The 80:20 rule is oft bandied around in the retail world and Amazon, not content with disrupting numerous retail industries and the very way we shop have even taken an established business saying and turned it on its head.
Amazon uses the 80:20 rule to demonstrate their approach to product decision making – they base selections 80% on data and 20% on experience and gut feel, whereas traditionally decisions in retail are entirely the other way around, with 20% being based on data and 80% on gut feel.
No-one can argue that the 80:20 model isn’t working well for Amazon as the company announced a near doubling of their profits for the first quarter of 2019 as it continues its expansion into new categories by using the data they generate from selling 3d party products.
Continue reading… “Amazon – Redefining the 80:20 rule”
