Until now, Amazon's website and apps served as a medium for providing consumers with an infinite number of options at the lowest possible price. Customers relied on Amazon's review system and recommendations to find the products that were best suited to their needs. This buyer-seller interaction is bound to change with Alexa. Customers may begin to rely more on Alexa to suggest purchases as she becomes more intelligent and personalized.
Alexa and the other digital assistants are at the forefront of the e-commerce battle, integrating Amazon's Dash buttons and Dash Replenishment Service into an increasing number of smart-home appliances. Having an online presence is quickly becoming a cost of entry for brick-and-mortar retailers seeking to become omnichannel retailers; integrating that online store with automated replenishment services and the growing number of digital assistants is poised to become a requirement.
Alexa can already manage lists, ranging from a to-do list to several shopping lists. But Alexa can go above and beyond, automatically ordering products based on a verbal request. Amazon has been promoting Alexa-only deals over the last month in order to increase the use of Alexa for shopping. Simply ask "Alexa, what are your deals today?" and Amazon will provide key products at deep discounts for Alexa users.
With Amazon pushing more deals and promotions for shopping through Alexa-powered devices, we will see an increase in consumer usage of these devices. Amazon would benefit from this in two ways:
Customer Retention: The effortless shopping experience provided by Amazon Echos and Dots will help increase repeat business and customer lifetime value. This Alexa-powered device, like Prime, will provide another level for Amazon to ensure customers remain in the Amazon eco-system to meet their needs.
Better bargaining power: Because Amazon can control the positioning of products during the product exploration phase for Alexa, it can gain a higher stake when negotiating with vendors or merchants.
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