Imagine you have a hard task to do. There is a huge wheel you need to set into motion. You have no idea how to do it, but you are full of enthusiasm and see your goal. So you try to push the wheel. It is quite heavy, so you get tired. At the same time, you can see that you are no closer to your goal – the wheel is not moving by itself. So you keep pushing, and trying, and sweating.
As the result of your titanic effort, the wheel rotates for the first time. After a few hours of work, you see another rotation. Days and weeks pass, and you notice that the wheel is starting to rotate. You feel relief: finally, here are the results of your work! This relief is not a reason to stop, but the motivation to keep on working. After a great amount of time, the wheel is rotating and speeding up. The acceleration is obvious, and you can enjoy the results of your work. Here you are: the wheel is rotating, the motion is accelerating, and this is exactly what you have wanted to achieve.
Let us now apply this model to the business core. We believe that every entrepreneur reading this article has felt this way at least once. If you want to start your own business in any industry, your task is as hard as making a huge wheel rotate. However, persistent hard work can lead you to success.
This philosophy is what leads to huge successful enterprises. The Amazon flywheel strategy is the legend of the eCommerce world. Their persistent work brought great achievements and millions of customers worldwide.
The Introduction to Amazon Flywheel
The Amazon flywheel model is a business strategy where the business processes are presented as a huge wheel. Running a successful business is like getting this wheel into accelerated motion.
At the beginning, the movement is close to zero. No obvious changes or positive tendencies are visible during the first months of work. But the efforts of the startup owner or the CEO can take the business to the desired results. In the first stages, the achievements are tiny and slow.
But each of these small components has a great potential to influence future positive results. Here is where the analogy with the momentum of rotational movement comes in. Every rotation contributes to the momentum and speed of the movement in the future. Every step the business owner takes contributes to the business success.
To sum up: in an Amazon virtuous flywheel, all the small results are aligned in the same direction, which makes positive shifts quite possible.
How Does the Amazon Virtuous Cycle Look Like?
The flywheel effect by Amazon has a main component called the virtuous cycle, which is focused on UX mainly. The prime goal of each Amazon specialist is the improvement of the customer experience.
The system is reasonable, and the vision is quite clear: better experience leads to an increase in the number of visitors. The more people visit Amazon, the more that convert into real customers. And each customer means real profit to the company.
Let’s also take a look at it from another point of view. The more shoppers come to the website, the more sellers join the platform to provide them with products and services. A great number of vendors can decrease the prices on the market. And as you know, customers love lower prices, so they will keep coming back to the chosen platform. In such a way, the cycle repeats itself over and over again.
3 Cornerstones of Amazon Flywheel
The Amazon flywheel business model is a concept every entrepreneur would love to implement into their project. The reason is simple: the level of sales reached by Amazon is colossal. With no exaggeration, they are the most successful eCommerce corporation. The profit of Amazon inspires and pushes to action. Here is why this concept could be useful for you:
- Safe from the very beginning
Let us go back to the wheel we discussed above. As you know, the risks are quite small at the beginning of the rotation. The person responsible for continuous rotations controls the process completely. No doubt, the wheel is quite big and heavy, but it moves at a speed that is quite easy to manage.
The situation is nearly the same as when you are starting a business. It is difficult; it requires time, effort, money and attention. However, you are the only one who controls the process. At the same time, you can hire people who can help you with that. You have enough time to develop your idea, you have some resources, and you make things work for you. Although every entrepreneur faces some risks, initially you have complete control in your own hands.
- Teamwork and communication
Rotating a wheel is more difficult if you are doing it alone. But when reliable assistants come by, it would be a mistake not to use their help.
The same can be said about business processes. At the starting point, you can choose the team to work with. Take into account both their soft and hard skills to find out if the specialist is good enough to join you on the road to the stars. Here, frank conversations and trustworthy relations from the very beginning are of utmost importance. You have to share your thoughts, describe your vision, and define further steps to make your wheel rotate, and your business run.
- The alignment of the processes
You need to focus on the desired result when trying to make your wheel rotate. Pointless random efforts will take you nowhere. Outline what you want to get, think about it over and over again, and you will avoid pitfalls and hollows.
Do not waste your energy without reason. Every step you take in your business has to be estimated and balanced. Running a business is still the same as rotating a wheel. But here, thoughtful actions are even more significant. Set up the process following the best and smartest tips and watch your business grow at the speed of light. Or at least, at a speed higher than yesterday.
Amazon’s experience looks impressive and scary at the same time. We know how risky it seems to start implementing this strategy and making the wheel rotate!
The AMZ-Expert company has years of experience working with various eCommerce strategies and offering consulting to our customers. We know a lot about Amazon and the approach described in this article, and we can’t wait to share our knowledge with you! Contact us in order to bring your results higher. Be proud of the business of your life!