The Amazon Dash Button

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Amazon Dash is a tab consumers can attach to their walls or appliances to ensure they never run out of daily household items. Its convenience shopping that’s efficient. Amazon Dash will have the brand name with a button to press anytime a particular product is running low. When pressed it connects to Amazon via Bluetooth to order a new supply shipped to your house within a couple of days. Amazon Prime Members will get the benefit of free shipping and the dash button has a magnet strip for the shopper to place on their fridge, washing machine, or other appliances around the house. The button is real and Amazon is working with many different companies on developing devices that can restock themselves. For example, water purifiers will have the technology to reorder their own filters and washer and dryers will soon be able to sense when supplies are running low to order more detergent without you doing anything.

Is greater convenience for households always better? Automated systems have started to appear in hospitals for dispensing medication. It helps with accuracy and farmers are monitoring crops in real time because it aids with delivering precise water to reduce waste. However, is improved technology for common household supplies too convenient? Privacy concerns have already been raised because marketers will have more data to analyze allowing them to better understand consumer’s decision-making process. For the dash button to work Wi-Fi connection is needed and typically laundry rooms, kitchens, and bathrooms are the areas where the connection has the most problems. There are also questions regarding the battery life of Amazon Dash where it’s more than likely the consumer will one day press the button and keep pressing it because there is no confirmation.

With just a push of the button consumers can order Amazon products without going to their website or app. Whirlpool, Gatorade, Bounty, Tide, and Brita are the big names participating in the program starting this fall. After pressing the button users will receive a confirmation through the smartphone to continue with the order or cancel. Amazon Prime Members will receive email invitations to experiment with the Dash Button and have a limit of three devices per household. The buttons will automatically link to your Amazon account product specific with the amount you want delivered per click. The Dash button works well for consumers that purchase items in a set amount. Purchasing the same amount every time and having it delivered a couple of days later can lead to better efficiency. However, if this becomes a popular trend new brands that are better will lose sales. Customers may not be aware of them because they keep ordering their old favorites with their Amazon Dash.

The Reasons Behind The Growing Popularity In Amazon Prime

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Bundled cable and satellite television subscriptions have been declining in numbers but not for Amazon.  Amazon Prime subscriptions are up 53% in 2014.  Even with the annual subscription fee raised to $99 from $79 many think it’s still a great deal.  Amazon prime is similar to Netflix with regard to streaming television.  Both offer a variety of TV shows, movies, and documentaries that their competition lacks.  However, the lure to Amazon prime is the free 2-day shipping for customers on the Amazon.com website for most products.  Amazon is already known for offering products online at a fair price.  Amazon wants to build a loyal customer base by offering advantages to Prime subscribers that non-subscribers don’t have.  The goal is to have the loyal subscribers spend two or three times more on Amazon.com products.  Aside from the two-day shipping Amazon Prime members have over 40,000 choices for TV shows and movies, unlimited music streaming that’s ad-free, photo storage on Amazon cloud drive, and opportunity to read over 50,000 e-books.

Amazon has been criticized in the past for not showing enough profits when they report their earnings, but the reason why is because they reinvest most of the profits back into the company to make their operations more efficient.   Reinvesting back into your company will provide a competitive advantage over your competition.  Amazon’s bottom line is finally showing results and their competition understands what a growing subscription base means for Amazon.  Prime subscribers may not have much reason to shop around as much because of the advantage of delivery costs.  Free two-day shipping for most products, competitive prices, and solid reputation signals trouble for everyone else competing against Amazon.  A report by ComScore suggested, “Prime members make twice as many purchases as nonmembers and spend 40% more per transaction.”  It is estimated about 40 million people have Amazon Prime memberships up from about 29 million in September.  For the ones that shop frequently on Amazon.com it’s to your advantage to purchase Amazon Prime to make your shopping more cost efficient…