Amazon is moving into yet another retailing realm. This time, it's mobile phones.
Amazon on Thursday rolled out AmazonWireless.com, a beta Web site that offers cell phones, service plans, comparison shopping features, easy rebate redemption, and free two-day shipping on AT&T and Verizon Wireless phones.
Sprint and T-Mobile are noticeably missing from the short roster of carriers. However, Amazon said it plans to add carriers and expand its selection during the beta phase, as well as test features and gather input from customers to optimize the experience.
"We have taken our eight years' experience selling cell phones to create a new site that makes a potentially confusing transaction much easier for customers," said Paul Ryder, vice president of consumer electronics for Amazon.com.
Clearing Customer Confusion
Amazon may be tapping into a consumer pain point. A recent Best Buy Mobile survey reveals a large number of American adults are planning to buy a smartphone in the next 12 months, but barriers are standing in their way. Some of the barriers identified in the survey include confusion about the technology, the shopping experience, and price.
More than half of women and 42 percent of men are confused about which smartphone to buy, and more than half of adults over 50 express this confusion. Sixty-four percent of Americans say they don't own a smartphone because the devices are too expensive.
Best Buy and AmazonWireless seem ready to go head-to-head to solve these issues. Scott Moore, vice president of marketing for Best Buy Mobile, said his company offers smartphones from nine major carriers, along with unbiased, noncommissioned pros to guide consumers to the devices, features and services that are right for them.
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