The Internet of Things just came one step closer thanks to Amazon. The news that Amazon was testing a replenishment service called Dash last week was thought to be an April Fool’s joke by some, but Dash is no joke. For many brands Dash presents a way to lock in purchasers who might otherwise feel free to shop around.
Competitive pricing, speedy service, and Amazon Prime has locked huge numbers of people into using Amazon for a huge range of goods they might otherwise buy in a bricks and mortar store. Convenience is now the name of the game, and Amazon’s Dash just leveraged that advantage to the full. No need to go to the computer, tablet or smartphone; just press that little button, and two days later your order will arrive.
Right now Dash is only available to select Amazon Prime users, with each customer getting three of the buttons, but I believe the test is going to be a success.I believe that the sheer convenience of being able to order stuff on-the-fly is going to win out. Dash is essentially the Uber of packaged goods.
As noted in a subsequent AdAge article, Dash also presents big consumer packaged goods with a huge opportunity. Just as with online grocery shopping, the system will lock people into buying a specific brand and pack size. Sure, you can change your preference, but to do so the consumer will have to be motivated to put in the extra work. No more shopping around simply because something caught your eye, or you felt like a change, convenience will win almost every time.
This opportunity has ensured the participation of some of the biggest names in the USA: Tide, Huggies, Clorox, Glad, and more. The evidence suggests that they have everything to gain. Research by Millward Brown Digital finds that 63% of Amazon Prime shoppers convert during their shopping sessions, nearly five times the conversion rate of non-Prime members. It’s also far higher than the typical 3-4% conversion rate of U.S. e-retail sites in general. Amazon’s Dash offers the opportunity for big brands to lock in existing customers in the same way.
So what do you think? Is dash the best thing since online shopping or a weird idea doomed to fail? Please share your thoughts.
Written by Nigel Hollis,Executive Vice President and Chief Global Analyst at Millward Brown
Source:Millward Brown
