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Amazon Dash Button orders are through the roof (AMZN)
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Newly released data from Amazon highlights the rapid growth of its Dash Buttons, with both order volume and brand partners escalating quickly in just one year since the devices launched.
The small key-fob-sized devices, which can be placed around a user's home, are associated with various brand products and link to Prime customers' home Wi-Fi and the Amazon Mobile App to enable one-click orders. The exponential growth of the Dash Button illustrates the significant value they hold for consumers, and they're popularity can help Amazon gain meaningful data on the behaviors of its shoppers.
Amazon's Dash Button division is growing rapidly:
Order volume has skyrocketed: Orders placed via Dash Buttons have grown fivefold over the past year, Amazon reports. Because the devices are centered on consumer packaged goods (CPGs), even a small audience for the Dash Button can help drive up order volume for Amazon as these types of products require frequent purchases.
More brands are signing on: As of yesterday, over 60 new brands had signed on to launch their own Dash Buttons, including Cheez-It, Coca-Cola, and Philips Sonicare. With these new additions, Amazon now offers over 200 different Dash Buttons. The rapid growth of brand partners signals the value that these companies see in the devices and is likely indicative of Dash Button performance so far.
Dash Buttons give Amazon a wealth of information about its shoppers. Breeding loyal customers isn't all Amazon is looking for from the Dash Button — it also wants to learn more about its customers. Using a Dash Button typically signals that a customer is running low on a certain item, which tells Amazon what the shelf-life in that household usually is. And while predictive modeling isn’t in its immediate plans, Amazon could potentially use this information to anticipate a customer's needs before the shopper even goes to place an order.
Peter Larsen, Amazon’s VP of devices, seems to have this in mind for the future, according to The Verge. As he describes it, Amazon may eventually be able to resupply customers with items before they run out — for example, it could send out fresh light bulbs as an old one is about to shut off.
Amazon is becoming a resource for shoppers to buy replenishable goods. Shoppers no longer need to run to the local supermarket or drugstore for items like personal care products and snacks if they've purchased a Dash Button. The devices make it simple to order these items, and Amazon's guaranteed two-day shipping with Prime can help appease any impatient customers. By pushing order capabilities into home devices, Amazon is creating an entire ecosystem for its shoppers that eliminates the need to search elsewhere.
This also puts competitors at a significant disadvantage when shoppers bypass search engines or social media to research products. Rather than trying to compete with Amazon, brands may begin to consider the e-commerce giant an ally. In fact, launching Dash Buttons of their own may prove favorable, considering the program's exponential growth thus far.
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