What is the Amazon flywheel and what can sellers learn from it? 

The Amazon flywheel is widely admired across many companies worldwide.

Due to the huge success of Amazon it is a business strategy that other brands are longing to recreate for themselves. But what actually is Amazon’s Flywheel and what can sellers learn from it?

What is the Amazon Flywheel?

The Amazon flywheel starts with the customer experience. The more of a positive customer experience they provide the more traffic they drive. When the traffic starts to arrive so do sellers looking to benefit from the traffic and with them comes a greater product selection which in turn improves the customer experience, creating the flywheel.

As they have grown in success there are some additions to their flywheel, such as cost structure and lower prices, but all steps in the flywheel work to compliment and push the next, keeping the wheel of success turning for Amazon.

What can sellers learn from the Amazon Flywheel?

The customer should always come first

Everyone wants to be the next Amazon, but to experience success like them you need to think like them. A downfall for many businesses is that they put profit first. Of course, the reason most start a business is to make money, but by putting customers first, Amazon has built up a huge, loyal consumer base.

If a seller ensures that a customer finds their time on product listings easy, or on the brand store easy and informative and they have a good experience, they are more likely to make a return purchase and recommend your products or brand to others. When putting together your ASINs, keep the customer journey in mind, answer their questions, make the listing accessible and do not neglect them once the purchase is made. From consideration to receipt the customer experience should be flawless.

Success is a continuous process

Unlike things that are a flash in the pan, Amazon strives for long-term success with their flywheel. Each step being a continuous objective, which is why it is a flywheel strategy, they want the wheel to continue to spin. Sellers should have the same mentality. If you begin to experience success, make sure your operation is set up in a way that can maintain the level of stock and customer satisfaction that is providing that success. The better you do, the more sales you make, the higher you rank, the better you do and so on. Always be improving listings, keep an eye on your Q & A section and take on feedback in reviews.

Flywheel processes are all linked

A flywheel needs each process to turn effectively, if one piece is missing it won’t spin the same. This is the same for your business strategy, each step is interlinked as important as the step before and the step after. You will need to consider this in yours too, ensuring each stage has equal value and therefore equal attention.

Is an Amazon flywheel easy to manage?

Rome wasn’t built in a day and a flywheel doesn’t become successful overnight. Whatever the steps you include in your flywheel you will need to ensure each is perfected in order to get the wheel turning.

Luckily, there are specialist Amazon agencies Primed (excuse the pun) to assist in getting a business strategy in place and working on it with brands to achieve success. Get in touch with Arthia today to discuss your needs today.


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