Thursday, September 29, 2011

Amazon enters the tablet battle: It’s all about the shopping

What the aggressively-priced Kindle Fire will mean for news publishers.

In February 2010, before the first iPad shipments, I went out on a limb here (in a post about iPad strategies for publishers) with this prediction:
I believe the biggest transformation that will be wrought by the iPad will be to bring an enormous increase in online shopping.
How have things turned out so far? What might the results have to do withAmazon’s new tablet? And, most importantly for the Nieman Lab audience, what new disruptive challenges does all this throw at the elusive and precarious business models for news?
First, it turns out that tablets indeed push much more online shoppingas Dana Mattioli reported in the Wall Street Journal yesterday. In a story entitled “Tablets: Ultimate Buying Machines” — quoting info from Forrester Research, Macy’s, and others — Mattioli reported these findings:
  • Tablet shoppers make purchases in 4 to 5 percent of shopping site visits, compared to about 3 percent for consumers visiting shopping sites on PCs. That’s about 50 percent more purchases.
  • Tablet shoppers, according to many retailers, spend 10 to 20 percent more per order than PC shoppers or smartphone shoppers. Combined with the first finding, that means 65 to 80 percent more spending.
  • Tablet shoppers who shop via apps tend to spend much more than tablet shoppers on websites. (At TheFind, they’re spending three times as much through the app compared to the website.)

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