When starting a retail business, it is obvious that focusing on product or service line-up will help you draw customers attention, but that’s not enough! A good idea and knowledge from experienced experts is a must before you consider running an online venture and will surely help you make better-decisions for your retail store.
When asked to many entrepreneurs whom do they follow the most, the names that came up are: Steve Jobs, Marc Zuckerberg, and some even mentioned Bill Gates. Unfortunately they aren’t many who mentioned Jeff Bezos, founder and CEO of Amazon.
Jeff Bezos may be one of the underrated CEO’s in the tech sector, but let me tell you he is the man behind Amazon’s success. With an wide experience and immense knowledge, today Jeff Bezos is known for his clear-sighted leadership approach, an attribute that saw him successfully pitch his startup company “Amazon.com.” Just four years after Mr. Bezos created Amazon.com, the online bookstore became a guide for how e-commerce business should be dealt, with sales of more than $610 million and more than 13 million customers worldwide.
Read on to learn 5 of his best business philosophies.
1 – Infuse customer service with everyone at your workplace
Bezos once said “If you make customers happy in the physical world, they might each tell to six friends on an average, but if you make customers happy online, the can each tell to 6,000.” Since Amazon.com was found in 1994, the company has mainly focused on customer service which has brought Jeff Bezos a long way, and hasn’t changed a bit. Jeff Bezos has a rigid mission to be the Earth’s most customer-centric company, and its practices consistently deliver on that mission.
The lesson is saying, as a business owner you should infuse the importance of customer service with everyone at your workplace. Many companies follow a common philosophy of training maybe one or two employees for customer support, but that is not enough, instead train every employee of your company to listen, understand and act according to customers need.
2 – Be flexible in your shipping guidelines
The cost of shipping influences purchase-decisions, that stop customers from ordering online. Amazon runs a “super saving shipping” strategy offering free shipping on all orders above $25. Company that operates on low-margin like Amazon can do it profitability why can’t you? All you need to math on this and increase the $25 threshold. Another great philosophy by Jeff Bezos was offering a free monthly/yearly shipping plan. Customer pays $79 a year, receive two- free shipping on any order size and also benefits unlimited movies and TV shows on Prime instant video. Following this math, even if a customer makes small orders a year the math will be favorable.
Keep on experimenting and measure it and if the result does not work for you, that doesn’t mean you shouldn’t try. Try and be flexible in your shipping guidelines as the above two mentioned shipping offers by Jeff Bezos did not prove to be good for short-term but it surely paid-off in long run, increasing customer loyalty that brought higher frequency of orders.
3 – Don’t be afraid to invent
If you think of being successful in the retail world, sticking to the same product line is not a good idea. If you are a retail entrepreneur, no matter what product line or service you offer, you’ll have to make yourself curious into inventing and building new ideas. Have you ever noticed the product line of Amazon, at the bottom of the page you can see a wide-range of product and service they offer.
Mr. Bezos is an inventor himself – his “Blue Origin” space company, his patented airbag system for phones, or his struggle with Amazon, he loves to invent, and follow it till date! The lesson is not to be afraid in inventing things, this will not only help you explore new opportunities but also makes your product line look much better.
4 – Consider long-term benefits
Jeff Bezos truly believes in long-term benefits as discussed in #2 with the example of $25 super shipping saving. Focusing on one near-term benefit is not a bad idea, but as an entrepreneur when you think of starting an online business you want it to go a long-way, then why not think on working ways that will bring you good-days in long run. Jeff Bezos once said “If we think long term, we can accomplish things that we couldn’t otherwise accomplish.”
Bring out your innovations and think on strategies that may not reap much benefits on-the-go but make wonders in long-run!
5 – Always be stubborn but at the same time flexible too
As an owner you may be the “leader,” inheriting thoughts and have things done your way. But, let me tell sticking to your point is good but not being flexible can harm your business. Jeff Bezos the one-man show who built a company from 0 employees to over 1,00,000 employee’s says, “We are stubborn on vision, but flexible on details.” So, the lesson to you as an entrepreneur – sticking to your vision is important but being flexible with other tactics is more important for the success of your retail store.