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Get Ready for New Amazon App Store

2011-01-07 zippycart

Online retailing powerhouse Amazon.com is hard at work on an app store, aimed initially at the rapidly expanding Android market, both phones and tablets. There are no details as of yet as to when the site might be open for consumers, but the developer side is already up and running. Amazon is apparently hoping to entice developers early by waiving the annual membership fee ($99/year) for those who sign up now.

The incentive for developers to get in on the Amazon app store are many. For starters, throwing in with Amazon gives developers access to the immense daily ecommerce traffic that Amazon sees every day. The Amazon app store will be built on Amazon’s existing retail software, including one-click buying. This means that all those credit cards and bank accounts that Amazon already has on file are automatically linked with the Amazon app store.

Another important distinction between the Amazon app store and the Google’s existing Android App Marketplace is “curation.” Much like the way Apple, Inc. scrutinizes the apps that it puts up on iTunes for its iPod, iPad, and iPhone devices, all submissions to Amazon’s app store will be held to high standards for functionality, reliability, customer service, and accurate descriptions.

High standards ensure good customer experiences, but Amazon’s access to customer buying history and up-to-the-minute activity will also drive sales at the Amazon app store. If a customer is searching the main site for a book about enraged avians, then you can be sure that Amazon will suggest a download of Angry Birds from the Amazon app store.

An interesting wrinkle for developers and consumers is Amazon’s final say in pricing. Developers will submit a “list price,” which Amazon can choose to lower if they think it will (ultimately) net the developer (and Amazon) a better return in the long run. Developers receive either 20% of the sale price or 70% of the list price, whichever is higher. If Amazon’s price undercuts the competitionOnline retailing powerhouse Amazon.com is hard at work on an app store, aimed initially at the rapidly expanding Android market, both phones and tablets. There are no details as of yet as to when the site might be open for consumers, but the developer side is already up and running. Amazon is apparently hoping to entice developers early by waiving the annual membership fee ($99/year) for those who sign up now.

The incentive for developers to get in on the Amazon app store are many. For starters, throwing in with Amazon gives developers access to the immense daily ecommerce traffic that Amazon sees every day. The Amazon app store will be built on Amazon’s existing retail software, including one-click buying. This means that all those credit cards and bank accounts that Amazon already has on file are automatically linked with the Amazon app store.

Another important distinction between the Amazon app store and the Google’s existing Android App Marketplace is “curation.” Much like the way Apple, Inc. scrutinizes the apps that it puts up on iTunes for its iPod, iPad, and iPhone devices, all submissions to Amazon’s app store will be held to high standards for functionality, reliability, customer service, and accurate descriptions.

High standards ensure good customer experiences, but Amazon’s access to customer buying history and up-to-the-minute activity will also drive sales at the Amazon app store. If a customer is searching the main site for a book about enraged avians, then you can be sure that Amazon will suggest a download of Angry Birds from the Amazon app store.

An interesting wrinkle for developers and consumers is Amazon’s final say in pricing. Developers will submit a “list price,” which Amazon can choose to lower if they think it will (ultimately) net the developer (and Amazon) a better return in the long run. Developers receive either 20% of the sale price or 70% of the list price, whichever is higher. If Amazon’s price undercuts the competition (which includes Google’s own app marketplace – ouch!) and they move more units, developers will see returns on their partnership with the Amazon app store.

That’s not a bad return on investment considering that getting your apps in the Amazon app store doesn’t even require exclusivity – that’s right, you can submit your app to Amazon and Google proper. Speaking of exclusivity, note the name “Amazon app store,” conspicuously leaving out the “Android” name, despite the fact that it’s exclusively Android (and exclusively US) right now. This begs the question, will the Amazon app store encompass other platforms somewhere down the road?

(which includes Google’s own app marketplace – ouch!) and they move more units, developers will see returns on their partnership with the Amazon app store.

That’s not a bad return on investment considering that getting your apps in the Amazon app store doesn’t even require exclusivity – that’s right, you can submit your app to Amazon and Google proper. Speaking of exclusivity, note the name “Amazon app store,” conspicuously leaving out the “Android” name, despite the fact that it’s exclusively Android (and exclusively US) right now. This begs the question, will the Amazon app store encompass other platforms somewhere down the road?