Alexa Poised To Play A Bigger Role This Amazon Prime Day
"This will mark the second year that Amazon pushes 'voice shopping' with Alexa-exclusive deals," says says Park Associates Analyst Dina Abdelrazik.
The third annual Prime Day is set on Tuesday, July 11, with the e-commerce giant promising “hundreds of thousands of deals exclusively for Prime members” with 30 hours of deal shopping starting night before – and new deals as often as every five minutes.
And like last year, many of those deals will be aimed at Amazon Echo owners through the device’s voice-activated digital assistant, Alexa.
In a press release, Amazon singles out “voice shopping” more “Alexa-exclusive deals” for members with an Amazon Echo, Echo Dot, Echo Show, Amazon Tap, compatible Fire TV or Fire tablet.
“Amazon is exclusively targeting its consumers who have an Alexa-enabled device, offering early-bird access to their Prime Day deals,” notes Dina Abdelrazik, Analyst, Parks Associates. “This will mark the second year that Amazon pushes ‘voice shopping’ with Alexa-exclusive deals.”
According to Parks Associates data, 17 percent of Amazon Echo owners use the device to shop for goods and services. We expect Amazon’s newest Echo Show iteration, which features a screen, to increase voice-supported shopping further.
One other change in the way Alexa homes will be able to shop includes the first buyers of the video/voice device, the Echo Show.
Pre-orders for the $299 Echo Show began last month with, promising consumers “everything you love about” its voice-activated assistant, Alexa, along with the ability to watch video flash briefings and YouTube, see music lyrics, security cameras, photos, weather forecasts, to-do and shopping lists, and more.
While the Echo Show has been a top-selling electronics device on Amazon (naturally) for the past month, the numbers of those shoppers will not have a perceptible impact in terms of actual sales numbers on Prime Day.
However, the use of the Echo Show, and Alexa generally, will certainly influence the shape how the mix of voice- and visual shopping grows.
As Google and Microsoft’s Bing expand the power of visual search as yet another way consumers can find and shop for products, the complementary aspects of voice and visual queries to generate specific responses, as opposed to a list of hypertext links, will force retailers of all stripes to further reconsider their omnichannel marketing strategies.
“With a screen, Echo Show users can visually see what items they place in a cart and make choices based on the displayed selection of goods,”Abdelrazik adds. “Amazon’s other Alexa devices lack that ability – a limitation that has hindered some consumers from voice shopping on devices like the Echo.”
Just how big Prime Day really is remains a well-kept secret, notes Deborah Weinswig, managing director of Fung Global Retail & Technology, in a blog post.
Last year, estimates of the day’s sales ranged as high as $2.5 billion, Weinswig says, citing figures from Internet Retailer.
“Amazon reported that orders increased by 60 percent worldwide and by 50 percent in the US on Prime Day,” Weinswig writes. “Even in 2015, Amazon commented that its Prime Day sales exceeded its Black Friday sales in 2014.”
In a comparison of contrived shopping holidays, Prime Day is way below China e-commerce hegemon Alibaba’s Singles’ Day, which saw $17.8 billion worth of gross merchandise volume last year.
“The shopping holiday serves several purposes,” Weinswig says. “First, it offers exclusive deals for Prime members, rewarding them for their membership. Second, it drives Prime membership, as nonmembers are offered free trial memberships.
“Amazon figured out long ago that Prime memberships represent a virtuous circle for the company: signing up Prime members and providing them with exclusive benefits encourages them to renew their membership the next year and encourages others to sign up for the program who will then renew their own membership,” Weinswig says.
The relative success of Prime membership shopping programs could mean that a saturation point is fast approaching. There were 80 million Prime members in the US in March 2017, twice as many as two years earlier, according to Weinswig. That represent 64 percent of US households.
As rivals like Walmart expand its own responses to Amazon’s e-tail dominance, Amazon’s ability to reduce fees and offering more deals and still make the program worthwhile has to hit a wall at some point in the near future.
So as rival retailers at all levels gird themselves for Amazon Prime Day’s onslaught, the time is right to fine-time their own responses and personalized marketing tools.