Amazon's Echo
By Sasha Fedorenko

Voice activated tools such as Amazon Echo and Google Home are the next big shake up facing the retail industry with an impact akin to that of mobile.

So warns new data from OC&C Strategy Consultants, which finds that a tenth of UK homes already have on and they are using them to shop with. By 2022, this is projected to increase to 48% – delivering £3.5bn worth of spend.

Amazon’s [IRDX RAMZ] Echo voice-activated technology is currently the dominant player in voice commerce, with a clear lead (8%) of UK household adoption in comparison to the use of (2%) smart-speaker Google’s [IRDX VGOO] Home device, finds the

Some 45% of UK grocery purchases are already replacing brick-and-mortar store and online buys, the majority of which are bought on Amazon Fresh via Amazon’s Echo voice technology.

Even though groceries and other low-value fast-moving consumer goods (FMCG) items form the bulk of purchases made through voice-technology, browsing opportunities remain limited, with 70% of overall are made on specific ‘known’ product, typically as a repeat order.

However, the restricted browsing doesn’t deter Amazon from taking advantage to prioritise its own choice of product assortment; this is often a previously bought product or one which is popular and well-priced, with positive customer experience metrics and a solid supply chain performance, enabling rapid delivery.

In fact, the majority (85%) are very likely to accept Amazon’s recommended product, which can typically boost pre-choice status sales by around three times, reveals the same body of research.

Retailers that are aiming to cement their position in voice commerce sector that’s predicted to contribute £3.5 billion worth of spending…