Amazon’s mobile app offers space for other retailers

Amazon is building capability to provide space for other retailers inside Amazon’s mobile app. The Information has a pretty good story about thisupcoming move (unfortunately behind a subscription wall). I think this move is showing us where the app market is going also in a wider perspective.

 

I’d say that this move is fairly expected since only the biggest brands can get their apps to large groups of consumers. Smaller players struggle to promote their apps and get them installed. Also the initial and on-going development costs of high-quality apps are often substantial and can be too much for many smaller players.

It makes sense for some of the biggest players to start offering “shop in shop” style placement inside their own marketplaces. And especially for Amazon this makes a lot of sense since their business model has already developed towards helping other retailers and sellers to succeed.

The key take-away from this is that this same move can happen in many other industries too — especially if apps start becoming the favorite way how consumers spend money. The app market is strongly tilted towards “winner takes it all” logic.

e-commerce mobile apps Uncategorized

Perttu Tolvanen View All →

Perttu Tolvanen is a Web Technologies & E-Commerce Expert at North Patrol. Perttu assists clients on early-phase service design, defining requirements, and in technology selections.