On Wednesday, Amazon introduced the beta version of its new cellular phone store, Amazon Wireless. Essentially, Amazon is trying to leverage its large customer base and online selling power into the competitive wireless arena. After spending some time working with the site, we think the company might be on the right track.
Shopping on Amazon Wireless is a similar process to buying from the carriers on other sites (at least for the beta, only phones and plans from AT&T and Verizon Wireless are being offered), but will have a comfortable familiarity to any of Amazon's regular patrons. After entering your ZIP code and selecting a carrier, you are brought to a page where you select a phone. Here is specifically where the experience has a slight edge, primarily due to Amazon's collection of user-written, star-based ratings and reviews.
Phones are displayed in a relatively large thumbnail format and also have the starting price, which varies depending on whether the customer is signing a new wireless contract or extending an existing one.
After selecting a phone, the available service plans are listed. As with the phone, the selected plan is chosen by adding it to a shopping cart. Finally, the customer is presented with service options, such as data plans and warranties, also selected via shopping cart. If users are renewing an existing plan, they are presented with an additional screen asking for personal information related to their current accounts so the carrier can verify eligibility.
After doing some quick price comparisons to Verizon Wireless' own Web site, it appears that Amazon's pricing is advantageous on some phones, and about on par for others. When pricing is similar, it is primarily due to Verizon's online discount, which is only available to customers willing to purchase via the Web site.
Overall, it appears that Amazon has the potential to benefit from this upgraded store. The interface is easy to use and logical to follow. Additionally, anyone who frequents the main Amazon Web site will already be familiar with the functionality.
As the store is still in beta, Amazon states it will be adding more functionality and options, such as new family plans and additional lines for family plans. It also intends to start offering phones without the requirement of a plan.
While the company doesn't necessarily break new ground with Amazon Wireless, the interface, as well as some better pricing, shows Amazon is serious about being top dog in every market it enters. Other cellular resellers are in for some heavy competition once the site comes out of beta.
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