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Amazon is tesing in-app purchase service to chanllenge Apple and Google

  Fan Qi        2012-04-04 08:18:18       4,576        0    

According to Bloomberg News, Amazon is testing a service that allows Tablet PC users to purchase goods through mobile applications, this shows that Amazon may enter the market led by Google and Apple.

According to Maria Ly, co-founder of the fitness club members
card vendor Skimble which involves in the test project in the Amazon. Amazon is testing the in-app purchase service which allows users to subscribe to and purchase of goods in the application. Amazon spokesman Kinley Pearsall declined to comment about this.

Developers and companies which are selling applications through online app stores such as Apple and Google can make profits
by selling goods in the downloadable application. Amazon may be able to sell Kindle Fire Tablet PC and more applications which can be downloaded to the device through the in-app purchase service in order to achieve revenue growth.

As HIS predicted, by 2015, the so-called in-app
purchase service will create a $ 5.6 billion in revenue, much higher than $ 970 million last year. Maria said: "We do want to enter Kindle Fire market, but we must also have our payment method supporting our business." According to her, most revenue of Skimble are from subscriptions and in-app purchase services, such as specific fitness programs .

Maria said that Amazon plans to
charge a 30% commission to those vendors who use the in-app purchase service businesses , this commission rate is the same as the commission rate Amazon gets from application developers. U.S. investment firm Wedge Partners analyst Brian Blair said the move will be an important measure of the Amazon to enhance their competitiveness, because the developers seek to increase profits through the application for shopping.

Blair said: "Amazon must be fully prepared for the opportunities in this kind of business. This is a wise move. Some of the best new application in the Apple App Store sales are free of charge, so users can easily download and see these applications, but in order to accomplish something in this area, they need in-app
purchase service."

Amazon has to catch up with Google and Apple, the number of applications of Amazonis are only 1400, while the number of applications of Google and Apple are more than 450,000. Amazon's share value had hit a new high in October last year, but because of the huge investment in order processing and Kindle business last year, the company operating costs increased 44% profit margin declined by 2.3 percent, Amazon shares have since fallen 20%.

According to Maria, Skimble users need to pay
$ 24.99 to buy its three-month fitness program membership card, the average individual fitness programs charge $ 9.99, the company will provide these two programs in Amazon's new application. Maria said: the purchase of services in the Amazon application is still in the preliminary stage, but they are full of optimism on the prospects of the service.

Note : this article is from http://tech.ifeng.com. Source article URL : http://tech.ifeng.com/internet/detail_2012_04/04/13645337_0.shtml

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