Amazon Local Register

Think of Amazon's role as an online merchant: they've built a 3rd party merchant system where other folks can use Amazon's retail and distribution. Then, they gathered centralized data of what sells, at what prices. They stepped in and started carrying more profitable items themselves.

Now, look at their role here: if this takes off, they'll have data on what merchants are selling, for how much, and to whom. These are items that Amazon wouldn't normally get sales data on because people choose local vendors instead.

If Amazon wanted to start pushing more into local markets (or different kinds of products), they can make a fortune off this data, and that's why they can afford to undercut companies like Square. It's a long term play.

Re: Amazon Local Register

#5

Post by Igglyboo » Wed, Aug 13, 2014, 12:59 PM UTC

Can someone explain why manually keyed transactions cost more than swipes? I'm thinking there's more risk involved with those or something along those lines.

Re: Amazon Local Register

#6

Post by mapleoin » Wed, Aug 13, 2014, 12:59 PM UTC

BrentOzar wrote: post #4

Think of Amazon's role as an online merchant: they've built a 3rd party merchant system where other folks can use Amazon's retail and distribution. Then, they gathered centralized data of what sells, at what prices. They stepped in and started carrying more profitable items themselves. Now, look at their role here: if this takes off, they'll have data on what merchants are selling, for how much, and to whom. These ar…

They're only undercutting Square until 2015, after that the fee is 2.75%, same as Square. Read the fine print.

Re: Amazon Local Register

#7

Post by BrentOzar » Wed, Aug 13, 2014, 1:02 PM UTC

mapleoin wrote: post #6

BrentOzar wrote: post #4

Think of Amazon's role as an online merchant: they've built a 3rd party merchant system where other folks can use Amazon's retail and distribution. Then, they gathered centralized data of what sells, at what prices. They stepped in and started carrying more profitable items themselves. Now, look at their role here: if this takes off, they'll have data on what merchants are selling, for how much, and to whom. These ar…

They're only undercutting Square until 2015, after that the fee is 2.75%, same as Square. Read the fine print.

> They're only undercutting Square until 2015, after that the fee is 2.75%, same as Square. Read the fine print.

Yes, because Amazon never lowers their prices, do they? Read the news.

Re: Amazon Local Register

#8

Post by nodata » Wed, Aug 13, 2014, 1:04 PM UTC

Igglyboo wrote: post #5

Can someone explain why manually keyed transactions cost more than swipes? I'm thinking there's more risk involved with those or something along those lines.

It's easier to enter a fake credit card number than to produce a fake credit card.

Re: Amazon Local Register

#9

Post by Calcite » Wed, Aug 13, 2014, 1:08 PM UTC

aembleton wrote: post #2

Would be cool if they supported chip and pin and paypass.

I wonder if these kind of initiatives slow the adoption of chip and pin credit cards in the US. If Amazon is willing to lower the fees for swipes, pin entered transactions could be even lower.

Re: Amazon Local Register

#10

Post by gst » Wed, Aug 13, 2014, 1:13 PM UTC

mapleoin wrote: post #6

BrentOzar wrote: post #4

Think of Amazon's role as an online merchant: they've built a 3rd party merchant system where other folks can use Amazon's retail and distribution. Then, they gathered centralized data of what sells, at what prices. They stepped in and started carrying more profitable items themselves. Now, look at their role here: if this takes off, they'll have data on what merchants are selling, for how much, and to whom. These ar…

They're only undercutting Square until 2015, after that the fee is 2.75%, same as Square. Read the fine print.

According to the site it's 2.5% instead of 2.75%.