Well, actually they have a couple. They made a huge investment in LivingSocial, which for tax reasons they didn’t turn into a full-on buyout. Amazon is one of the biggest names in the world of ecommerce software, but they are constantly aware of real world considerations like the taxes they need to pay for their physical representation in various states.
Their other daily deals program is Woot! a tech-themed startup that they acquired last June. Woot specialized in tech, but has since grown out to t-shirts, wine, even kids stuff. With all this coverage already, why the new angle?
First and foremost, while LivingSocial already puts out targeted daily deals in a variety of markets and is the lead competitor against Groupon, the new daily deals ecommerce software that Amazon has set up leaves room for them to leverage additional deals from other providers. Right now all AmazonLocal deals are done through LivingSocial, but that could change. Much like how Amazon draws strength from the wide array of sellers available in their marketplace, while still having a stable, steady catalogue of goods that they sell and fulfill themselves, a more open AmazonLocal ecommerce software platform could allow them to do the same thing with daily deals.
Just look at the success they’ve had with their Android App store (and now Mac Store – but not “Mac App Store!”). By going outside the normal system (one provider running an app marketplace), they’ve made a great niche for themselves and are moving apps every day. Getting a group of providers to back your service instead of just relying on one supplier is a great way to diversify your offerings and improve revenue potential.
The inaugural city for AmazonLocal is Boise, Idaho, which might initially sound a little strange. According to Amazon, they chose Boise because of their blue football field, which they say symbolized fun and adventurousness, two things that they want people to associate with their new site.
via ZippyCart
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