Amazon’s Android Appstore: An App Marketing Tool?

Amazon, the world’s largest online retailer, is now selling Android apps through a newly created Amazon Android Appstore. This provides some interesting opportunities for developers and consumers and may greatly the way that Android users find and purchase apps.

Consumer Perspective on Multiple App Stores:

Google’s current app store is messy. In fairness, so is Apple’s and even Microsoft’s. None of them have really anticipated the growth that their app stores would receive, and so it has become a very messy place to find good products. Google’s store is specifically messy because there are almost no barriers to entry and just about anybody can post anything. Apple and Microsoft at least curate the market somewhat which limits the garbage.

However Amazon has extensive experience in selling hundreds of thousands of products in a clean, clear and effective manner, which they have used in the design of their app market. In addition, Amazon provides the ability to effectively search the Appstore from a web browser, to adding recommendations and extensive descriptions (including multiple pictures and video).

For consumers, this may become a way for them to rise above the garbage and the noise and find quality apps through a semi-curated market. Of course there are great apps (and the same apps) in Google’s store, but with over 200,000 apps in the market (300,000 in Apple’s store) good apps are sometimes hard to find, and new apps tend to get lost in the crowd.

The problem for consumers is that Verizon, Motorola, and a few others are also planning their own Android app stores. While one or two extra stores might be good, it becomes a detriment after too many stores are added.

The biggest potential issue for consumers is fragmentation and exclusivity. This can be good, as some app stores may just focus on a particular niche of apps (such as the independent "Adult" app store for Android), but can also be bad as in some cases consumers must search each store before they can find what they need. Or in other cases, app stores may battle for exclusive rights to the most popular apps (such as Amazon’s exclusive hosting of the newest Angry Birds game).

On the other hand, Amazon’s approval process helps select only "the best" apps, which may actually be a good thing for consumers as it pre-sorts out all the junk. Though from an app developer perspective, it is probably best to post your app in both stores even though that means paying another $99 annual registration fee.

A Developer Perspective on Multiple App Stores

Amazon provides a few bonuses that Google’s Android Market does not. Mostly this includes the ability host your app on Amazon.com and do a lot more on-site marketing, as well better content protection through Amazon’s DRM, which is an optional – but easily included – addition.

The DRM (digital rights management) tool allows for one-time verification that users have "legally" purchased the app. It performs the verification the first time that the app is started and downloads a validation code that allows the app to function properly thereafter, so that users do not need to re-validate after each app use.

This helps prevent users from stealing or copying an app from other places. Of course, the actual market for hacked apps is really quite small, but some app developers and publishers prefer it and so Amazon has provided it as an option.

The other benefit is the enhanced mobile app marketing tools, including the ability to market your app on Amazon.com. The website has integrated the Appstore into the website as a "department", and then subdivided the Appstore into three sections: Apps, Games, and Free Amazon Apps. The Free Amazon apps are basically a featured selection of apps by Amazon and others.

Amazon’s Appstore also takes advantage of Amazon’s famous cross marketing. In addition to reviews, the site also adds a cross promotional elements as "related to" which shows similar apps, as well as a "people who bought this also bought…" section.

Another benefit is the ability to provide an expanded description for apps, including more images, video and other information, as well as the ability for users to browse the store through a desktop browser and not just through the Appstore on the phone.

There are two downsides for developers. First is the $99 annual registration fee, which is not a major expense compared to the overall development cost, but is none-the-less an annoyance. However, by considering it as a marketing expense, it may pay itself back quickly.

The other downside is the approval process, which may be a new experience for Android app developers. Amazon’s rules for acceptance into the store are pretty clear, but with the launch of a new Appstore it is sure to be backlogged with apps waiting approval. Apple’s App Store saw the same problem and approval times are usually only a few days, but it can still be a frustrating wait for developers.