• Monday , 11 December 2017

Competitors, look out for Amazon’s newest killer e-commerce strategy

A new video patent approval for Amazon casts an interesting light on its plans for video commerce.

While Google still has a lead in online shopping research by consumers, Amazon is now its biggest competitor in providing information and online user-generated written reviews for shoppers.

Research firm L2 reports Amazon is now testing video reviews with some of its 2 million merchant partners.  Video reviews would clearly keep shoppers on the Amazon website longer and provide useful information to help them make purchases.

Video reviews ahead

Quartz.com reports:

In October, Amazon was awarded a patent for “content-based price reductions and incentives.” The patent says that “customers in an electronic environment can be presented with the option to receive advertising, such as audio, video, or interactive content, in order to receive discounted pricing or similar benefits.”

This is big news for Amazon competitors. it means Amazon could be planning to offer discounts, incentives and loyalty programs to consumers willing to view ads, video and other partner retail content.

It also opens the door for Amazon to offer credits or discounts for members sharing video product reviews.

Will consumers respond to video incentives?

Imagine Amazon with the equivalent of YouTube and Yelp keeping consumers on their online shopping website without having to go to Google or elsewhere for product reviews and information?

The big question is will consumers play ball? Will they be willing to invest their precious time watching ads and product reviews in return for rewards?

Walmart, Target and other e-commerce competitors will be paying close attention and figuring out how to respond to this latest Amazon strategy.

You can read more at Quartz.com and L2.

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