The "Amazon Flywheel" is a business strategy concept that refers to the virtuous cycle or feedback loop that drives Amazon's success. It is a system of interconnected elements that work together to drive growth and build momentum, creating a self-reinforcing cycle that keeps accelerating over time.
The flywheel concept describes how various aspects of Amazon's business, such as its vast product selection, low prices, fast and reliable delivery, and excellent customer service, all work together to drive customer satisfaction and loyalty. As customer satisfaction increases, it leads to more traffic and sales on the Amazon platform, which in turn attracts more sellers to the platform, which increases the selection of products and services available to customers. This, in turn, increases customer satisfaction, and the cycle repeats itself, building momentum and driving growth.
The Amazon Flywheel concept is often cited as a key driver of Amazon's success, and many other companies have tried to replicate this strategy to varying degrees of success.