Amazon just rolled out its long-awaited Dash button, which lets users order a refill of a frequently used item with a single push. The button, which costs $5 and is only available to Prime members, is the latest example of the e-commerce giant’s endless experimentation. It’s also bad news for rivals like Walmart, which is already falling behind Amazon in attracting investments from key consumer packaged goods brands.
Manufacturers of Dash-enabled products currently make fewer merchandising investments on Walmart’s site than on Amazon, reflecting Walmart’s comparatively weaker e-commerce sales. Only one-quarter of brands in L2’s Home Care Index provide multiple product images on Walmart’s site, while 84% do so on Amazon. Similarly, less than half of brands supply a customer manufacturer description for Walmart vs. 64% for Amazon. The rollout of Dash heightens the likelihood of one-time customers making repeat purchases on Amazon. intensifying the competition for visibility on the e-tailer.
The list of brands partnering with Dash reveals which are most committed to Amazon. So far 18 brands have signed up for the button, mostly in the Home Care category. P&G, which made substantial investments in Amazon even before Dash, owns (or in Glad’s case, part-owns) nearly one-third of them. P&G and Kimberly-Clark (which owns Dash-enabled Cottonnelle) boost product pages for their frequently purchased items with features like multiple images, video and clippable coupons. Building on these merchandising tactics, Dash further eases the path to purchase.
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