Amazon.com, Inc. (NASDAQ:AMZN)’s Dash Program has been a success. Because the retailer has seen the frequency of its order double over the last three months, Amazon is adding dozens of more brands to its Dash system. Soon, you can instantly reorder Pepperidge Farm Goldfish Crackers and Quilted Northern.
Amazon.com, Inc. Adding Brands to Dash Button Program
In April 2015, the firm introduced the Dash Button. This is an Internet-connected device that allows customers to reorder products from brands a part of the program. It makes buying products from Amazon easy and more convenient since you hardly even think about it.
Due to the overwhelming success, Amazon announced Monday that it is adding 50 brands to the Dash program. As the retailer makes the additions, Amazon will now have roughly 150 brands in the Dash Button feature. Some of the new brands include Fiji Water, Cliff Bar, Cascade, V8 Vegetable Juice and Dial Liquid Hand Soap.
Are you now interested in Dash Buttons? Well, they are just $4.99 each, but they’re only available to those who subscribe to Amazon Prime. It should be noted that your first Dash Button is free because members are given a $4.99 credit to their account.
“This year we’ve been focused on rapidly growing the Dash Button program in every dimension,” said Daniel Rausch, director of Amazon Dash, in a statement.
What makes this system interesting is that it’s used more as a marketing gimmick than a product-delivery system, Wall Street analysts say. In order to maintain good relations and close ties to the firm, these brands are signing up for this gadget. If any sales come from it then that’s a bonus for the consumer products.
Moreover, Amazon generates revenue from the buttons by charging brands for their own buttons in addition to receiving a commission from each sale.
So, are the Dash Buttons really as successful as Amazon claims? One report attempts to dispel that idea.
Amazon.com, Inc. Dash Buttons Not as Great as Touted?
Despite Amazon claiming that orders have doubled in the last three months, the Wall Street Journal reports that it’s somewhat untrue.
The newspaper reported Monday that fewer than half of the people who have a Dash Button in their home actually place an order, citing data from retail data firm Slice Intelligence. In fact, those who even make purchases through Dash order a product one every two or three months.
Users may not be entirely infatuated with the buttons because of a few problems. One of them is that they don’t display the price, which can be costly for consumers because online prices are regularly updated by the retailer. The website fights this with text message alerts upon request when a button is pushed.
Even with the ridicule, some think Amazon will ultimately be successful in the end.
“Things can change,” Cot’n Wash Inc. CEO Jonathan Propper told the newspaper. “Look at the categories Amazon created that never existed before, like Kindle. There were people who said no one wanted to read a book off a screen.”
Nevertheless, the firm seems adamant in moving forward with the Dash button. If the data are true then perhaps Amazon is trying to compete with itself through Echo and Tap voice-activated virtual assistants.
Whatever the case, the Dash Button is apparently working. And this isn’t bad for what was initially viewed as nothing more than an April Fool’s Joke.