Amazon in mad Dash to add buttons in U.S. homes
For those who may have questioned whether Amazon.com was joking around when it introduced its Dash button exactly one year ago today, it’s become abundantly clear that was not the case. The e-tailing giant has announced the expansion of the Dash program to more than 100 additional buttons enabling customers to order thousands of popular brand items across a wide variety of CPG categories.
“Prime members are using Dash Buttons at an increasing rate — over the last three months, Dash Button orders have grown by more than 75 percent,” said Daniel Rausch, director of Amazon Dash, in a statement. “Customers are using Dash Buttons more than once a minute, helping ensure they never run out of their everyday essentials.”
In a RetailWire webinar earlier this week, “The Rise of Convenience Commerce,” Ken Cassar, VP, Analytic Solutions at Slice intelligence, told attendees that Amazon sold nearly 400,000 Dash buttons in 2015. Dash reorders occur roughly once every two months and the average order size is large. Two Procter & Gamble products, Tide and Bounty, have average Dash reorder sizes of $20.11 and $27.11 respectively.
Slice Intelligence has also found that the use of Dash buttons pretty much squeezes competitive brands out of Prime members’ purchases. Bounty, for example, accounts for 99 percent of a customer’s category spending after a Dash button purchase. P&G rival Kimberly-Clark’s Cottonelle brand has 82 percent of category spending with Dash users.
New brands available using Amazon Dash include Brawny, Charmin, Clorox, Doritos, Energizer, Gain, Honest Kids, L’Oreal Paris Revitalift, Lysol, Peet’s Coffee, Playtex, Purina, Red Bull, Seventh Generation, Slim Jim, Snuggle, Starbucks, Trojan and Vitamin Water.
Dash Buttons are available to Prime members for $4.99 each, with the amount of the purchase credited to their Amazon account. To reorder products, Prime members press the Dash button. Orders come with free two-day delivery.
- More Than 100 Amazon Dash Buttons Now Available, Giving Prime Members the Easiest Way to Order Thousands of Products – Amazon.com
- Is Amazon’s Dash the future of shopping? – RetailWire
- Retail Disruption! The Rise of Convenience Commerce – Slice Intelligence/RetailWire
- Year later, Amazon goes bigger on Dash order buttons – USA Today
What are your expectations for consumer adoption of the Amazon Dash button along with other IoT devices for retail purchases over the next few years? Is “squeezing out” competitors with a Dash button ultimately a good or bad thing for retailers?