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Amazon Expands Dash Program With New Partners, Unveils SDK

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Amazon.com Inc. (AMZN - Free Report) is coming up with innovative ways to keep users hooked on to its products. Given that customers these days look for convenience when it comes to shopping, Amazon is taking every possible step to ensure that.

The company recently announced that it has added four new device makers to the Amazon Dash Replenishment program, namely HP, Kenmore, 3M’s Filtrete brand, Epson, and Blustream.

That’s not all. The e-commerce giant also announced the Virtual Dash Button Service (VDBS), a software development (SDK) kit. This kit allows third parties to add software-based reordering to screened devices instead of the physical Dash button play used previously, making it easier for brands to implement virtual versions of Amazon Dash Buttons on their connected devices.

The SDK could be a great move by the company as it will expand the reach of its Dash program to many more screened devices, thereby increasing the number of reorder supplies.

On a 12-month basis, Amazon has underperformed the industry it belongs to. The company’s shares have gained 56.9% compared with the industry’s growth of 59.3%.

What is Dash Replenishment Program?

This program enables connected devices to automatically order physical goods from Amazon when supplies are running low.

This is a Prime-exclusive press-to-buy service. 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 on time. All it needs is a Wi-Fi connection.

Our Take

Amazon has been focusing more on the platform approach. The company has attained the position of a top retailing platform where it acquires goods at a wholesale price and then retails them.

It has the resources to drive out middlemen, who offer more to producers and also keep higher margins for themselves. Its push into groceries is intended to have a similar effect and programs such as Dash will add more loyal customers to Amazon.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus | Amazon.com, Inc. Quote

Zacks Rank and Stocks to Consider

Amazon currently carries at a Zacks Rank #3 (Hold).A few better-ranked stocks in the broader technology sector are PetMed Express, Inc. , SMART Global Holdings, Inc. (SGH - Free Report) and Applied Materials, Inc. (AMAT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings per share growth rate for PetMed Express, SMART Global and Applied Materials is projected to be 10%, 15% and 12.7%, respectively.

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