Tag: amazon mcommerce

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

| May 15, 2013

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.

eBay helps expand mobile commerce in India

| April 3, 2013

Mobile Commerce eBay IndiaeBay overcoming Amazon in the field of mobile commerce in BRIC countires

eBay has beaten Amazon in the race to expand e-commerce in BRIC (Brazil, Russia, India, and China) countries. Last week, eBay announced that it expects to see no less than 12% of its sales come from these countries by 2015. In order to achieve this goal, the retailer has been investing more heavily in e-commerce in these countries, with a strong focus on mobile commerce in particular. eBay anticipates that the global e-commerce market will be worth more than $300 billion by 2015, and the company is eager to beat out its only major competitor, Amazon, in order to establish dominance in the changing world of commerce.

eBay invests in Snapdeal

eBay has announced that it has completed Series C investment in Snapdeal, a leading online retailer based in India. Snapdeal boasts of more than 20 million users who regularly purchase products on a platform that is somewhat similar to eBay. Snapdeal has found some success in the field of mobile commerce, tapping into the growing population of India that has access to smartphones and tablets. The success the company has seen in the mobile commerce field has attracted the attention of eBay, which has invested $50 million into Snapdeal.

Snapdeal expects to see a strong sales year

By investing into Snapdeal, eBay is moving further into the Indian market. The company already has its own division devoted to the country, eBay India, but this only boasts of 5 million users, much less than those that make use of Snapdeal. Moreover, more consumers are beginning to favor mobile commerce over traditional forms of commerce. Snapdeal is more accommodating of purchases being made bring a mobile device than eBay India is, which leads more consumers to the former rather than the latter. With 20 million users and a strong focus on mobile commerce, Snapdeal is expected to generate more than $400 million in sales this year.

Amazon finds some progress in Brazil and elsewhere

Amazon has been working to establish a stronger presence in BRIC countries but has been met with several challenges along the way. While none of these challenges are expected to topple Amazon’s efforts, eBay was able to overcome the challenges it faced more quickly than its competitor. Nonetheless, Amazon is rapidly establishing a foothold in Brazil in much the same way that eBay is establishing its presence in India.