Amazon vs Google & Apple with in-app purchases
It appears that the world’s largest online retailer, Amazon is getting into the in-app purchases game, as word has it that Amazon is testing a new service that will enable customers to make purchases via mobile apps, an area that would take Amazon up against the big guns in the in-app market, Apple and Google.
Business Week is reporting that the co-founder of physical fitness programs, Skimble, Maria Ly has said that the new service being tested by Amazon enables both subscriptions and individual item purchases from within applications, however when contacted, a spokesperson for Amazon didn’t reply to a request for comment.
Ly went on to say that most of Skimble’s sales are generated from subscriptions and in-app purchases, like specific workout regimes, and that they really wanted to attack the Amazon Kindle Fire market, but also have access to the payment methods which supports Skimble’s business.
Ly confirmed that Amazon’s cut will be 30% commission on in-app purchases, the same rate they charge developers for app sales, and stated that the new Amazon in-app purchases service is in its early stages, but they are optimistic about it.
Skimble charges $24.99 for a 3-month subscription to their workout program, and on average $9.99 for an individual program, and would offer both packages with the new Amazon service.
So there you have it, it looks like Amazon will be jumping into the in-app purchases game, something that can generate quite a bit of cash for Amazon, as apparently in-app purchases are expected to generate $5.6 billion in revenue in 2015, whilst last year in-app purchases generated $970 million.