A simple phrase and pin code may be all you need the next time you pay for that book or CD at Amazon.
The online retailer on Thursday debuted a new feature called Amazon PayPhrase, designed to let busy shoppers store their name, address, and payment information in a single phrase and pin code. Instead of entering all that data at the online checkout counter, you type your phrase and pin number when it's time to cough up the cash.
PayPhrase doesn't just work at Amazon--it can be used at any online retailer that lets you pay via Amazon Payments. That covers a range of cyberstores, including Buy.com, J&R Electronics, DKNY, and Car Toys.
PayPhrase also omits the need for a user name and password to store your personal info on every shopping site that uses Amazon Payments. However, you will need an Amazon.com account to set up and maintain your phrase.
Amazon sees PayPhrase as a benefit to consumers trying to juggle different accounts at different retail sites.
"PayPhrase solves the headache of trying to keep track of all the different user names and passwords people use to shop on various sites across the Web," said Matt Williams, general manager of Amazon PayPhrase, in a statement. "With PayPhrase all you need is one phrase and one PIN to pay online."
Here's how the process works:
- You first set up your PayPhrase. The phrase can be two or more words, and the entire phrase must be at least four characters but no more than 100. Amazon provides a list of suggested phrases, or you can create your own. (With Amazon's suggested phrases of "Unusually Obese," "Contraceptive Cream," and "Bush's Education Department," you might want to create your own.) Since everyone's PayPhrase must be unique, Amazon will tell you whether or not your phrase is taken.
- You set up your four-digit pin number.
- You enter your Amazon.com user name and password.
- You either confirm or enter your mailing address and credit card information.
- After your PayPhrase is set up, you'll receive an e-mail from Amazon confirming the details.
- The next time you check out to buy an item on Amazon or an Amazon Payment retailer, a field for PayPhrase Express Checkout will appear. You enter your phrase. You then review your order details and total cost and finally enter your pin number to submit the purchase.
Of course, a feature like this always shouts out one question: Is it secure? Amazon naturally believes so.
Though Amazon stores your credit card information, the company points out that your payment information is not shared with other online retailers. And to modify your PayPhrase settings, you have to log in to the PayPhrase site with your Amazon.com username and password.
You can establish monthly cash limits on your account ranging from $10 to $500. Finally, you can opt to receive an approval request by e-mail or cell phone for all orders that are placed.
Check out Amazon's promo video page for a brief tour of PayPhrase.
You wouldn't know there's been a slowdown in consumer spending by looking at Amazon.com and Netflix.
Both companies have continued to grab customers at a record pace, leading to higher earnings and sales for their third quarters.
Net income for Amazon jumped 68 percent to $199 million, or 45 cents a share, in the quarter that ended September 30, compared with $118 million, or 27 cents a share, in the prior year's quarter.
Sales rose 28 percent to $5.45 billion versus $4.26 billion in 2008's third quarter, the company said Thursday.
Amazon's stock shot up $23.75, or 25 percent, to $117.29 in Friday trading.
Amazon's two-year stock chart.
(Credit: Yahoo Finance)Amazon attributed its earnings to several key factors.
Chief Financial Officer Tom Szkutak said Thursday in a conference call with reporters that consumers continue to spend at Amazon because of its low prices and large selection. The company noted that it had 98 million customer accounts by the end of the third quarter, 17 percent higher than a year ago.
Worldwide sales from books, CDs, DVDs, and other media grew 17 percent to $2.93 billion, while revenue for electronics and other general merchandise soared 44 percent to $2.36 billion.
Another solid driver for growth was the Amazon e-book reader, Kindle.
"Kindle has become the No. 1 bestselling item by both unit sales and dollars--not just in our electronics store but across all product categories on Amazon.com," Amazon CEO Jeff Bezos said in a statement. The company did not release specific sales figures for the Kindle.
Amazon managed to clobber analysts' expectations. J.P. Morgan had forecast earnings per share of 31 cents on sales of $5 billion. Broadpoint.Gleacher analyst Ben Schachter had been eyeing earnings per share of 33 cents and said that sales were 7 percent higher than he expected.
In a report, J.P. Morgan said Amazon's strong sales growth shows that the company is grabbing significant market share from other e-commerce players, such as eBay.
In his report, Schachter called the results "phenomenal." He noted that Amazon was able to keep its costs in check while gaining market share in virtually every product category. The analyst also said he was "shocked" to hear Bezos' statement that the Kindle has become the company's top-selling item.
