Secret of Amazon's Market-Beating Success?

Techflash reports this week that Amazon.com posted a 9 percent net income gain in it's Q4 results. Despite current economic situation, Amazon.com is booming.

I buy a lot of stuff through Amazon, mainly because I like the user experience. I find the buying experience better than anything else out there, bricks or mortar. If I recall, Amazon utilize a Darwinian system of serving differing website versions simultaneously. I would love clarification, if anyone has a link.

Apple also reported significantly improved profit up from the same quarter last year.

Is this a trend? I'd love to hear more examples, if you know them, of user experience focussed companies bucking the downward trend.

Comments

[Jessica Enders]

Hi Keith

Sorry, it's me again! Just thought I'd put in my 2 cents on why Amazon is so popular.

I predominantly buy books from Amazon. For me personally, it is a great place to shop because I know the chance is very good that I'll find what I want there. If it's not on Amazon, it's reasonably rare.

Also, they were the first I came across with Wishlist functionality and now that my list is there, I return there frequently. It's all related though - I wouldn't have my Wishlist there if they didn't have so much stock that I could include everything I've ever wanted.

Cheers
Jessica

[Keith Lang]

Thanks Jessica for Sharing your insights.

It's a great point — like Apple, Amazon.com have a strategy of offering you convenience in exchange for you sharing as much information about your tastes as possible. In Apple's case, the iTunes application gives people a reasonably good (but not brilliant) music player for free, which lets them organize their own CD-ripped music at no cost. Playlists, playback and browsing habits are all noted.

Amazon Wishlists do a similar thing very successfully, which ties you in some way to them as a matter of convenience, and as they are able to offer much more targeted advertising.

I find the Ads from amazon.com so targeted that I actually like them! The "suggestions" are that good.