Amazon.com Inc. (NASDAQ:AMZN) has been making billions of dollars as the world's largest online retailer. Some might think that Amazon has been making so much money that it's practically coming out of nowhere - or that some of the money is appearing out of thin air. Before, it only seemed so - but now Amazon says it will be producing money out of thin air coming up in a couple of months.
Tuesday morning, Amazon.com Inc. (NASDAQ:AMZN) reported that in May it will be releasing a virtual currency called Amazon Coins, which may be a competitor to Credits, a virtual currency introduced recently by Facebook Inc. (NASDAQ:FB) for use on its own site. With Amazon Coins, shoppers will be able to buy apps, games and in-app items for Kindle Fire devices from the Amazon Appstore.
To kick this off, Amazon said it will make it rain. Amazon.com Inc. (NASDAQ:AMZN) announced that it would start putting this currency in circulation by offering "tens of millions of dollars worth" of Amazon Coins to shoppers for free, and shoppers can then buy Coins from their existing Amazon accounts. Those current app developers in the Appstore will be able to take advantage of this, as the company reports that developers are getting better conversion rates on Amazon than on other platforms; and with Coins, Amazon would expect more attention for developers and their apps. Amazon would still retain 30 percent of app purchase revenue. Developers who want to get in on this must have their apps approved by April 25.
"We've already found that the average revenue per user on Amazon is higher than other Android platforms," said Keith Shepherd of Imangi Studios. "We're very excited about the monetization opportunity with Amazon's new virtual currency."
What do you think about this new concept by Amazon.com Inc. (NASDAQ:AMZN)?Are you an Amazon shopper, and would a virtual currency affect your shopping? In a good or bad way? We'd like your thoughts in the comments section below.
DISCLOSURE: I own no positions in any stock mentioned.
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