Amazon.com share price down, introduces single push ordering

In its quest for revenue growth Amazon.com unveiled a new service allowing its Prime members to order household items ranging from diapers to skin moisturizers with the push of a single button.

What people actually thought was an earlier April Fools joke actually turned out to be the retailers first step into the “Internet of Things”. The so-called Dash Button will connect with the Amazon app on a users smartphone through Wi-Fi and a single push will instantly order the respective product.

“Place it. Press it. Get it.”

The device comes with a reusable adhesive and a hook so that it can be placed wherever you need, for example on a washing machine. Once you run low on detergent, you can press it for an instant order that saves you a walk to the local store, going online or even visiting Amazons application. Upon pushing the button, the users smartphone receives a notification with the option to cancel the order within the next 30 minutes.

Participation in the program is available through invitation only and accepted users receive up to three branded devices. Different brands, including Tide, Bounty, Huggies, Clorox, Wellness, Glad and others are available via Dash.

And although people would not have their homes full of buttons, these devices make sense for those things you regularly buy in set amounts, said Kinley Pearsall, an Amazon spokeswoman.

“You see the Tide button, you know it’s for Tide and the same amount you buy every time shows up on your doorstep two days later,” Pearsall said.

The $99-a-year Amazon Prime membership offers free two-day delivery on many items and the retailer is seeking to further draw customers away from local shops by expanding its one-hour delivery service in some cities. However, some market researchers argued that the Dash Button may fail its goal as everyday items like the ones offered are usually not ordered immediately before being completely used up.

However, Amazon has taken this into account as well with its Dash Replenishment Service, built right into household devices. The retailer is working with electronics manufacturers to incorporate the service. For example, Brother is devising a printer that would detect when ink is running low and purchase more automatically from Amazon. The online retailer hasnt yet announced whether the replenishment of products will be locked to certain brands but the button will provide information for the decisions going forward.

Amazon.com Inc settled 0.66% lower on Tuesday on the NASDAQ at $372.10 per share, marking a one-year change of +10.62%. The online retailer is valued at $172.80 billion. Shares were down 1.21% at 346.750 euros at 9:14 GMT in Frankfurt on Wednesday. According to CNN Money, the 36 analysts offering 12-month price forecasts for Amazon have a median target of $400.00, with a high estimate of $475.00 and a low estimate of $312.00. The median estimate represents a +7.50% increase from the last price of $372.10.