PayPal and Shopify See Big Business in Returns. Merchants Want to Fix the Problem ThemselvesRead More

This link has already been used. Please log in or subscribe to read the full article.
Amazon's Echo and Echo Plus devices. Photo by Bloomberg

The Reality Behind Voice Shopping Hype

By  |  Aug. 6, 2018 10:01 AM PDT
Photo: Amazon's Echo and Echo Plus devices. Photo by Bloomberg

Amazon and Google both tout voice shopping—the ability to make purchases and check on the status of orders with verbal commands—as significant features of their smart speakers. Some forecasts call for annual voice shopping sales to reach $40 billion in just a few years.

But it appears that only a small fraction of smart speaker owners use them to shop, and the few who do try it don’t bother again. The Information has learned that only about 2% of the people with devices that use Amazon’s Alexa intelligent assistant—mostly Amazon’s own Echo line of speakers—have made a purchase with their voices so far in 2018, according to two people briefed on the company’s internal figures. Amazon has sold about 50 million Alexa devices, the people said.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
Opinion startups
Don’t Build the Wrong Kind of AI Business
Art by Clark Miller.
At a catch-up coffee a few weeks ago, a founder friend asked me, “What AI thing should we build?” It was the third time that week a founder had asked me the same question. Generative artificial intelligence is 99% of the buzz in Silicon Valley right now. In just the last few weeks, Open AI released GPT-4, its most advanced language model to date; Google announced AI for the...
Latest Briefs
 
Sam Bankman-Fried Charged With Paying $40 Million to Bribe Chinese Official
Amazon Opens ‘Sidewalk’ Wireless Network to Outside Developers
Meta to Lower Bonus Payments, Add More Reviews
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Tonal’s now-shuttered Palo Alto, Calif. retail store. Photo by Getty.
Exclusive startups
Tonal’s Valuation May Fall 90% in ‘Cram-Down’ Financing
Tonal, a fitness startup with a cadre of celebrity backers, is crunched for cash after failing to find a buyer.
Bill Gurley in 2019. Photo by Bloomberg
Exclusive
Good Eggs Cuts Its Valuation 94% in Lifeline Financing as More Startups Get Desperate
As more startups struggle to raise money from venture capitalists and approach bankruptcy, they are going to extreme lengths to stay afloat.
SpaceX CEO Elon Musk last August. Photo by Bloomberg
Exclusive startups electric vehicles
SpaceX Plans New Funding With Backing From Saudi, UAE Investors
A subsidiary of Saudi Arabia’s investment fund and an Abu Dhabi investment firm are planning to invest in a multibillion-dollar funding round for SpaceX, Elon Musk’s rocket company, according to people familiar with the investor discussions.
Block chairman and co founder Jack Dorsey. Photo by Getty
markets
Fintech’s Big Wakeup Call
Fintechs were supposed to transform banking by making it dead simple for users to open savings accounts or pay their bills.
Art by Clark Miller.
Market Research e-commerce culture
The Skin-Tech Devices Helping Execs Beautify in a Hurry
I’m always 29 at heart,” said Liyia Wu, CEO of ShopShops, a livestream shopping app for fashion, beauty and lifestyle products.
Art by Clark Miller
Surreal Estate real estate
Silicon Valley’s Realtors, Like Its Bankers, Are Having a Tough Month
In early March, Ken DeLeon, founder of DeLeon Realty, a Silicon Valley–based brokerage that sold more than $1 billion in homes in 2021, called one of his venture capitalist clients to discuss the purchase of a $20 million–plus megamansion.