Amazon Android Apps

Amazon is rolling out a new service today within its Android app store that will allow developers to set up a shop inside of an application.

We first learned about Amazon’s in-app purchasing service a few weeks ago when it was still in beta testing. The service will allow developers to offer customers both in-app purchases/upgrades as well as subscriptions, and in return, make them more money.

The move will pit Amazon against both Appleā€™s iOS App Store and the Google Play store, which already offer this kind of functionality. The new in-app purchasing takes advantage of Amazon customers’ familiarity with the online retailer’s other payment systems, such as the one-click purchasing.

Why is Amazon interested in offering this kind of service? Well, in-app purchasing is definitely a growing portion of mobile spending. Much like competing app stores, Amazon will take a 30 percent cut of all revenue generated from the store — so, this obviously has the potential to make the company a lot of money.

But as we previously noted, the biggest benefit to Amazon would be in boosting media sales from owners of its Kindle Fire tablet. At $199, the Kindle Fire is a loss-leader and relies on purchases being made via the tablet to generate a profit. An Amazon-branded app store with in-app purchases natural fit.

Check out a demo video of the new in-app purchasing service from Amazon embedded below.