Amazon Local Register: New Sights on Retail

Amazon is expanding its horizons yet again, and industry competitors should (as usual) be concerned. Already dominating the worlds of online book sales, electronics and pretty much anything else that can be purchased, Amazon has set its sights on appealing to small businesses. How so? In a recent article by Forbes, the company led by CEO, Jeff Bezos, has developed a new product aiming to replace mobile point-of-sale systems offered by companies such as Square and PayPal. According to the article, “over 60% of Amazon transactions take place through independent small and medium sized merchants. This represents millions of successful merchants, many that operate retail stores.”


Amazon Local Register

Unfortunately for Amazon’s competition, many of these small and medium sized merchants give their loyalty to the company with the lowest price. Because Amazon is indeed Amazon, it can afford to offer prices-per-transaction that are lower than their competition’s. According to the Amazon Local Register website, their rates vs. competitors like Square and PayPal are as follows:





PayPal Here

Swiped Transactions

1.75% Limited Time Offer. 2  2.75%  2.7%

Manually Keyed

2.75% 3.5% + $0.15 3.5% + $0.15


As you can see, Amazon’s prices are significantly less than those of its competition. Even after their promotional pricing is over, they expect to set their price-per-transaction rate at 2.5% - the lowest on the market for any devices in the industry.

This is just one component of Amazon’s regimen to dominate the retail market like it did with the online market over the past decade. In addition to Local Register, Amazon offers one-step payment options for merchants. Plus, as the largest distributer of wholesale goods in the world, Amazon has the potential to further their relationship with these merchants far beyond in store transactions.

So, Square and PayPal should most definitely be concerned about Amazon’s moves in the retail market. This is just the beginning.