Amazon has unveiled a new set of tools that enable developers in the US to make auto-replenishment with smart home devices easier. The new inventory sensors will work with all connected devices that use consumables, such as printers, thermostats, toothbrushes, and washing machines. Alexa will inform customers that their supplies are low so that they can select the products they prefer and schedule automatic refills through Amazon’s Dash Replenishment Service (DRS).
The inventory sensors will provide consumption data, which Amazon will pair with customers’ ordering patterns to keep track of their inventory needs. This creates an opportunity for suppliers to monetize their connected devices by selling consumables designed specifically for their devices. Alternatively, they can receive a fee for consumables sold by third parties on Amazon. They will also earn a recurring revenue share for all re-orders placed driven by Alexa notifications.
The enrichment of DRS enhances Amazon’s digital ecosystem, creating a captive environment that boosts consumer engagement, increases wallet share and time spent on the platform, driving up switching costs. Suppliers seeking to embed their brands within this ecosystem must invest in data-driven product development and innovate with these new technologies while driving supply chain efficiencies.
