Amazon’s launch of several apparel private labels over the last couple of years is one sign that it is serious about growing its share of the fashion market. Our survey found that a significant number of Amazon Fashion shoppers have already bought something from one of its still-new private-label ranges and that even more shoppers are interested in trying those ranges:
"Many of us have filtered water pitchers in our fridges, but if you're anything like me, yours is probably still a holdover from your college days. There's nothing wrong with that, but I upgraded to a larger, more efficient model and haven't looked back. Not only am I refilling this container less often, it's encouraging me to drink more water since there's always some left." — Brandt Ranj
Users can use Snapchat’s camera to scan a physical object or barcode, which brings up a card showing that item and similar ones along with their title, price, thumbnail image, average review score and Prime availability. When they tap on one, they’ll be sent to Amazon’s app or site to buy it. Snapchat determines if you’re scanning a song, QR Snapcode or object, and then Amazon’s machine vision tech recognizes logos, artwork, package covers or other unique identifying marks to find the product. It’s rolling out to a small percentage of U.S. users first before Snap considers other countries.
Promising review: "I love these pads. They are magnetic so they easily stick to the fridge. The items listed are the items that you use most often, and it is organized into sections that correspond to aisles at most grocery stores. Each section has a few additional blanks for adding those items that it doesn't list. This thing saves me a bunch of time!" —Steven Dix
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Snap refused to disclose any financial terms of the partnership. It could be earning a referral fee for each thing you buy from Amazon, or it could just be doing the legwork for free in exchange for added utility. A Snapchat spokesperson tells me the latter is the motivation (without ruling out the former), as Snapchat wants its camera to become the new cursor — your point of interface between the real and digital worlds.
In January 2013, Amazon launched AutoRip, a digital music service. The service allows customers to receive a free MP3 copy of select CDs purchased through Amazon. Amazon announced in September 2013 that it would launch Kindle MatchBook in October 2013, a similar service for books allowing customers who buy books from Amazon to acquire an e-book copy for free, or at a discounted price of US$3 or less. MatchBook was launched on the company's site on October 29, 2013.
Even considering that the teams launching private-label brands at Amazon have unrestricted access to programs like Vine reviews, they are still “paying” for these perks. The Vine review program is not a fully automated process that runs in the background. It requires technical and human resources to manage thousands of Vine reviewers and product review requests from vendors. Amazon is matching reviewers with samples and shipping the samples out, managing customer service, and maintaining the infrastructure of the program. You can bet that there are heated internal battles for Vine review program privileges on new product launches, even if the internal team is not personally dropping hundreds or thousands of dollars on the activity like brands have to do.