Initially, the announcement of the Dash push-button service by Amazon.com, Inc. (AMZN - Free Report) was taken by many to be an April Fool’s joke. But it has emerged as 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.
The company announced yesterday that it has included four new device makers to the Amazon Dash Replenishment program namely Honeywell, Nestle, GeniCan and WePlenish.
The company also announced two new dash-enabled devices, PUR Ultimate Faucet Filtration System and the Whirlpool Smart Dishwasher.
The Automatic Reordering Magic
People are always looking for convenience these days and Amazon is there to take care of it when it comes to shopping.
This Prime-exclusive press-to-buy service currently offers more than 150 brands. There are small wireless devices each with a button and linked to a particular product. Users can keep them anywhere in their homes and press one to get automatically place orders. The product reaches the customer in time. All it needs is a Wi-Fi connection.
Coming to the newly announced Dash products, Genican installs easily in garbage cans or recycle bins and will allow customers to order household or office items through voice recognition or barcode scanning.
Similarly, Honeywell’s connected devices will automatically reorder a new air filter when needed while Nestle’s Wi-Fi enabled BabyNes system and WePlenish’s Java stores will do that with formula capsules and coffee, respectively.
As far as the new Dash devices are concerned, PUR’s new Bluetooth enabled faucet filtration system automatically orders replacement filters when required. Starting December, the new Whirlpool Smart Dishwasher will do the same in case of dishwasher detergent.
AMAZON.COM INC Price
Amazon has been increasing its focus on the platform approach. The company has built its position as a top retailing platform where it acquires goods at a wholesale price and sells it in retail.
It has the resources to drive out middlemen, who would offer more to producers and also keep higher margins for themselves. Its push into groceries is intended to have a similar effect and programs like Dash will add more loyal customers to Amazon.
Zacks Rank & Stocks to Consider
Currently, Amazon has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader technology sector include NVIDIA Corporation (NVDA - Free Report) , Kimball Electronics, Inc. (KE - Free Report) and Control4 Corporation (CTRL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
For the current year, the consensus estimate for NVIDIA has increased 33.3% in the past 30 days. Estimates for Kimball Electronics and Control4 have gone up by 8.1% and 10%, respectively, over the same time frame.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>