Dive Brief:
- Amazon has added new products to its digital lock product line, formerly called Amazon Key, now called Key by Amazon, according to a press release.
- The new products include a keyless entry product for garage doors, to be available in the U.S. in Q2 2019, a smart fob to enable deliveries to offices, along with partnerships for customers of Schlage Wi-Fi Deadbolt and the Ring home security app.
- If Amazon Prime Members install a myQ-connected garage door opener, they will be able to remotely grant access to their garages for delivery purposes.
Dive Insight:
Ensuring safe delivery and preventing theft are important steps in increasing orders per customer for Amazon.
In a 2017 survey, 31% of respondents reported having a package stolen in their lifetime, according to the Shorr Package Theft Report. 53% reported changing their plans to receive a package, and 41% refrain from purchasing certain items online — most commonly electronics — because of the possibility of theft. Police in several states are using Amazon parcels as bait to catch thieves.
In urban environments — the initial target of digital lock products like Latch (a partner of UPS) and Key by Amazon — apartment buildings often have common spaces where packages can be left while still facilitating deliveries with a digital lock on the building.
For homeowners though, the option of allowing strangers to enter their homes doesn't sit well. A 2018 survey by InsuranceQuotes found nearly 70% of respondents were unwilling to use Amazon's digital lock, and nearly 80% feared couriers would steal from their homes. It's unclear whether consumers would be more comfortable allowing garage access versus home access.
Package theft isn't the only problem digital locks seek to address. Getting temperature-sensitive items such as groceries out of the elements is also a benefit, and an attractive one, for the company that owns Whole Foods.