Amazon.com, Inc. (NASDAQ: AMZN) is doubling down on its dash buttons ordering devices by add dozens of brands to them, even there is no one asking for more dash buttons. Customers are encouraged to put these wireless devices by their washing machines or refrigerators for convenient reorder.
However, according to Slice Intelligence estimation, less than half of customers who bought dash button have used it to place an actual order since March 2015, and those people who did order by dash button make a purchase usually once every two months.
A lot of customer product executives stated that they had signed up for using dash buttons in order to maintain their brands relationship with Amazon. They described dash buttons as a marketing tool for products rather than just a product delivery system. Until now, over 100 dash buttons are available supporting a wide variety of product brands. Amazon’s strategy is to significantly increase the number of buttons so that they can support almost every product especially those designed for home use. This, in the long run, will attract more customers to use the dash button.
“It may not be the most intuitive feature,” said Ken McFarland, director of e-commerce for Seventh Generation Inc., which has Dash buttons for its cleaning products and diapers. “But Amazon is trying so many things and you don’t want to miss out on the ones that work. You want to be out there if it does happen to be a hit.”
Amazon receives $15 for each button that it sells to companies and 15% of every product sold through dash buttons. Consumers thus pay $5 for each button though the company makes it more appealing by offering $5 refunds for each button. Only customers that are subscribed to the company’s Prime service have the mandate of using dash buttons. These dash buttons fit into Amazon’s broader strategy to make shopping as easy as possible, giving clients less reasons to go to competitors’ stores.