The Amazon (AMZN) Dash Is A Big Win! But, For Who?

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Amazon Stock NewsAmazon, Inc. (NASDAQ: AMZN)

Always the innovator, Jeff Bezos’ Amazon is always finding new ways to become an essential part of its customers’ everyday lives. The newest attempt has come in the form of a button. Called the Amazon Dash Button, it makes it easier for Prime subscribers to restock on everyday products with just a push of a—for lack of a better word—button.

The Skinny on Dash From AMZN

According to Amazon:

“Use the Amazon app on your smartphone to easily connect to your home Wi-Fi network and select the product you want to reorder with Dash Button. Once connected, a single press automatically places your order. Amazon sends an order alert to your phone, so it’s easy to cancel if you change your mind. Unless you elect otherwise, Dash Button responds only to your first press until your order is delivered.”

It’s a pretty novel idea, if you ask me. There’s also quite a selection of brands to choose from, and I can only guess more will be added to the list soon. That’s why the company spends so much money to provide free shipping. It’s why it’s Subscribe and save program is so popular. It’s why it tried so hard with the Fire phone (although that one failed miserably). And there are some fail-safes in place to make sure the kiddos don’t order 500 boxes of Macaroni and Cheese while you’re not looking.

But is it Really Good for Consumers?

That’s the questions some experts are asking, and it’s a great question. Sure it’s convenient, but sometimes convenience appeal so easily to our vices. It’s possible that some people who might ordinarily be fine with being out of stock on something will suddenly feel like they need to be always in stock, causing them to fork out a lot more money over the long run.

Whether or not it’s good for consumers is up in the air, but it’s definitely better for Amazon’s partners. Now these companies don’t even need to advertise to get these customers. They’re already sold on the convenience and the free shipping.

It’s great for Amazon

I wasn’t sold on the Fire phone from the beginning. The Firefly app was a great idea, but it was the only compelling feature on a phone that was supposed to compete with premium phones. It’s likely that the majority of the customers who get the Dash button are those who are already on the Subscribe and save program. Why? Because pressing a button when you need something is a lot more practical than getting a product every week whether you need it or not.

It also might be enough to get more people to sign up for Prime. Like I said, it’s all about convenience, and if you have a constant need for some of these things (especially if you have kids), the $99/year for Prime doesn’t seem so bad anymore. So despite all the negative things that have been said about the Dash button, I feel that this might be a win for the company.

What do you think?

Let us know in the comments below!

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