This week, Amazon announced a new platform called Amazon Anywhere that enables the discovery and purchase of physical products from within virtual environments such as virtual and augmented reality and video games.
The platform, which the company showed off through an integration with an augmented reality pet game called Peridot (from the same company that made Pokemon Go), allows customers to buy physical products without leaving the game environment. Game players and VR explorers can see product details, images, availability, Amazon Prime eligibility, price, and estimated delivery date as they would on Amazon’s website. They tap the “buy” button and check out using the linked Amazon account without leaving the game, and from there, products will ship out and can be tracked and managed via the Amazon app or website.
Today in-game and virtual world purchases are limited to digital goods like currencies or digital characters, but Amazon’s new platform opens up a potentially interesting new way for players to buy physical products. The Peridot demo enables players to buy merch like t-shirts, hoodies, phone accessories, and throw pillows with game art on them, but what if shelf-stable food or food-related items were sold from within the virtual environment? Would emerging CPG brands, which often use DTC strategies early on, see this as a potential new channel to market?
While the idea is an intriguing one, the main problem with Amazon’s platform is it’s Amazon’s platform. Amazon is a relatively expensive place to purchase food, and smaller emerging DTC brands tend to prefer selling on their website using white-label e-commerce platforms like Shopify, WooCommerce/WordPress, Magento, and Squarespace until they finally graduate to retail.
However, in-world physical product purchases might get traction with bigger multichannel CPGs. Amazon tried to court big CPG brands early on with its IoT-powered Dash buttons, but eventually abandoned the project in 2019 (though they are still selling a Dash smart shelf). The company also tried to get a return on its massive investment in Alexa through sales of everyday consumables, but the division’s recent struggles show consumers, for the most part, still like to click buttons on a web page or an app to complete a purchase.
Which brings us back to Amazon Everywhere. The use of virtual or augmented worlds will grow in time, meaning Amazon’s early effort to build a platform could pay big dividends in the long run. Brands could tie products to stories or characters through experiences that would be pretty much impossible through more traditional advertising. With in-world purchases, they would be able to convert in an entirely new way.
While it’s too soon to tell if consumers will bite, I have no doubt Amazon will attempt to find out. My guess is we’ll also see other players like Facebook and Microsoft follow Amazon’s lead and build out VR and video game in-world purchase platforms for physical products as well, but for now, it looks like Amazon has got the jump on them.
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