Amazon.com on Wednesday announced the release of an application designed to work on the iPhone and iPod touch. It’s available for free download from the App Store.

The application helps users search for products offered by Amazon.com and associated retailers, including Target and Macy’s. Full customer reviews can be viewed using the app, and transactions can be completed using Amazon.com’s “1-Click Shopping” and through the “Amazon Prime” premium shipping service as well. It basically takes much of the basic functionality of Amazon and moves it to the iPhone world.

“Amazon Remembers” is an feature in the new app that uses the iPhone’s camera to help you create lists of products you want, in a visual fashion. You take a photo, and the iPhone app uploads the image to Amazon.com; the service then tries to match products in the same category. You can buy the product that matches right away, or save it and store it for later in your Amazon account.

It sounds pretty cool, and it will definitely raise Amazon’s profile in the iPhone world.