For the current quarter, Amazon is looking for sales of $8.13 billion to $9.13 billion, 21 to 36 percent higher than last year's fourth quarter, and racing past analysts' estimates of $8.11 billion.
Collins Stewart analyst Sandeep Aggarwal said in a report that improving e-commerce trends and continued growth for the Kindle, among other factors, could make Amazon the fastest growing large-cap Internet stock.
Another beneficiary of solid customer growth, Netflix also surpassed analysts' expectations for the third quarter.
The company's earnings jumped 48 percent to $30.1 million, or 52 cents a share, versus $20.4 million, or 33 cents a share in the prior year's quarter. Sales grew 24 percent to $423.1 million, compared with $341.3 million in 2008's third quarter.
Overall, analysts had been expecting earnings of 46 cents per share on sales of $420 million.
Growth in subscribers was the key driver for Netflix in the third quarter. The company ended the quarter with around 11.11 million subscribers, a 28 percent jump from the 8.67 million subscribers at the end of 2008's third quarter. Of the current total, 98 percent, or 10.84 million, were paid subscribers, while the remaining 2 percent were free subscribers.
"Our business momentum is strong and our third quarter performance keeps us solidly on course for a record 2009," Netflix co-founder and Chief Executive Officer Reed Hastings, said in a statement.
Though most Netflix customers still prefer to get their movies by conventional mail, Internet streaming has gradually taken off. In the third quarter, 42 percent of Netflix subscribers streamed at least 15 minutes of video, compared with only 22 percent in the prior year's quarter.
Customers can stream their Netflix picks not just through the PC but via gadgets like Microsoft's Xbox 360, which has helped attract new customers.
Now Netflix has reportedly struck a deal to add streaming to another device, which Hastings said is already in people's homes. Though the company has been mum about details, analysts believe it may be a video game console made by either Sony or Nintendo.
Netflix shares were up $4.58, or 9 percent, to $54.22 on Friday.
For the fourth quarter, the company believes customer growth and sales will be higher than anticipated three months ago. Netflix now expects to end the current quarter with 12 million to 12.3 million subscribers, up from the prior estimate of 11.6 million to 12 million. That would represent an additional 900,000 to 1.2 million customers.
Fourth-quarter sales are likely to reach $440 million to $446 million, up from the previous estimate of $431 million to $445 million.
However, the company forecasts a downturn in earnings from the third quarter, eyeing fourth-quarter net income of $21 million to $26 million, or 38 cents to 47 cents a share.
Expenses may be one factor affecting current earnings. Hastings said the company expects to spend more on marketing and licensing fees for Internet streaming. Netflix also believes its postal costs will continue to grow, surpassing $600 million next year and $700 million in 2011.
Thursday's launch of a games trade-in program by Amazon.com has already begun to make waves in the games resale business. Shortly after the program was announced, competitor GameStop's stock took a dive, dropping nearly 14 percent by end of day Thursday.
As a follow-up to the announcement, GameStop's CEO Don Matteo went on the record telling Edge Online he had no faith in Amazon's model based on his company's earlier attempt at a similar program. Matteo was, of course referring to sister site TradeStop. Back in 2005 the site featured a similar offering, where users could get cash for games which the company would then turn around and re-sell on GameStop.com. The service also let people send in DVD movies and music CDs. GameStop discontinued the program at the end of 2005.
Strengths
Amazon is bringing something to the table that brick-and-mortar game resellers cannot easily match: Gamers who send in their used titles can spend their Amazon credit on things that aren't video games. For people who are selling games for a system they no longer have or use this is a clean break. It's also a chance for Amazon to make some extra cash when a user buys something that costs more than the credit they earned.
Another thing users may flock to is transparency. Amazon is showing users exactly what it will pay and has made this list able to be searched. Both GameStop and Game Crazy, two of the largest game resellers, offer no such feature on either of their sites. Instead you're limited to a list of hot games or promotional trade-in values, or you have to go into the store to find out the game values. Both companies will mail larger trade-in value lists, but the lack of an online system has led to users creating wikis to chronicle the ever-updating prices that can fluctuate by supply, demand, and retail price drops.
There's no special membership program. Both GameStop and Game Crazy have special memberships that its customers can join to get special discounts or receive a higher trade-in value for their games. Amazon doesn't offer this, which some may find appealing. Amazon pays everyone the same price in return for them logging-in with their Amazon.com account credentials. There's no annual fee, and the cost of shipping your games in is free.
