When the concept of a Dash push-button service was announced, many believed it to be an April Fool’s joke. But Amazon.com, Inc. (AMZN - Free Report) intended it to be a way to keep users hooked on to its products. The company has been taking on its competitors with this concept, especially the brick-and-mortar stores, since Apr 2015.
Now, Amazon is planning to add a dozen more of its dash buttons, according to the Wall Street Journal.
This Prime-exclusive press-to-buy service currently offers more than 100 brands. There are small wireless devices each with a button and linked to a particular product. You can keep them anywhere in your home and press one to get your order automatically placed and the product reaches your home in time. All you need is a Wi-Fi connection.
The service mainly covers household essentials that customers can re-order easily with just a touch of a button. Though the company charges $4.99 for each dash button, it’s actually free as Amazon gives a credit for $4.99 after the first purchase.
What’s Behind the Move?
We are always looking for convenience in our hectic lifestyle and Amazon is there to take care of it when this comes to shopping.
According to some estimates, Amazon Dash buttons are still not as popular as expected and apparently, consumer response hasn’t been spectacular. But that’s probably not going to deter Amazon because it alone is in possession of the customer data that it holds pretty close to the vest.
First Mover Advantage
Amazon is relatively unchallenged in the button based e-commerce space. It has secured partnerships with big suppliers such as The Procter & Gamble Company (PG - Free Report) , Pepsico, Inc. (PEP - Free Report) and Kimberly-Clark Corporation (KMB - Free Report) .
However, Israel-based startup Kwik is expected to launch its own button service and is collaborating with the likes of Domino’s, Huggies and Budweiser.
Amazon’s officials have declined to comment.
Currently, Amazon is a Zacks Rank #3 (Hold) stock.
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