Amazon.com, Inc. (NASDAQ: AMZN)
Amazon has something very interesting going on at the moment. The company recently made the decision to launch what is being called “Dash Buttons.” Today, we’ll talk about what Dash Buttons are, the argument revolving around them, and whether or not they will prove to be a profitable venture for AMZN.
What Are Dash Buttons From AMZN?
Dash Buttons are an incredible new concept put together by Amazon.com. The new buttons are designed to stick to your wall, toilet, washing machine, or, really, any other surface. When the buttons are clicked, orders are automatically placed.
Imagine, you’re doing your laundry and realize that you’re starting to run low on laundry detergent. So, you push a button on your washer that automatically orders your detergent from Amazon for you. Once the button is pressed, you get an alert on your cell phone letting you know that the order has been placed, and, shortly, you get your detergent in the mail. That’s a whole lot easier than running down to Wal-Mart to get simple household goods, and that’s what AMZN is banking on with the idea.
The Argument Surrounding Dash Buttons
At the moment, there’s a big argument among investors surrounding Dash Buttons. Some investors see it as a great thing, while others see it as a waste of money. Here’s what the bears and bulls are saying…
- The Bears – The bears argue that consumers aren’t going to want buttons from AMZN all over their homes. They believe that this will take away from the look and feel of homes. They also argue that few members are going to find the offer appealing, since they have to purchase the buttons. As a result, the bears argue that the massive amount of money spent on this project was likely spent in vain, and that Dash Buttons will lead to a loss for the company.
- The Bulls – The bulls argue that this is a great idea. They believe that Dash Buttons will likely take off like a rocket. With Amazon.com finding another way into the daily lifestyles of consumers, this is going to generate massive amounts of sales for the company, leading to stronger revenue and larger profits.
Will This Be A Strong Play For Amazon.com?
This is the million dollar question my friends. I have a relatively mixed opinion of what we can expect to see from Dash Buttons from AMZN. At first glance, I don’t like the idea, and I mean I really don’t like it. I’ve looked at the buttons, and I wouldn’t have them in my house. The design just isn’t what it could be. However, I’ve also learned my lesson with regard to down playing the potential that Amazon.com has. You see, when Prime first came out, I saw that as a losing endeavor. While the company may lose money on the Prime service directly, indirectly the service leads to massive amounts of purchases through the company’s retail website. These purchases increased revenue and led to profits. Now, this is something different entirely, and it may work out to be a loss. However, I’m excited to see how AMZN spins it, as they have proven me incorrect in the past.
What Do You Think?
Do you think Dash Buttons will be a hit? Join the discussion at TalkTRENDZ from CNA Finance!
[Image Courtesy of Wikipedia]