Amazon's mobile shopping app is now featuring products from other sites.
Speaker AAmazon is testing a new feature that enables users of the Amazon Shopping app to find select products from other sites and go there to purchase them.
Speaker ACurrently in beta, the Shop Brand sites directly feature is live for some US Customers and will be rolled out to more based on feedback, the company said on a Tuesday, February 11th press release.
Speaker ACustomers who have access to this beta search will find in their search results select products that Amazon doesn't sell in its store alongside the products that Amazon does sell.
Speaker AAnd they will see a link to the brand's website, according to the release.
Speaker AWhen customers click on that link, they will receive a notification that they are leaving Amazon and will go directly to the brand's website where they can evaluate the product and make purchases directly from that brand.
Speaker ANow, here's the kicker.
Speaker AIf that brand happens to have Buy with Prime enabled products, prime members will then be provided with free delivery, easy returns and customer support for the items that they purchase directly on that brand's website.
Speaker ALisa, we're going to you here with this one.
Speaker AAgain, what are the pros and cons here of Amazon testing if consumers will want to buy products from other websites via the Amazon mobile app?
Speaker BYeah, look, we all know there's always an angle with Amazon, right?
Speaker BHow they're going to drive more, right?
Speaker BSo I think at the end you kind of hit on it.
Speaker BLook, if it's Prime, Amazon's winning anyhow, right?
Speaker BBecause they're doing the back end of that execution.
Speaker BThey're collecting data, right.
Speaker BThey're gaining a financial benefit.
Speaker BThey're also gaining insights of what don't I have on my site.
Speaker BYou know, maybe their algorithms aren't perfect, but now this will be a new algorithm they can add because they'll have some access, some way to understand how the consumer, you know, is going from site to site.
Speaker BLook, I, I don't know that I can necessarily see a con on it at the end of the day because ultimately there's so many different learning and revenue streams and opportunities that I think Amazon does get from this.
Speaker BPlus, in a lot of ways it'll benefit their partners.
Speaker BSo it actually, in a different way is, is a new positive shift on their partnerships because they're saying, hey, if you don't allow us to carry this from you on our site, we're going to still support you.
Speaker BNow, likely they're driving that kind of prime deal with them simultaneously.
Speaker BBut honestly, I think generally speaking for amaz, a win win for brands that don't have you know, great accessibility.
Speaker BI think it's a win for those brands.
Speaker BSo I'm not really sure I see a big con here as it relates to Amazon and the consumer experience here because basically the consumer wants fast.
Speaker BAmazon has trained them that way and they're going to get it any way they want it now.
Speaker AYeah, I mean, I think you did.
Speaker AI agree with everything that you said, Lisa.
Speaker AI think it's also the only thing that I would add in is that it's still a search game and Amazon wants to be the first place that you go when you're looking for products they want.
Speaker AThey're in competition now with, you know, ChatGPT or with ChatGPT, with Google, with all these other search engines to get that traffic to be the place where you can find the product the fastest that you're looking for.
Speaker AAnd so I think that's the biggest component here is, you know, it comes down to where can I go that I can confidently find those products?
Speaker AAnd then, of course, Amazon's getting all of this information and setting up their sales team is to be like, you need to go talk to this person, because people are, people are looking for this on Amazon and they're, they don't have buy with prime set up.
Speaker ADavid, where do you land on this?
Speaker CYou know, I think when you got to pay for a $600 million wedding or replace the teak on your boat because you use the legal ones, you need another revenue stream, right?
Speaker CAnd this is a perfect revenue stream for, for Amazon.
Speaker AThis is, this is buying.
Speaker CPointed it out earlier, Right.
Speaker CYou know, Amazon's a nerdy tech company and effectively a supply chain company.
Speaker CSo it's a perfect play.
Speaker CI mean, this is an AWS and supply chain play, right.
Speaker CIt's the natural extension of what they're already doing.
Speaker CThe all the brands already have branded stores on Amazon.
Speaker CSo what's the difference now if it actually just goes back to their site and, you know, and Amazon does the fulfillment on it, which is, you know, most of the products will probably be prime enabled anyways.
Speaker CSo it's, it's a perfect evolution of what they're already doing to, you know, make them a bunch more money.
Speaker ARight.
Speaker AChris, how do you, how do you think about this?
Speaker DI don't have much to add.
Speaker DI think the point I bring in here is I think this is a little bit more.
Speaker DThis, a little bit more of a defensive move than an offensive move.
Speaker DHave we been.
Speaker DAs we've been discussing.
Speaker DAnd I think it goes back to what you said, and I think it's because of the rise of gen AI search.
Speaker DI think, you know, Amazon has no choice to go but to go in this direction.
Speaker DThat's my opinion because, you know, otherwise they're going to give up the game to Google and any startup gen AI search engine over time.
Speaker DAnd.
Speaker DBut the thing that Amazon has in its back pocket that makes me think this could work to the point that you guys are saying is, and Ann, you said it too.
Speaker DAmazon knows how to get shoppers and convert them to buyers faster and better than anyone.
Speaker DSo, you know, as they're developing what the next generation of search commerce looks like, I think Amazon has a good footing in there.
Speaker DAnd the buy with Prime Hook, as I think about that evolution is also really interesting to me as well.
Speaker DSo yeah, that's, that's my take.
Speaker DI think universally we all are kind of agreeing this one and I think.
Speaker CThat the buy with Prime Hook is, is really interesting because the things that most of the, you know, kind of the national brand struggle with more than anything else is the supply chain and the shipping side and dealing with returns.
Speaker CIt's, it's really what is killing them.
Speaker CAnd now they've effectively just outsourced it to Amazon.
Speaker CSo I do think for a lot of the bigger brands, it's a win, win.