Amazon.com, Inc. (NASDAQ:AMZN)’s recently announced Dash program – with buttons that the Internet commerce giant hopes people will soon stick on their kitchen counters, bathroom mirrors and bedroom closets next to products they can buy off of the site – is literally a “sticky” play.
Alex Lirtsman, Ready Set Rocket founding partner, explains to Corey Johnson in an interview on Bloomberg West that Amazon.com, Inc. (NASDAQ:AMZN) wants the products available on its digital storefront – and the services subsequently associated with buying these products – through the company, to be top-of-mind with customers. In other words, it wants the products, and Amazon services, to stick to people’s heads.
This is what makes this interesting Internet Of Things program a “sticky” play for the company, Lirtsman says.
With Amazon.com, Inc. (NASDAQ:AMZN)’s Dash program, buttons which bear product stickers can be stuck on virtually any corner of the house. Each time an associated product is nearly depleted, users press these buttons which registers as an order for the product through Amazon and the product will then be delivered to the homes of customers.
The web commerce giant has a cancelling feature with the program, however, to safeguard from naughty kids going around the house and pushing all of the Dash buttons to place an order. An alert will be sent to users’ phones every time a Dash button in their homes is pressed and they have the option to cancel the order there.
Meanwhile, Lirtsman seems to suggest that it may not matter whether Amazon.com, Inc. (NASDAQ:AMZN) or the partner brands will foot the bill for these Dash buttons as the technology has gone down in cost.
Furthermore, the new program, he says, is “gold” in terms of advertising value as the buttons are marked only with the brands and products associated with them and not with Amazon logos. It’s akin to having an advertisement right in the face of a user when they are using a product which also ensures that people will not consider other products which is often the case when they have to go to a store to pick up a certain merchandize. For Amazon, this ensures that people will be using their services for their replenishements, Lirtsman says.
Ken Griffin’s Citadel Investment Group owned about 1.16 million Amazon.com, Inc. (NASDAQ:AMZN) shares by the end of 4Q2014.
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