Apple is a master of supply and demand and the launch of the Apple Watch proves this. Demand is high as over one million watches have already been ordered. But the retailer strategically keeps supply low and many purchasers won’t receive their orders until summer.
This keeps consumers buzzing about the latest addition to the Apple suite for as long as possible. eBay sellers are capitalizing on this and selling watches they have yet to receive in the mail for many times the high price Apple already commands. Now that shoppers are finally getting their hands on the Apple Watch, the capabilities they’ll be greeted with could have a big impact on the retail industry.
Amazon is generally top of mind when it comes to anything eCommerce, and they’ll likely occupy the number one spot in retail now that the Amazon app has been released for the Apple Watch. That’s right, Amazon now has the ability to rake in the cash from your desk, a button, your pocket, and even your wrist.
The announcement Amazon made before their app came out spoke volumes about their intentions. A spokesperson explained, “We are committed to being anywhere customers want to shop. That includes watches. We have an Amazon shopping app for Android Wear and will look to expand to other devices.” They are called the “The Everything Store” and they also want to be everywhere. The adage we all know might be wrong after all, “you can’t be everything to everybody.” In fact, Amazon is aiming to prove it wrong by providing everything to everyone, everywhere they happen to be shopping.
Not only will Amazon be everywhere, but they’re also making it exceedingly easy to check out. Through Amazon’s 1-Click ordering system, consumers on Android Wear devices can search using their voice, save items to their Amazon Wishlist and automatically checkout. However, some reviewers have accidentally made purchases because the buy button is much more prominent that the to add to Wishlist button.
It will be interesting to see how much shoppers will spend using Apple Watches. After all, the screen is a mere 38 to 42 mm, raising questions of how likely consumers are to actually checkout using the device. One of the biggest reasons that shoppers don’t complete their purchase on mobile is due to difficulties with the tiny screen. Sure, you could argue that the latest iPhone and Samsung models have giant screens, but they’re still no desktops.
But what about the fact that iPhone dominates smartphone commerce revenue? During the 2014 holiday season, Apple iOS users spent $110.92 per order on average, compared to $87.26 for Android shoppers. iOS users also checked out at a higher rate, making up 17.6 percent of online sales, compared to 4.9% for Android users. It will be interesting to see if this pattern carries over to the latest Android vs. Apple technology.
Retailers are gaining yet another screen to connect with shoppers and the stakes are certainly high. Amazon is a master of omnichannel commerce, as they provide a seamless and branded experience on every channel shoppers choose to use. Smartwatches represent the new frontier of retail and it’s only a matter of time until retailers besides Amazon jump on the bandwagon.