The amazon flywheel or Amazon Virtuous Cycle is a strategy that leverages customer experience to drive traffic to the platform and third-party sellers. That improves the selections of goods, and Amazon further improves its cost structure so it can decrease prices which spins the flywheel.

More than a tool this is a mindset, a way to seize opportunities within industries, where inefficiencies are the rule.

At the same time, it helps speed up growth by investing as much as possible in customer experience.