What can every sales organization learn from Amazon’s seemingly impossible 42% jump in sales during the final quarter of 2009?

While Amazon has continued to enjoy consistent double-digit growth throughout the recession, it’s fair to say the popular e-retailer’s holiday receipts exceeded all expectations.

Amazon continues to not only maintain, but increase, its already-considerable market share, thanks to a number of shrewd, and often unconventional, selling strategies. Among them:

• Strategic discounts: Amazon’s holiday sales benefitted tremendously from a pricing war with Wal-mart that began in early November. The battle resulted in both companies dramatically slashing prices on some of the season’s most popular items. But Amazon came out ahead of the curve, as consumers who were attracted to the site by one highly-discounted item kept shopping and purchased several other items at regular price.
• Streamlined check-out: A lot of companies use the online checkout process as a way to gain as much info about customers as possible. The reality is that approach costs companies a ton of customers. Research shows the more steps involved in the checkout process (or info customers are asked to provide), the less chance there is customers will complete the process. Amazon simplified its process so new buyers only have to provide the absolute essentials — and repeat buyers aren’t asked to provide the same info more than once.
• Free shipping: Shipping costs (especially excessive ones) are the bane of online buyers’ existence. While they enjoy the convenience of shopping from their living rooms, excess shipping is enough to make them hold off and simply pick up the item(s) they want next time they’re out. Amazon eliminated that obstacle by waiving shipping on many of its items. And while a lot of companies don’t have the freedom to offer free shipping, it may be just as valuable to increase volume per sale by offering reduced shipping rates on bundled items or high-volume purchases.
• Product suggestions: More than 70% of Amazon’s profits were due to product suggestions last year (i.e., the site — or other consumers — suggesting items based on past buying history or common interests, etc.). During the busy holiday season, when people are eager to find creative gift ideas, those suggestions translate into major revenue. It’s an online resource that almost any company can use to cross-sell or up-sell ancillary products.

What are some ways you can put these selling strategies to work at your company? Let us know in the Comments Box below.

Info: “Amazon’s Holiday Sales Buoyed Profit,” New York Times, 1/29/10

Tags: Amazon, economy, Recession, retail, sales, Wal-Mart