Online retailer Amazon.com, (NASDAQ:AMZN) 1-Click has been generating decent amount of cash over the years for the company. Indeed, it brilliantly managed to generate enough revenue for Amazon.com, (NASDAQ:AMZN) to guard its distinctiveness of it in the courts. However according to reports its patent on this technology is running out in 2017, and it’s possible that a lot of online stores will tend to adopt similar technology.
Amazon.com, (NASDAQ:AMZN) initially applied for a patent on 1-Click in 1997, and it took couple of years before granted in 1999. The principal of the scheme is that by storing the payment and address details customer only need to click a single button to order something. This help in cutting down complicated steps while ordering something, that also help in becoming time efficient and what is termed “frictionless”.
Certain reports suggest that whole 1-Click business could be valued as much as $2.4 billion to Amazon. As there is no doubt value to the speed at which someone can order products, the real plus here is about creating an experience that isn’t widely available on any other online store.
Meanwhile there is only Apple, which uses its own version of Amazon’s system and pays the company an unrevealed sum of money to do so. Apple’s app store ordering system is quite similarly frictionless. In case if customer had to add apps and similar to a cart first, it would almost certainly hamper sales. Which somewhat verifies Amazon’s point when it comes to this system.
Undeniably, 1-Click helps Amazon.com, (NASDAQ:AMZN) become a preferred retailer for people. Most of the users can verify to the ease with which it can be used to make orders on Amazon, and this is all part of the company’s idea to make the consumer spend as much money there as possible.