September 12, 2012

Amazon's Killer App: One-Click Merchandising

Along with Amazon’s recent unveiling of three new Kindle devices, they announced a killer new feature: in-app, one-click merchandise sales.

Mobile games are becoming household brands, replacing traditional media in attention and money. Games have a huuuuge opportunity to extend their brand and create new revenue streams through merchandise. Today’s kids aren’t asking for Mickey Mouse plush toys but instead big-headed, cuddly, red birds. Angry Birds is the best of example of this, generating over $31 million in revenue (30% of total revenue) from merchandise and licensing in 2011.

Amazon has a unique competitive advantage and strategy in the mobile market. What else can we expect? How will they use their expertise in e-commerce, personalized recommendations, and cloud services?

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