Tag: amazon appstore

Amazon makes a move on mobile commerce with its own virtual currency

Amazon - Mobile CommerceAmazon aims to set itself apart in the mobile commerce field

Amazon is beginning to feel the weight of mounting competition in the field of online retail. Competition is beginning to heat up as more companies begin embracing mobile commerce for the sake of consumers that rely heavily on smartphones and tablets. Amazon is among the earliest adopters of mobile commerce as its position as an online retailer made the company well suited to meet the needs of mobile consumers. With competition from other retailers, however, Amazon has moved to set itself apart from other companies and has introduced its own virtual currency.

Amazon Coins could be an effective mobile commerce and loyalty tool

Virtual currency is not particularly popular with consumers. This type of currency is most often seen in the world of gaming, where consumers can purchase and use this currency to unlock additional content in the games they enjoy. In retail, virtual currency is somewhat rare as most retailers are content with handling actual money. Virtual currencies are not typically associated with mobile commerce as these currencies are not often associated with mobile platforms of any kind. Amazon believes that its virtual currency, called Amazon Coins, could be quite effective at capturing the loyalty of consumers, especially those interested in mobile commerce, as these Coins can only be used to purchase products through Amazon.

Coins can be used to purchase products from the Appstore

Those interested in using Amazon’s new currency must first purchase the Coins from the company. For 500 Coins, consumers will have to pay $5. The Coins can be used to purchase anything from the Amazon Appstore and are exclusive to Kindle Fire tablets. As such, the Coins are somewhat exclusive, catering to a niche market comprised of those with Kindle Fire devices. While the Kindle Fire has proven to be very popular, Amazon does not expect that the device is so popular that it would encourage consumers to purchase Coins. So, Amazon has decided to give away its Coins for free.

Amazon gives Coins away for free

This week, Amazon has deposited 500 Coins into the accounts of every Kindle Fire user. Amazon expects that the Coins will be well received among consumers as they can be used to purchase a multitude of applications, mobile games, music, and e-books from the Appstore. Moreover, items purchased using Coins typically receive a 10% discount, making the virtual currency more alluring for Kindle Fire users. Whether the Coins will succeed in helping Amazon establish a stronger presence in mobile commerce has yet to be seen.

Amazon opens Appstore in China to boost mobile commerce

Mobile Commerce Amazon AppstoreAppstore could add momentum behind growth of mobile commerce

Early last month, Amazon announced plans to expand its Android Appstore to some 200 countries around the world. China, however, was not on the list of countries that Amazon had plans to expand into. These plans seemed to have changed in just under a month, as Amazon has announced that it has opened its Appstore in China, offering a bevy of applications to Kindle users and those with Android devices.  Amazon’s apparent change of heart may be due to the promising mobile commerce opportunities that exist in China.

China proves to be favorable market for Amazon

China is home to a bustling e-commerce sector. According to Internet Retailer, a market research firm, Amazon’s e-commerce sales in China came in at $8.8 billion in 2012, approximately 5% of the company’s total online sales. Many of these sales came from mobile devices. Mobile commerce has been gaining a great deal of support from Chinese consumers, many of whom have shown strong favor for more convenient ways to pay for products that they are interested in.

Appstore expected to boost brand recognition and loyalty

By opening up its Appstore in China, Amazon is likely to find more traction among the mobile crowd. Consumers will have more access to the company’s products, particularly those designed for Kindle devices. The Appstore is also likely to drive brand recognition and consumer engagement, further solidifying Amazon as the dominating force in online retail in China.

Mobile commerce continues to gain traction around the world

China is just one of Amazon’s favored markets. The company has been showing a growing interest in mobile commerce as consumers around the world become more mobile. This can be seen in Europe and the U.S., as well as China. These markets have served to propel Amazon’s interest in the mobile commerce field, encouraging the company to engage a new generation of mobile-centric business that has begun a strong emergence around the world.