Commentary

Voice Shopping Heading To $40 Billion; Amazon Dominates

While consumers are using smart home speakers to listen to music and answer questions, they’re also increasingly using them to buy things.

Voice shopping is already a $2 billion business and projected to grow to $40 billion within four years.

Online retail giant Amazon is projected to dominate the home speaker market, which will grow from 13% to 55% of homes, according to a study comprising a survey of 1,500 smart speaker owners conducted by OC&C Strategy Consultants.

Three tech giants lead the virtual assistant AI space in the U.S. Amazon’s Echo has 10% penetration, Google’s Home 4% and Microsoft’s Cortana 2%. Apple just recently launched its high-end HomePod smart speaker.

There are some twists in voice commerce, however:

  • Only 39% of consumers trust the personalized product selection of smart speakers
  • Voice purchases tended to be standalone, lower value items
  • There are only 39 retailer connected applications within the voice shopping category
  • Only 44% of consumers believe that smart speakers offer the best value selection of products

However, Amazon still has the upper hand. A large majority (85%) of consumers select the products Amazon suggests.

That Alexa is one smart voice retailer.

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3 comments about "Voice Shopping Heading To $40 Billion; Amazon Dominates".
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  1. John Grono from GAP Research, March 2, 2018 at 7:06 p.m.

    $2b annually for voice shopping IS a big number.

    But when you think about it, there is around 7.6 b people on the planet so that works out to be just over 26 cents per person per annum - one cent a fortnight.    Not such a big number eh.

  2. Chuck Martin from Chuck Martin replied, March 2, 2018 at 9:42 p.m.

    Yes, when you break it down, John. Though not eveyrone on the planet has one, of course.

  3. John Grono from GAP Research, March 3, 2018 at 12:08 a.m.

    True Chuck.   But with the current hyperbole surrounding voice shopping it seems like everyone must have by now, or if not, then real soon.

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