When executives at manufacturer Munchkin Inc. heard that Amazon.com Inc.’s patent on one-click checkout would expire last September, they were thrilled. It wouldn’t be long before they developed their own version of it, they figured.
“We were well aware of the patent expiring and were working on a one-click checkout design and how to use it,” says Jonathan Bradbury, director of global e-commerce for Munchkin, a manufacturer of children’s feeding and care products.
And with Magento Inc.’s announcement yesterday that the e-commerce technology vendor was launching its own version of one-click checkout, Munchkin’s mood peaked. “We were ecstatic,” Bradbury says. “The timing couldn’t be better because we are transitioning our websites to the Magento 2 platform. Now we don’t have to figure it out on our own.”
One-click checkout fits into Munchkin’s quest to make doing business with it as easy as possible and to provide unique, quality products, Bradbury says. Munchkin plans to implement Magento’s one-click checkout technology, called Instant Purchase, in the first half of next year, he says.
Munchkin, which sells to retailers, distributors and consumers on its website, Munchkin.com, will roll out the one-click technology along with the Magento platform upgrade to its global websites. In addition to its U.S. e-commerce site, Munchkin has sites serving eight countries: Australia, China, France, Germany, Netherlands, New Zealand, Spain and United Kingdom.
Magento developed the Instant Purchase feature in conjunction with web development services provider Creatuity Corp., and it is now part of the latest versions of Magento Commerce and its free Magento Open Source. Existing Magento customers can acquire the one-click tool when they upgrade to the newest versions, says Peter Sheldon, Magento vice president of strategy. Magento Commerce, formerly known as Magento Enterprise, is licensed software designed for large companies and starts at about $20,000 per year. Magento Open Source, formerly known as Magento Community Edition, is available for no charge and includes access to its core software code for making modifications. Companies that choose Open Source typically hire outside web development firms or use their own I.T. departments to deploy it.
While one-click checkout technology is rooted in online consumer purchasing, the tool can serve B2B companies as well, Sheldon says. “It’s highly applicable to B2B companies, especially where there is a lot of repeated reordering,” he says. “It could be an executive assistant or an office manager, a construction project manager, someone who is just placing orders every day, all day.”
One-click checkout is especially suited to small to midsized companies that use credit cards to make purchases, Sheldon says. As long as they ship to the same location, the touch of a button reduces the time it takes to order or reorder and streamlines the checkout process. Plus, “smaller companies have shifted to using credit cards rather than purchase orders because credit cards often give a longer window to pay, and the user gets loyalty points
Magento, which is the e-commerce platform provider for 49 companies in the 2018 B2B E-Commerce 300, considers one-click checkout a broader part of making the ordering process simpler and easier, Sheldon says. “It’s about saving minutes per day, which is important if it’s your job to order all day,” he says. “It’s efficient and saves time.”
Adoption of one-click checkout technology for Magento and other vendors, such as BigCommerce, is possible because Amazon.com Inc.’s patent protection for the technology expired Sept. 12. The technology stores customers’ preferred payment and shipping information to enable them to complete a purchase with a single click. Since 1997, Amazon has been one of two major retailers to offer the service. Apple Inc. in 2000 entered an agreement with Amazon to license the technology for an undisclosed fee.
In September, Magento and BigCommerce said they would develop their own one-click checkout tools. BigCommerce was aiming for an early 2018 rollout, according to a spokeswoman. Magento is first to market with the technology, Sheldon says.
Munchkin implemented the Magento 1 e-commerce platform about five years ago, Bradbury says. The upgraded version also will include a B2B customer portal, targeting retailers and distributors. The company’s direct-to-consumer online sales are approaching 10% of total online sales, he says. Munchkin does not disclose sales figures.
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