Amazon gives away millions in virtual money with launch of Amazon Coins
Amazon has launched its virtual currency, the Amazon Coin, with the goal of expanding the sale of their digital content. As a promotion, they’re giving $5 worth of coins to Kindle Fire customers.
Today, Amazon launched it’s take on virtual currency, the Amazon Coin, and as a promotion, it offered 500 free coins to every Kindle Fire customer. The coins, which can be used for buying games, apps and in-app purchases, are worth about one US cent, meaning 100 will give you a dollar. Buying coins in bulk however, will give you a discount and you can get 10,000 coins for $90. At this time Amazon Coins are only available in the US and obviously only can be used to for making Amazon purchases.
The Amazon Coin can be used for digital purchases through Amazon
Amazon announced the virtual coin back in February, and is using them to increase the sale of digital content within Amazon. Of the15 business highlights Amazon released in its recent quarterly report, 12 were about digital purchases. Since such purchases don’t require packaging, warehouse storage or delivery, they give Amazon a huge return on their sales.
One interesting side note to this story is that it had given us an estimate to the number of Kindle Fires sold. Amazon has never disclosed that number, but they have stated that the Amazon Coin promotion will involve giving away “tens of millions of dollars” worth of virtual currency. Since every Kindle Fire owner gets 500 coins, or $5 worth, it gives us an idea of how many of Kindle Fires have been sold.