Amazon Dashes to the On-Demand Economy

January 22nd, 2017     by ddeal    

Sometimes change wears an awkward smile. When Amazon launched Dash buttons for instant re-ordering of products in 2015, the idea seemed so goofy that some considered the announcement to be an April Fool’s Day joke. Amazon actually expected people to affix WiFi-enabled hardware devices to any object in our homes so that we could restock on diapers and detergent with the simple touch of a button?

But Amazon was deadly serious. The Dash buttons, available to Amazon Prime members, have taken off. According to Amazon, Dash button orders occur over twice a minute, and for many popular items, more than half of orders are done via Dash buttons. The list of brands signing up for the program include Campbell’s Soup, Cascade, Clif Bar, Mentos, and Quilted Northern, to name but a few. All told, more than 200 Dash buttons exist. They give consumers convenience; and for brands, revenue and access to consumer purchase data.

As it turns out, people find it useful to turn their appliances into smart objects. For instance, if you place a Tide Dash button on your laundry machine, you make it easier to restock on detergent at the precise moment when you realize you are running low, presumably when you are doing laundry with the machine nearby. All you need to do is click on the Dash button, which triggers the instant order. No muss, no fuss, no online shopping cart.

On January 20, Amazon officially expanded the use of Dash buttons on the Amazon home page. (Note the irony here: a business that started as an online retailer launched a physical product and brings it to the online world). You can create your virtual Dash button by choosing an “Add to Your Dash buttons” option on a product’s detail page — but Amazon is also creating them automatically for products you order often or have ordered recently. The buttons are available for both desktop and (more importantly) mobile use — thus turning your mobile phone into an all-purpose dash button.

The Dash buttons are succeeding because Amazon has tapped into a broader trend toward on-demand shopping and living. Uber famously triggered the advent of the on-demand economy with its convenient app that made traditional taxi services look antiquated. Now businesses ranging from Nordstrom to Walmart have been incorporating apps, drones, ride-sharing services, and other forms of on-demand ordering and delivering. According to the Harvard Business Review, the on-demand economy generates $57.6 billion and attracts 22 million consumers annually.

And mobile is crucial to the uptake of on-demand living.  Since 2013, consumers have preferred using their mobile devices over laptops and desktops to interact with retailers online. As Google has reported, we are increasingly using our mobile devices to decide what to do, where to go, and what to buy — and in on-demand fashion. For instance, half of consumers who conduct a local search on their smartphones visit a store within 24 hours.

Google calls these moments of instant decision making “micro-moments.” Amazon intends to capture its share of those micro-moments by making it easier to order products with our phones, which is where Dash buttons on our mobile phones come into play.

Apps such as Instagram and Pinterest have incorporated their own equivalent of Dash buttons, but none of succeeded like Amazon has. Why? Because Amazon had already established itself first as a strong product discovery shopping platform long before incorporating the Dash buttons. And it took years for Amazon to ingratiate itself into our buying habits. The Dash buttons would come later.

Amazon patiently embedded itself into our everyday routines by becoming a user-friendly platform for finding and buying things on our own terms. Dash buttons are just part of its strategy for making shopping an even more natural part of our lives:

  • Dash buttons on our laptops and home appliances for ordering via touch.
  • Alexa in Amazon Echo, automobiles, and phones for ordering via voice.

With Dash — and the much bigger Alexa — Amazon is leading the uptake of the on-demand economy everywhere through natural actions such as clicking and talking. No longer is Amazon a retail engine. It’s a lifestyle brand for the on-demand economy.

Related:

Why Voice Search Is the Future of the On-Demand Economy,” June 14, 2016.

This Is the World Uber Has Made,” June 7, 2016.

Welcome to a New Era of Convenience Shopping,” June 29, 2015.

 


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