1-click checkout now out of Amazon's control

Amazon Inc.'s 1-click purchase patent expired Sept. 11, 2017, following a successful, 20-year run. Awarded in 1997, when Amazon was selling books online, it enabled consumers to purchase items with a single click, using stored billing, shipping and payment credentials. Retail analysts say the 1-click concept revolutionized online retail and boosted ecommerce spending. Casey Gannon, Vice President of Marketing at Shopgate Inc., expects to see 1-click checkouts broadly implemented across the retail ecosystem in the wake of the patent's expiration.

"With the expiration of Amazon's 1-click buying patent, retailers are left with a significant opportunity to leverage similar technologies, a functionality that can help reduce cart abandonment," Gannon noted. "For mobile users in particular, cart abandonment is one of the most prevalent challenges retailers face."

Miya Knight, Global Retail Technology Director at PlanetRetail RNG, stated, "While shipping, taxes and delivery impact conversion online, shopping cart abandonment costs retailers millions in lost revenue. Therefore, anything that can reduce friction at the point of checkout should be prioritized by retailers." Knight further noted the 1-click patent gave Amazon a competitive advantage; like Gannon, she expects to see competitors implement similar 1-click ordering schemes.

Consumer brand optimization

In addition to speeding checkouts and improving online conversion rates with 1-click ordering, Amazon built a global marketplace that provides consumer brands and retailers with actionable metrics and consumer data. Salt Lake City-based One Click Retail helps leading consumer brands leverage Amazon's advanced algorithms to increase sales through targeted campaigns.

The company expanded on Amazon's marketing principles in a report titled 4 Ps of a successful holiday eCommerce plan: Products, Price, Promotions and Placement, published Sept. 11, 2017. Following are several highlights from the research:

• Products: Amazon's search algorithms enable consumer brands to index products according to recent customer search histories.

• Price: Amazon's advanced price-matching system helps brands remain competitive by offering unique feature sets and bundles.

• Promotions: Amazon's platform helps brands offer online deals and discounts to a wide audience during peak retail seasons, optimizing sales performance.

• Placement: Nine out of ten Amazon purchases begin with search, according to One Click Retail, which means brands must search-optimize products for consumers who search for them.

1-click mobile payments

The Amazon Mobile Payments Service launched 1-click mobile payments in October 2009, with a branded mobile app for Apple, Android and Windows mobile devices, along with an application programming interface library for mobile app developers. The solution was designed to provide the same peace of mind and convenience as the Amazon.com online shopping experience to tens of millions of Amazon.com customers, the company stated.

"We're pleased to make it easier for our Amazon Payments developers and merchants to extend mobile payment options and the ease of 1-Click checkout to their customers," said Howard Gefen, Director of Amazon Mobile Payments in an Oct. 5, 2009, statement. "Amazon customers can now also make purchases on third party sites without needing to set up separate payment accounts—they simply use the payment information in their existing Amazon accounts."

Gannon expects more ecommerce merchants to offer 1-click checkout options on the mobile web. "Timeliness is the single most vital aspect of the decision-making process, and mobile retailers should adopt one-click checkout processes, as well as leverage deep links, social login, and other streamlined payment options to most effectively capture the mobile user in the right moment – the exact moment they're browsing," she said.

Editor's Note:

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.