It’s no surprise that America’s largest online retailer acquired Woot! this week — Amazon has an eye for culture.
Woot!, the irreverent retail site that sells one item per day (with shirt.woot, wine.woot, kids.woot, and sellout.woot spinoffs) is an e-tail wonder. Despite it’s limited selection, the site has been recognized as one of the fastest growing private retailers in the US.
Woot’s success is built on a foundation of scarcity and culture.
Scarcity is a powerful marketing tactic. It triggers consumers to react.Everyone is looking for a ‘one of a kind’ deal and Woot delivers them daily without disappointment. In fact, I was on the site purchasing a $99 iPod Nano for my daughter when I learned about Amazon’s same-day buyout:
“To be uncharacteristically serious for half a nanosecond, yes, Woot has signed an agreement to be acquired by Amazon,” Woot announced. “You see, when two companies meet over drinks and some light jazz and decide they’d like to get to know each other better…”
Like Zappos before it, Woot! attracted Amazon with its ability to sell ordinary merchandise in extraordinary ways by leveraging the company’s culture. When it purchased Zappos, Amazon invested in the company’s unparallelled commitment to customer service. By purchasing Woot!, Amazon is investing in the company’s unique ability to transform retail into theatre.
Product descriptions on Woot! are as attractive as the offers themselves. A recent ad for an new Amazon Kindle (coincidence?) begins: “Step Into The Trunk Of My Car: Yeah, yeah, that’s the real price for a real Kindle. It’s not a typo or a knockoff or some Russian credit-card scam – just a Woot exclusive deal. But, y’know, hurry it up, willya?”
Amazon may be the largest online retailer — but it remains a retailer with little personality. Acquiring heavy hitters in culture-driven commerce like Audible, Zappos and Woot! are a good tactic for growth. The road to growth for Amazon has more to do with its culture than with its product offerings. Culture is one of the most important and overlooked aspects of any business in a competitive industry – especially retail.
Credits: Artwork is courtesy of Hugh McLeod of GapingVoid.com.
It’s a Wrap, Rap
Microphone check, one two. Mortimer kicks the funky k-nowledge regarding Woot’s acquisition:
About Troy Janisch
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