Amazon Planning To Take Lead Position In Voice Commerce

According to Amazon, the biggest seller on Prime Day this year was the Echo Dot. Other devices that are Alexa-enabled also reached record sales though the online retail giant did not offer hard numbers. Thus Prime Day managed to serve Amazon’s goal of becoming an early leader in the emerging segment of voice commerce.

“Amazon was using Prime Day to educate shoppers how to use voice to buy things online … [it] was probably beneficial to them in terms of getting out in front of others,” Market Track’s marketing director, Ryne Misso, said.

Voice shopping

A study conducted by cloud-based software platform LivePerson on consumers who own Alexa devices shows that more than 70% of them had made, at the minimum, one purchase via a voice command. 46% of the owners of these devices also turned out to be repeat users. Nearly 50% of the users used Alexa to add items to their shopping carts. The data did not, however, indicate whether all those transactions ended up being completed.

It is understood that voice commerce may turn out to be more easily adoptable by shoppers since it is building on verbal communication and digital shopping, which are both familiar. The only change in behavior that will be required will involve making a verbal order to a device instead of physically moving to the store in order to fetch a particular item or items. This is a habit that is expected to be quickly learnt because the learning curve is not steep.

Consumer packaged goods

Approximately 66% of Prime Day deals that were exclusive to Alexa were reserved for CPGs – consumer packaged goods. This means that Amazon intends to use Alexa and Echo to push sales in consumables and groceries. Partly this is because the CPG segment fits well with a subscription model since these are items that are meant for daily use and how long they last can be easily predicted.

Regarding the fastest deliveries on Prime Day, Kirkland in Washington and Berkeley and Sunnyvale California took the honors after deliveries only took 12 minutes via Amazon’s Prime Now service. The speed with which orders are delivered is increasingly becoming a point of differentiation among retailers. Walmart offers a curbside program which has proved popular. Additionally, Walmart is also testing out a service in Arkansas and New Jersey where its employees are paid to deliver packages to customers on their way home.

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