There are no up-sells or pushy salespeople. You never have to talk to a human being in the entire exchange, which can be seen as a step up. Games retailers typically push paid membership programs, game pre-orders, and certain titles based on sales deals or events. For someone trying to offload their games and buy something new Amazon is letting you skip this.
... Read more
(Credit:
Amazon)
Amazon.com on Tuesday launched its first foray into digital downloads for games. The new online store offers more than 600 casual titles without the need for physical media. Amazon says all the titles at launch are under either $6.99 or $9.99 with older titles leaning towards the lower end of the spectrum. As an added promotion, the company is giving away three free titles, which gamers have a week to scoop up before the prices return to normal.
The launch comes just a little over two months since Amazon acquired Reflexive Entertainment, a casual-game service that is still selling titles with its own DRM solution and store front. In Amazon's case, purchased games must be downloaded with a special download tool similar to what's required to grab music tracks from the company's MP3 service. The games then phone home the first time you launch them to verify the purchase information.
Each game can be played for 30 minutes as a timed trial before the need to purchase. This model directly competes with that from Yahoo Games and to a certain degree Valve's Steam service, although unlike Valve, Amazon is not yet offering a download service for larger AAA titles from major publishers.
The service is PC-only for now, which is mostly a limitation from game developers who don't offer the titles on computers running OS X or Linux. However, a Mac version of the store is likely in the works.
Remember Sony and Microsoft? No? Well, neither does the average Amazon customer.
According to a release sent out by the online retail giant Friday, the Nintendo Wii and all its accessories dominated video game sales during the holiday shopping rush and not one mention was made of Sony's Playstation 3 or Microsoft's Xbox 360.
"Nintendo Wii dominated the top sellers in video games and hardware, including the Wii console, the Wii remote controller and the Wii nunchuk controller," the release reports.
What about all its competitors? Have they somehow entered the realm of irrelevance?
I'm starting to wonder if they have.
... Read moreDon Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.
Amazon.com has acquired Reflexive Entertainment, adding to its PC, Mac, and online casual game offerings.
Reflexive, which announced the acquisition earlier this week in a blog post by Chief Executive Lars Brubaker, said the deal will provide a larger distribution channel than it previously had.
Reflexive also noted that game developers can still submit their work to the site and will continue to have access to its GameCenterSolution.
Terms of the deal were not disclosed.
More than 2,200 one-star reviews of the new Electronic Arts game Spore, left on Amazon.com as part of a well-publicized and coordinated user revolt against the game's digital rights management restrictions, disappeared Friday.
Before Amazon.com took down the reviews, there were more than 2,200 one-star reviews for 'Spore.'
(Credit: Flickr user TINZ)And while Amazon customers reacted angrily to what they said was obviously Amazon's caving in on a bad situation, the retailer itself said that the take-down was the result of nothing more onerous than a glitch.
Users have been angry at EA because the game's DRM system appears to limit the number of activations per copy of the game to three.
And as a way of striking back, some users had coordinated their efforts by leaving the more than 2,200 one-star reviews on Amazon.
On Friday, every single review for Spore for the game was gone.
But Amazon says there was no foul play at work.
After users of the new Electronic Arts video game, 'Spore,' revolted against its DRM restrictions by leaving hundreds of one-star reviews for the game on Amazon.com, the online retailer temporarily removed all reviews for the game, though it claims the move was nothing more than a 'glitch.'
(Credit: Amazon.com)"There's just a glitch on the site that ended up wiping those reviews clean," said Amazon.com spokesperson Tammy Hovey. "So we're working on putting them back up. I don't have any details (on what happened). But we're working on it so all the customer reviews will be back up on the site."
Asked if perhaps Amazon had decided to put the reviews back up in anticipation of bad PR for taking them down, Hovey said, "Customers always have their opinions about all the products on our site, and we don't censor them, whether they're favorable or unfavorable."
By 2:10 p.m. PDT, the reviews were back up on the site.
For its part, EA said it was looking into the situation.
Although the actual reviews were removed, Amazon did leave up a discussion thread on the Spore page. And during the period while the reviews were down, some users angrily employed the thread to paste in reviews that had originally been left for the game.
For example, "1.0 out of 5 stars Dumbed down experience and draconian DRM, September 7, 2008," Amazon user Keri Gibson-tutt posted.
"Utterly disgraceful," wrote Amazon user Paul Tinsley. "This means that the Amazon review system has not value at all to its customers. Sad days indeed."
It's not clear how users will respond now that the reviews are back.
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