Amazon.co.jp makes of RFID and Internet-Telco synergy a reality

Amazon, as far as I know, is the first blue-chip Internet company to launch a sound e-commerce mobile service.

Briefly speaking, Amazon´s "Scan Search" service boils down to:
* having users downloading onto their cellphone a free application;
* Whenever a user goes to a brick-and-mortar shop, she/he has the possibility to scan its barcode and send it instantaneously to Amazon´s system;
* if the product´s also in Amazon catalog, then the user accesses its page and: i) may consult user reviews and opinions about the product; ii) most importantly, check out price which price is best: the actual shop or Amazon.

Amazing, isn´t it? This is the sort of eBusiness service that will give Amazon Japan an advantage over the competition (we have talked in the past on this very blog about Rakuten), for four main reasons:

1) Amazon will be able to track market trends better and see which products Amazon doesn´t have consumers ask for (hence allowing them to better react);

2) Amazon will all the more competing with Japan´s offline retail stores. The fact that it happens in Japan is extremely interesting provided that the distribution system is extremely opaque there;

3) Thanks to the information gathered, Amazon will be able to devise a better pricing strategy (they´ll get to know better about the competitors´ prices);

4) Consumers will be curious to understand what their neighbour´s doing taking a picture of everything she/he plans to buy and, terribly jalous of their ability to make better purchasing decisions, will also take to Amazon´s new RFID solution.

What Amazon started in Japan really adds value to the consumer experience. Not only does it require little capital to get going, it also generates business!