Amazon.com, Inc. (NASDAQ:AMZN) is planning to get more brands on board with its dash buttons as part of its strategy to attract more consumers.
The Wall Street Journal stated that the online retail giant is expected to announce the inclusion of numerous new brands for Dash buttons sometime this week. The decision to increase the number of brands on the ordering service will reportedly be pushed through despite the fact that customers have not responded very well. This, however, is because the Dash buttons were initially conceived as an April fool’s joke when the company launched them a year ago.
The Dash buttons which appear as thumb-size features were designed to allow shoppers to make orders for items such as detergents through the press of a button. The feature has not been popular, and research data indicates that less than half of the consumers that had purchased a Dash button since 2015 have used it to order products. The research also states that those who use the Dash buttons to make orders do so on few occasions, perhaps once or twice every month.
Various consumer product executives revealed that they had signed up for the feature to make sure that their brands maintain their relationship with Amazon. They described it as a marketing tool for products rather than just a system for product delivery. So far more than 100 buttons are available supporting a wide variety of products. Amazon’s plan 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 people to use the Dash buttons.
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.