Amazon.com Inc. was in the news two months ago when it announced that it wanted to open a real life store in your home with its Dash Buttons. The Dash Buttons are small Wi-Fi connected devices that can allow you to make one-touch orders for necessary items as soon as you remember their needs. Hence, if you have a Dash Button for an item, say milk on your fridge, you can press the button to order milk when you are running low instead of making a mental note and then forgetting all about the milk.
Amazon first announced dash buttons about five months ago before it rolled out the beta testing in July. When Dash Buttons were launched in July the firm said it already had brands have signed up to have Dash Buttons for their products. Such brands include Izze, Kraft Mac & Cheese, Bounty, Glad, Clorox, Gatorade, Tide, Cottonelle, Maxwell House, smartwater, , Larabar, , Gerber, Huggies, Wellness, Olay, Gillette, and L’Oreal.
Dash Buttons are now free and more brands are on board
When Amazon introduced Dash Buttons in July, the market was largely indifferent to those cute buttons because there brought only a “marginal” improvement to the retail sector. In the last two months, they’ve become more accepted as reviews highlight the value of the buttons.
However, the fact that you must be an Amazon Prime member and that you’ll pay $4.99 for every Dash Button you need doesn’t really make much sense in the retail point of view. Amazon wants to ensure that consumers buy items from its stores with Dash Buttons and it expects them to buy Dash Buttons in order to buy more items.
Amazon seems to have rethought its strategy and you won’t need to buy the Dash Boards again. You’ll still need to be on Amazon Prime and you’ll need to pay that $4.99 price tag to order to Dash Button. However, Amazon will return that $4.99 to you after you place your first order and you can apply it to other orders.
Amazon has also expanded the number of brands that offer Dash Buttons for their products. The firm says 29 different brands; representing over 500 products now have Dash Buttons for consumers. In a statement, Amazon said, “we are being thoughtful as we scale the program and we’re focused on increasing the breadth of the categories for customers.”
Amazon is the king of retail
When Amazon introduced the Dash Buttons, it appeared as novel sales gimmick that won’t find traction. Now Daniel Rausch, Amazon’s director of product management says, “It’s not an experiment anymore… This announcement is really a sign that it’s working and we’ll continue to scale and grow it”.
The introduction of the Dash Button will surely increase sales on Amazon because people won’t need to rush down to local brick and mortal stores when they run out of everyday items suddenly. It also appears that Amazon is getting a massive paycheck from brands before it adds them to the Dash Button program. Michael Stich, chief innovation officer of WPP digital agency Rockfish says brands were asked to pay as much as $100,000 to participate in the program.