Amazon One-Click Patent Worth Billions Expiring in 2017

August 24, 2017
Amazon One-Click Patent

Recently you may be hearing a lot about Amazon one-click patent expiring very soon. Now, what exactly is this one-click patent which has made Amazon as the most preferred shopping destination worldwide?

This one-click patent was granted to Amazon in 1999 and eliminates frictions while buying products online.

To Explain in Detail….

You must be very well aware that, Amazon facilitates its customers to checkout with one-click if their address and payment details have been stored already. The online buyers don’t have to search for their credit/debit card in their wallet while shopping on Amazon. This is just due to one-click patent technology which is not being provided by other online stores as this patent was granted to Amazon only.

It saves the time of customers and gives them a comfortable shopping experience as they can shop online even while driving or performing some other task. This makes Amazon a highly preferred online shopping destination.

Now, when Amazon’s one-click patent is expiring, as an online retailer, you can benefit out of it. To know how we need to first go through some of the intricate details of this patent technology….

How Valuable is Amazon One-Click Patent?

As you know, this patent adds speed to the buying process, it makes people make quick buying decisions and thus the sales accelerate over Amazon. As per the statistics, the sales on Amazon increases 2% every year due to this one-click facility. The net income of Amazon in 2016 was $2.4 billion.

So, you can now imagine how much importance does this one-click patent hold for Amazon.

But, Wait a Minute…..There was a Controversy Prevailing Due to this Patent.

All these years, Amazon is enjoying the benefits of this one-click patent. But, the fact is that – achieving this one-click patent was quite a difficult path for Amazon.

Canada had refused to award this patent to Amazon. After fighting a legal case and winning, in 2011 Amazon was issued this patent. This simulated Canada to work on their patent guidelines to be followed in future.

Similarly, European Union also refused to issue this patent to Amazon as they deemed it to be “too obvious” and reformed that Amazon is setting cookies which any other retailer can do to achieve the results worth appreciating.

Not only Canada and Europe, Australia was also against issuing the one-click patent to Amazon as they didn’t take it as a justified act.

Despite, these controversies Amazon was able to take maximum benefit out of it as no other online retail store had that one-click checkout facility except Apple.

Apple Taking Advantage of Amazon’s One-Click Patent

Apple realized that Amazon’s One-Click patent was very useful as it was generating more revenue for Amazon. So, Apple incorporated this technology in iTunes, Apple Store, and iPhoto. Apple got licensed with the One-Click patent in 2000 through Amazon by paying some undisclosed amount of money to Amazon. Apple knew that by downloading iTunes apps with a simplified checkout process, would yield them more business and increase their profitability.

One-click Checkout – The Biggest Opportunity for Online Retailers

When Apple and Amazon are gaining out of this superb patent technology, why should you be deprived of it?

As one-click checkout process saves the buyers from payment errors, tedious multi-page checkout hassles, etc., shouldn’t it be used by you too? It is obvious that everyone would like to take advantage of this technology and grow their business.

Despite, Amazon being unwilling to share this technology, they are ready to partner with other online retailers in lieu of a price. But, it is not at all convincing that you need to pay the price for the technology which should be available free of any charges, for all the online retailers.

It may be a good news for you that Amazon’s One-Click patent is expiring, but is a bad news for Amazon.

So, before you start planning to incorporate this one-click technology in your online store, you need to know Amazon’s next move to overcome this challenge, so that you can compete in a smart manner.

Is Amazon Prepared for this Change?

Now, as Amazon (the giant marketplace) is losing this one-click patent, it has to prepare their marketplace for the change to retain the monetary results they have been achieving all these years.

“Amazon’s one-day delivery can be another probable reason of its leading the eCommerce market. ”

It is not at all surprising that Amazon has already prepared itself for this change by investing billions to improve its logistics in order to provide quick delivery. Most of the time, the consumers ordering online expect the online store to deliver them the product as soon as possible. Amazon has overcome this challenge by strengthening its fulfillment services and is already leading the online retail market due to its one-day delivery facility.

So Now What Comes Next?

Still, being a smart online retailer, this calls for an opportunity for you. Especially, when the holiday season is just around the corner, you can also provide quicker and easier way to checkout by using one-click patent technology and at the same time enable quick fulfillment and delivery process on your store. So, what are you waiting for? Just plan smart holiday marketing campaigns considering one-click patent technology as a huge opportunity and enable growth of your online business.

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