New technology could eliminate retailers like Amazon..

[dixiegrrrrl]

mystery platform called PowaTag that will allow people to buy things by simply taking a photo of them with your phone."
is due for release at the end of October.

and

Using PowaTag will sidestep middlemen retailer sites and allow manufacturers to make direct sales. “Normally I’d look at that book and go to Amazon and buy it and they’d get 30% of the retail price,” said Wagner. “It’s a game-changer for manufacturers.”

In other words, PowaTag will be eating Amazon’s lunch, as well as that of any number of low-price online retailers. All manufacturers will have to do, it would seem, is lower their prices to match that competition.

http://www.forbes.com/sites/karstenstrauss/2013/09/13/the-secret-technology-that-attracted-76-million-and-could-eat-amazons-lunch/

The system will allow sellers to get your credit card info directly from your smart phone using thos or similar App,.
http://www.crunchbase.com/company/mpowa

[Pab Sungenis]

1. Just replacing one retailer

with another. You'll be buying from whoever powers this app instead of Amazon, that's all.

[HereSince1628]

17. Well, that could also be said about Walmart...but we know Walmart kills smalltown retail businesses.

You can argue about this being good or bad.

To me this has the possibility of further shrinking the pipeline of available stuff.

I personally think that one of the good things about small town hardware stores, as an example, is that they stored stuff on their shelves. I recognize books aren't dry beans, or snow shovels, or plastic sheeting, or duct tape or bottle water.

But when crisis hits or is in the event horizon, and the cell towers/cable networks are down or probably will be, it is sort of nice to be able to walk to a brick and mortar storefront and get things you need.

[MH1]

2. Most manufacturers aren't set up for direct sales and distribution.

But some are, and others might add the capability if it makes them money.

It will be interesting to see how this plays.

[stevenleser]

3. Hmmm, not sure if that will harm Amazon like the think but we'll see... nt

[CK_John]

4. Too many loose ends, bypass the middleman is one thing but bypass all(include state tax),

not ready for prime time.

[hlthe2b]

5. Amazon is so damned big, it gets incredible discounts on shipping costs...

It is hard to imagine independent sellers achieving that--thereby diminishing a lot of any savings...

[cui bono]

9. True. You can buy direct now in other ways and it's usually the shipping that kills the deal. n/t

[Fumesucker]

6. A big part of the power of Amazon to sell to consumers is the feedback

Looking at the feedback on things you are thinking of purchasing is illuminating.

It will be interesting to see if this technology comes up with something similar.

[ananda]

7. Agree.

I also need to see the good and bad reviews for a product.

[msongs]

8. shipping is the biggest gouge, especially UPS. that will suck up any savings nt

[Egalitarian Thug]

10. "About half the human race are middlemen and they don't take too kindly to being cut out".

[cyberswede]

11. How would you buy something you can't take a picture of?

I browse online for items I don't physically see in stores, or from home, etc.

[bhikkhu]

13. Yes, if you have something to take a picture of

why do you need another?

Or alternatively, you could go into a store and take pictures of things to buy cheap online, but that only works until the store folds up for lack of business (or until they ban photography).

[cthulu2016]

12. This makes very little sense. If manufacturers wanted to retail they would.

The problem with a manufacturer selling directly is that their business is not selling directly. Shipping, customer service, etc..

Manufacturers do not price-compete with distributors/retailers because they would lose a lot of money if they did. (Stores wouldn't see much point in carrying their stuff.

There have been minimal barriers to retailing throughout the internet age, and this advance does not appear to change much of anything except as a form of product search.

[dem in texas]

14. Shopping on Amazon

What if you want to buy three different items from three different manufacturers? If I buy the 3 items from Amazon, many times they will be all in one box. If I buy from 3 different manufacturers, I will have to pay more postage (the first pound is the most expensive and I would paying it over and over). What if I am not happy and want to return the purchase. What if it gets lost in the mail.
Manufacturers will have to incur a lot of overhead to set up customer service depts. Now they ship by the case, if shipping by the individual, they will have to have order pullers to get orders out.

There's more to a buying a product that just looking at a stock picture.

[FarCenter]

15. Usually you are willing to buy something a little different for a different price

People are going to pay Manufacturer's Suggested Retail Price?

What you want is to see similar products at various prices and discounts from various sources.

You can buy off manufactures sites today if you want to pay full price.

[Motown_Johnny]

16. If I am able to take a picture of something I want to buy,

I tend to be able to buy it without going online.

Not always, but most of the time.

If I want a new winter coat, and am able to take a picture of the one I want.. guess what.


Am I missing something or are the logistics of this thing an issue?

[dixiegrrrrl]

18. Lots of good questions for the folks who are supporting the idea, to be sure.

There are actually 2 ideas being 'sold" here..
one is the photograph and buy
the other is the app to the smart phone which allows instant payment via info. on the smart phone, the app makers getting a cut of the price each time.

So the over all idea is using smart phones to buy, and pay for, an item and how to make $$$ from the idea.

Now, there are lots of stories of people window shopping for an item in a retail store, then going online to find a better price.

I get the feeling a few intermediatery steps have not been addressed yet.

[Motown_Johnny]

20. Then a variation on scanner apps might be the way to go.

I think Red Scanner is one of the most popular but I have a couple others on my phone too.

If you go to the store to see something up close and personal with the intent of buying it online then the easiest thing to do is to scan the bar code of the item you want.


Some simple connection between a Pay Pal account and a scanner app it all that is really needed. If Pay Pal came out with a scanner app that searched eBay first, they might just corner the market on this new technology.

[FreeJoe]

19. I'm just not seeing it

Manufacturers already have the ability to sell direct. How would this make much difference? It sounds like PowaTag would just be another retailer looking for their cut. What makes you think they would be more efficient that Amazon?

Another problem is that if manufacturers sell direct, they usually do it at list price to avoid angering their non-discount retailer network. If you are Joe Retailer and you have a choice of stocking product from several vendors, why would you choose the one that is trying to undercut your pricing?

Sounds like the article is a paid advertorial.