Amazon is planning to roll out AmazonCare to increase its sales revenue

Glenn

At present, according to the industry watchers it seems that Amazon is getting very thin margins from its Kindle hardware but the company is planning to increase its device sales revenue. This was revealed by GigaOM few days ago in a new report. The application says that Amazon is looking forward to follow Apple’s lead. They are trying to repeat the Mac maker’s success which was achieved through extended hardware protection plans of AppleCare.According to GigaOM , the patent of Amazon and Apple are almost identical but the difference is that this patent of Amazon will be applicable to Kindle products and the services associated with it. The repair, maintenance, troubleshooting services and updating and installation services will be covered under this trademark.

The extended warranties earn bigger businesses in the consumer electronic field. I was a former worker of Best Buy and from my experience I can say that the big items like PCs were available with very thin margin. The real moneymakers are the Product Service Plans that are offered along with accessories. The bottom line that comes from PSPs was never revealed by Best Buy but it is obvious that they are of great importance to retailer’s bottom line.

One of the great jobs that Apple has done is to launch its AppleCare service for their customers. Many of the third parties recommend picking up these services. Apple is facing some allegations in Europe regarding AppleCare. There are some issues regarding the way they will deal with EU regulations to guarantee the customers of basic protection for 2 years on purchase of consumer electronics. Apple is trying to resolve these issues and it is still offering extended warranties in those affected countries but it is different from guarantees offered in U.S and other countries.

Amazon will provide extended warranties for Kindle products in collaboration with a third party called Service net. This offer of AmazonCare will help to add revenue to its device sales with very little cost. Amazon will have to compete with Google in terms of pricing which can offer products at cheaper prices by ignoring the profit margins in order to sale its devices.

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