retail news in context, analysis with attitude

by Kevin Coupe

All Things D reports that research firm Consumer Intelligence Research Partners (CIRP) has come up with some interesting numbers that highlight Amazon's business strategy:

• CIRP estimates that there are some 20.5 million Kindle e-readers being used in the US, and that four out of ten Amazon customers own one.

• And, "CIRP estimates that Kindle owners spend $1,233 per year on Amazon compared to $790 per year for Amazon shoppers who don’t own one of the company’s e-readers or tablets. Kindle owners aren’t necessarily buying more at a shot, but are buying more frequently."

Now, this doesn't mean that Amazon should lower prices on Kindles or even give them away as a way of generating more content sales … because right now, the balance seems to pretty much on target; if people with less disposable income had them, it almost certainly would lower the amount of money being spent using them.

But it certainly suggests Amazon's broader interests when it comes to controlling the supply chain as much as possible. For example, will it be long before Amazon starts selling its Amazon Fresh services aggressively via Kindles? It isn't hard to imagine that the company could develop applications that will make the whole online grocery experience both more functional and more fun.

It'll be an Eye-Opener.
KC's View: