It’s January 16, 2022 and this is the Watson Weekly - your essential eCommerce Digest!
Today on our show:
- Target Stock Downgraded by Wells Fargo
- Bed Bath and Beyond Could Go Out of Business Soon
- Fanatics Divesting its 60% Stake in NFT Firm Candy Digital
- Amazon Launches Buy with Prime This Month
- and finally, The Investor Minute, which contains 8 items this week from the world of venture capital, acquisitions, and IPOs.
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I think Buy with Amazon will create some significant challenges for retailers who have to deal with European style data protection rules (i.e. GDPR in EU or UK flavours). Very much a mixture of who is the owner and who is the processor between you and Amazon. I presume that customer will have to have a US Amazon account to participate to help simplify this, you wouldn’t be able to shop a US D2C with Buy with Amazon using e.g. an Amazon.co.uk or Amazon.de account.
Certainly complexities to work through–can you have a guest shopping experience with Buy with Amazon? If so, you don’t have consent for marketing, and no easy place to put that consent nudge (or registration nudge) in the usual flow. Best you can do it put a very “bare” consent nudge in your transactional emails (“order confirmed”, “shipped” etc.). Get this wrong and you can be liable for fines of up to 4% of global turnover (although actual fines to date have been more proportionate to the offence).
Unlikely Buy with Amazon will come to UK/EU until this data protection complexity is worked out, especially with reference material from Amazon stating their position legally.
Buy With Prime may never come to Europe, it’s totally possible.
I don’t feel guest checkout is an option, because Amazon would not be able to validate Prime membership which is the whole idea.
What do you think?
Ah, but that’s Amazon’s consent, not the retailer’s. I don’t think retailer can market direct to customer based on that consent to Amazon, it needs a specific consent owned by the retailer.
For GDPR, you have to have both consents (precedent is PayPal).
You don’t need a PSP consent for traditional payment because you consent to the retailer (data owner), and that consent governs the processors that the owner chooses to use (owner taking liability for privacy issues in their processors).
And for guest checkout, I was thinking guest in retailer’s website but you have to authenticate to Amazon (using Amazon credentials) to make Amazon Pay work (similar to PayPal, lots of websites allow guest checkout with PayPal).
Its highly likely that Buy with Prime only stays in the US and potentially goes to India.
That would be fascinating Hendrik