Hershey has become the latest FMCG company to look to sell a brand through Amazon Dash, the e-commerce giant's at-the-touch-of-a-button re-ordering service in the US.
Consumers can now buy the confectioner's Ice Breakers mints by pressing a Dash button, which then alerts Amazon to deliver the product. So far, only 29 consumer packaged goods brands are using the service, which was launched earlier this year. Of those brands, six are food products – Ice Breakers, Mars Inc's Orbit gum, Kraft Heinz Co.'s Kraft Mac & Cheese, General Mills' snack bar brand Larabar, Glanbia's Optimium Nutrition whey protein and Nestle's Gerber infant formula.
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"The opportunities are endless – that’s one of the greatest things about the Amazon Dash buttons. Our Ice Breakers brand does extremely well on Amazon with young adults – the top consumer segment to visit Ice Breakers pages are people between 21- and 24-years-old so we see it being great for dorm rooms, apartments or at the office. Also, repeat order rate for Ice Breakers is very high on Amazon.com making it perfect for the Dash button initiative, which is all about convenient re-ordering," Bill Blubaugh, senior director for sweets and refreshments at Hershey, told just-food. Hershey said the repeat order rate for Ice Breakers via amazon.com stands at 31%, more than double the average for its other brands.
Denise Vivas, Hershey's director of e-commerce, said Hershey pays a fee to Amazon to use the service. "Having a strong relationship with Amazon has given us the opportunity to participate in their most innovative initiatives, and we are thrilled to be among the brands available through the new Dash button. We continue to expand our partnership with Amazon as the opportunity for confection and snacks in the e-commerce channel grows exponentially – we expect online grocery sales to surpass US$80bn by 2020. It's exciting to be at the forefront of delivering beloved treats to consumers online."
The buttons are available only to members of Amazon's membership service Amazon Prime. "Amazon is incentivising Prime members to purchase buttons by offering a $4.99 account credit for every $4.99 spent buying a button, so they are essentially free," Vivas added.
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