What is the Amazon flywheel effect?

Posted: August 8

It’s all about the flywheel effect. This is why Amazon is so successful.

 

How does the product flywheel look?

 

  • When we have more sales, this leads to more customer reviews.  
  • The reviews get you a better conversion rate. This leads to a better organic ranking.
  • From the better ranking, we have more traffic.
  • More traffic means more profits to improve customer experience, by cutting prices, for example.
  • Better experience leads to more conversions and actual sales.

 

And we start all over again. 

 

We can see that every element from the flywheel is an incremental part of a long-term Amazon strategy. And none of them is less important than the other.

 

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