That’s why Amazon is successful: the secret sauce is here

Domenico Gagliardi
4 min readMay 26

We are always looking for efficient ways to generate healthy business growth, but it’s not always that easy.

A few days ago, thanks to an Amazon Engineer (Marc-Etienne), I discovered the Amazon Flywheel Concept, and if you don’t know it, you should know it. That’s why!

What is the Amazon Flywheel concept?

Back in 2001, Jeff Bezos penned down the Amazon Flywheel philosophy. Despite its simplicity, this concept has been the guiding principle for Amazon’s success. At its core, the Amazon Flywheel places customer satisfaction as the driving force, rather than immediate profits.

By focusing on providing an exceptional customer experience at competitive prices, Amazon fosters a virtuous cycle that leads to continuous growth and customer loyalty.

The Amazon Flywheel can be visualized as a cycle consisting of two interconnected loops.

The first loop begins with the availability of third-party sellers, which fosters healthy competition and an extensive product selection. This, in turn, enables Amazon to offer lower prices to its customers, resulting in positive customer experiences. Satisfied customers are more inclined to make repeated purchases, thereby attracting more traffic to the platform. The increased traffic, in turn, entices additional third-party sellers to join the ecosystem, leading to overall growth and a stronger marketplace.

The second loop of the Amazon Flywheel revolves around the company’s growth enabling a lower cost structure. As Amazon expands and optimizes its operations, it gains economies of scale and streamlines its processes. These efficiencies translate into lower prices for products, further enhancing the customer experience. The improved experience then reinforces the first loop of the Flywheel, creating a self-sustaining cycle of growth and customer satisfaction.

This powerful strategy has been instrumental in Amazon’s exponential growth over the years. Jeff Bezos, with his unwavering commitment to customer satisfaction, built an empire that extends far beyond e-commerce. Amazon’s influence now spans cloud computing, entertainment…

Domenico Gagliardi

SaaS Entrepreneur | Business Analyst | 5x Exit | Building Products for fun: