choosing the right online marketplace niches can make or break your eCommerce
business.
6. Think Big and
Never Give Up – Jack Ma (Alibaba)
This list can not end without including this legend. Jack Ma
is a cornucopia of lessons, be it the eCommerce business arena or life in
general. Ma personifies the idea of hard work and quickly demonstrates the
real-life outcomes of perseverance.
His early days were filled with challenges which he overcame
by integrating experimentation and determination. His vision, even then,
was to make Alibaba the number one eCommerce platform in the world. He secured
huge investments and carried out the transformation of Alibaba’s IPO.
More importantly, Ma did not limit himself to Alibaba. He
established Yunfeng Capital in 2010, which invested in several different sectors
and industries. He imparted his guidance, wisdom, and ideas to push
various companies in the right direction. You should insist on scaling your business
online as eCommerce has a long way to go, and you can make the most of
it.
Summing Up
The leading eCommerce tycoons have paved the way for you.
The bottom line of any business is to deliver results that satisfy the
customers.
While there are many ways to go about it, some of the
lessons to learn in eCommerce tycoons include: customizing user experience,
teaching a winning company culture, finding solutions to obstacles, expanding
tactfully, and above all, consistently being persistent.
It is time for budding eCommerce companies to take their
efforts a notch to leverage the market opportunities. An intelligent approach
would include strategically planning the growth of your online store and making
minor changes to implement these ideas. Consistently testing and making
positive changes can offer highly effective outcomes over time.
