Amazon Launches Controversial 'Dash Button' For Instant Orders

Amazon.com Inc's (NASDAQ: AMZN) constant striving to provide convenience for its customers took another innovative step this week as the company launched its new Dash Button service. The device, which is a physical button that is shipped to eligible prime members along with a hook and adhesive, is connected through the Amazon App via WiFi. How it worksEach Dash Button is tied to a specific brand, such as The Proctor & Gamble Co's (NYSE: PG) Tide or Gilette brands or Kimberly-Clark Corp's (NYSE: KMB) Huggies brand. (http://www.reuters.com/article/2015/03/31/us-amazon-hardware-idUSKBN0MR2G920150331) The button serves as a physical representation of Amazon's 1-click ordering feature. Amazon's official Dash Button site urges users to "keep Dash Button handy in the kitchen, bath, laundry, or anywhere you store your favorite products." (https://www.amazon.com/oc/dash-button)Once customers set the device to the product of their choice, one press of the Dash Button will instantly order the pre-determined product.How to get your own Dash ButtonUnfortunately, the preliminary roll-out of Dash Button is available only to selected Prime members who have been notified by email. Selected Prime members that are chosen are currently limited to three buttons, but they are shipped to members completely free of charge.Is there reason for skepticism?The timing of the launch of the controversial Dash Button, one day before April Fools' Day, has led to speculation that the button could simply be a prank on the part of Amazon. However, according to Amazon spokeswoman Kinley Pearsall, a confirmed living, breathing employee of Amazon, (https://www.linkedin.com/pub/kinley-pearsall/5b/7b8/932) the Dash Button is very real. (http://www.latimes.com/business/la-fi-tn-amazon-dash-button-20150331-story.html)Innovative solutionsEarlier this month, Amazon was cleared by the FAA to begin test-flights of drones in U.S. airspace. (http://www.benzinga.com/news/15/03/5343022/faa-clears-amazon-for-flight-whats-next) The Dash Button appears to be simply the latest idea in Amazon's constant search for innovative ways to use technology to increase its operational efficiency.Disclosure: the author holds a short position in Amazon.