Amazon is attempting to bolster the apps offered in its online store by letting users make purchases within those applications. In-app transactions are an important part of business, so of course Amazon is likely rubbing its hands together gleefully with this news, as they’ll now be able to rival Google and Apple. Or try.
Bloomberg BusinessWeek says the new software will allow developers to charge for digital content and subscriptions. Walt Disney Co., Conde Nast, Gameloft and Dow Jones & Co. have been testing the service out over the last three months.
“Allowing for in-app transactions is now basic functionality for app stores, and this is necessary to help Amazon even the playing field,” said Colin Sebastian, an analyst at Robert W. Baird & Co. in San Francisco, who expects Amazon shares to outperform peers. “Without this, I think Amazon’s app store would be at a disadvantage.”
There’s a lure for developers to write software for Amazon’s store when it’s easier to charge for items within apps. Amazon will also come away with 30% commission from every in-app purchase.
Currently, Amazon only has 34,000 apps, compared with the 4,000 it started off with in March 2011. Google and Apple have more than 450,000 apps each.
Amazon’s one-click purchasing will also be used in the new feature, so that consumers won’t have to leave the application to purchase the item they want.
Amazon Adds In-App Purchases to Woo Developers Away From Apple [Bloomberg Businessweek]