A little over two years ago, the Amazon Dash Buttons launched. It is still telling that the first successful screen-less e-commerce device got derided as surely being an april fools’ joke. (The mindset behind this behavior, utterly lacking of basic imagination, is also one reason for the Dash Button still being largely without any direct competition. And to be competitive surely would not be impossible: Brands don’t want to see Amazon’s monopsony get cemented. And the end-consumer side can easily be attacked as well. For starters, begin with working with price guarantees.)
Fortune has the latest information Amazon is ok with going public:
Two years later, Dash is among Amazon’s fastest growing services, albeit from a very small baseline. Orders using Dash Buttons are placed more than four times a minute compared to once a minute a year ago, according Amazon.
Using back of the napkin math, that’s around 5, 760 orders daily. Still that number is insignificant when compared to Amazon overall, which at its peak, handles hundreds of orders a second and raked in $136 billion in sales in 2016 alone.
June of last year, Amazon for the first time touted that the first brands working with the Dash Button programme already got more than 50% of their Amazon orders via those buttons. Now, that exclusive club is growing:
Amazon told Fortune exclusively that many brands, such as Folgers Coffee, Peet’s Coffee, Pepperidge Farm, and Ziploc, are seeing more than half of their Amazon.com orders placed via Dash Button devices. Household items are particularly popular. To date, customers have placed millions of orders with Dash Button, according to Amazon.
One interesting data point is the current usage pattern of the virtual Dash Buttons:
Six of the top 10 most popular items ordered using virtual Dash Buttons online are toilet paper and paper towels.
This implies that there is still a lot of potential on a very basic architecture level regarding shop frontends regarding specific use cases. (Not incidentally something we’ve been saying for years.)
There are reports (WSJ, paywall) on what Amazon charges partnering brands -$15 for each registered button and 15% commission for every product sold through a Dash button- but I would not be surprised if those conditions differ slightly from brand to brand.
As one would expect, Dash buttons increase the brands’ wallet share:
Shoppers who use Dash Buttons spend a much larger percentage of their category dollars with the Dash brand, according to Slice Intelligence. For example, people who have the Cottonelle Dash Button went from spending roughly 43% of their bath tissue dollars with the brand before to over 86% after.
This is why some (like us) see the Dash Buttons also as a data play. The buttons generate unprecedented market data for the brands and for Amazon:
The convenience of the Dash Button crowds out any other means of shopping for that particular item and in the process creates unmitigated shopping data on that item. Thus, the Dash Buttons create data you can’t get anywhere else in this kind of quality.
For brands, this spots a bright light on consumer behavior.
But this data becomes especially interesting when thinking about how far Amazon may go with the company’s private labels..
Read this regarding Dash Buttons and Amazon’s private labels.
Interesting in this regard is of course also the next Dash step: the Dash Replenishment Service. This represents going from pushing one button to automatic, and thus passive, refillment orders. Fortune:
Amazon told Fortune that, generally speaking, shoppers are happy with the Dash replenishment service. Only a single digit percentage of Dash Replenishment users end up canceling per month, it said.
As the Dash boss says:
“The goal is to make shopping disappear,” said [Daniel Rausch, one of Dash’s creators and its current leader for Amazon].
It is an equal parts audacious and reasonable goal.
The Dash Buttons have expanded tremendiously over the last two years. Here is the official site at Amazon.
We have written extensively about this topic:
* When Dash Button Orders Make up More Than Half of all Amazon Orders for Some Items
* Amazon Builds the Best System for Re-Ordering Consumables With Virtual Dash Buttons
* Here Is What a Big Part of Amazon’s Endgame Looks Like
* Data from Dash Buttons Will Lead to Evolution of Brands & Amazon’s Private Labels
* Why Amazon can Establish new Platforms Like the Dash Button Easier Than Others
* Amazon’s Dash Button Is Moving Forward As The Entry Point To A New Way Of Shopping
* Amazon’s Alexa and Dash Replenishment Service – A Level of Convenience Unseen Before