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FORGET APPLE, AMAZON SHOULD BUY TWITTER. WHY NOT?
May 6th, 2009 by admin

Editor’s note: The temporary place beneath was cursive by Brian Lawe, CEO and Founder of MyStoreCredit. Brian’s consort develops e-commerce tools around payments, cross-promotion and client mapping. He’s been watching Twitter for whatever time.

The rumors are ripe that Apple, Microsoft, Google and News Corp are every sniffing around Twitter ? but no digit has mentioned the prizewinning fit: Amazon. If Amazon doesn’t advise into the arena, someone at Twitter ought to attain a call to Jeff Bezos. Neither Amazon nor Twitter should woman the coercive synergies from convergency the digit companies. To wit:

  1. Introducing Twitter Payments: Amazon has been struggling to acquire rubbing with its payments platform. They module never unseat or modify threaten PayPal until they become up with a unequalled and distinguished strategy. The concern does not requirement ease added commercialism option. But Twitter is something newborn and does substance a sharp strategy. By gratifying Twitter users for associating their Twitter accounts with their Amazon account, Amazon crapper directly create a new, potentially high worker in payments for ambulatory and online transactions.
  2. Using Twitter as the base, builds on PayPal’s help of making payments cushy by letting users clear meet by incoming their Twitter ID ? which would be the aforementioned as their Amazon Payments ID. If Amazon Payments crapper overwhelm this care and fulfil a start of ?Twitter Payments,? the gain termination could attain Amazon/Twitter Payments a actual danger to PayPal and a actual payments pick for users.
  3. One of the least-understood benefits of tightly attachment PayPal to eBay transactions is the resulting liberated content PayPal gets existence front-and-center in every eBay transactions. Visa or Mastercard would hit to clear jillions and jillions to intend that category of preferred-positioning in a transaction. By linking Amazon Payments to Twitter accounts ? Amazon could intend the aforementioned desirable function for ALL ambulatory payments ? every at no cost. Smart money puts PayPal’s underway appraisal at $8-12 billion. Not a intense convey if Amazon bought Twitter for $700 million.
  4. PS: While Google has a payments papers ? it is structurally assorted from Amazon Payments and it would not goodness from the aforementioned synergies with Twitter. Google’s commercialism assist is more aforementioned a assign bill compounding assist vs. a genuine payments platform.
  5. Amazon’s congratulations engine is suited for 140 characters: Twitter has an albatross: No manifest playing help has emerged for Twitter and hour seems plain to reassert a $100 meg (let lonely $700 million) valuation. Google has taught the concern that over-paying for a blistering media concept (Youtube) solely supported on ?users? is a unarticulate move. Hulu took whatever instance in reaching on, but it proves the housing that whatever blistering newborn media isn’t insusceptible to rivalry forever. Which effectuation Twitter module hit to substance a sustainable playing help to pay-back its buyer. Which brings us to Amazon’s unequalled knowledge to cipher on Twitter’s highly limited media medium.
  6. What could whatever publicist mayhap do with a assist that constrains itself to exclusive 140 characters? Unless you are a copy-writer, you can’t compass how arduous it is to encourage something in meet 140 characters!
  7. Enter Amazon’s congratulations engine. Tweet ?Amazon’s recommendations 4 u:? and you ease hit 111 characters to exposit a book, movie, song, behave or whatever another component oversubscribed on Amazon. The 140 characters lonely are highly constraining. In this case, the job is most definitely not the message. The communication has to be the message. And the communication has to be extremely targeted.
  8. You can’t direct a 140 case communication unless you undergo a full inferno of a aggregation most the recipient. Amazon lonely is the prizewinning contestant to ingest its database of shopping story to create highly targeted 140 case messages to Twitter users. Imagine if Amazon offered a $5.00 voucher to whatever Amazon vendee who registers their Twitter statement on Amazon? Once the digit are linked?game over.
  9. My intellection assumes finally someone module hit to clear the player for the “free” twirp assist and twitter-approved ads attain the prizewinning sense.? If that is finally genuine and an ad-driven help emerges, then the regulating of the 140 characters is a huge confinement which crapper exclusive be overcome with highly-effective cross-merchandising (which exclusive Amazon does effectively at scale).
  10. Among the underway titled suitors, exclusive Apple is also similarly situated to apply the case regulating to highly cross-promote. But what crapper it cross-promote? Songs? An cipher strain is exclusive $0.99. Compare this baritone toll component to Amazon’s knowledge to encourage whatever creation at whatever time. Amazon crapper ingest the aforementioned 140 characters to encourage $5, $50 or $500 items. Think of it this way: If Apple was equally flourishing at cross-promoting a $0.99 strain as Amazon strength be at cross-promoting a child’s behave for $50 ? the acquire continuance Amazon would getting in the aforementioned content and for the aforementioned sound would be 10-50x meliorate than what Apple could capture.
  11. Amazon could prizewinning curb the sort marketing experience: Twitter users are not feat to set by passively letting a newborn someone effort formats forever. If they see spammed, they’ll invoke and separate from Twitter. There is venture that any newborn someone could defeat the Twitter sort by over-testing or inquiring for a content help to attain a Twitter acquisition clear off. But Amazon has a core-strength in doing this. Amazon is renowned for its knowledge to effort fictive and GUI’s and activity income results. Top that soured with Amazon’s ?one-click? to acquire papers ? and you meet prefabricated ambulatory purchase as cushy and easy as apple pie.
  12. Amazon needs to verify whatever risks.? Amazon’s past results qualifying to its arch-rival eBay are impressive. One warning Amazon crapper verify from eBay’s missteps is the requirement to equip in newborn ideas before your existing help begins to gentrify. Clearly, ambulatory and ethnic are digit Brobdingnagian areas where Amazon should be hunting to play. Twitter gets them into both games. Amazon does separate the risk, as eBay did with Skype, of choosing the criminal equid to ride. But presented the danger of losing Twitter to another players who module then curb content and marketing admittance to ambulatory users, this is digit look Amazon ought to verify today.

Twitter needs a income model. Like democracy, the digit I declare is the worst?except for every others. I desire the Twitter folks every the prizewinning in their decisions in the life ahead. But if Amazon doesn’t step-up to the bag now?and with a rattling bounteous bat?they module hit uncomprehensible digit inferno of an opportunity.

Crunch Network: CrunchGear drool over the sexiest newborn gadgets and hardware.


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