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A Drop In The Bucket

Alexa Skills Revenue

Leor Grebler
1 min readJan 3, 2020
Image by Jack Sellaire from Pixabay

Two weeks ago, in the fray before the holidays, news came out that Amazon had made $1.4M in In-Skill purchasing revenue from Alexa usage. That’s pretty small considering nearly 100M end points (1.4 cents per Alexa endpoint per year is fairly low). It’s especially low compared to a stated $5.5M target.

So does this mean Amazon failed? No. That number is infinitely more than Google’s In-Action purchases. Maybe it means that Amazon was aggressive in its forecasting.

It likely means that the right products for in-Skill purchases hasn’t hit scale yet. There isn’t something tantalizing enough or to buy at any considerable expense by voice only. However, there is a real opportunity for visual / voice purchases. Imagine a visual menu of products.

We are still seeing exponential growth but Amazon should expect a hockey stick and not a rocket ship.

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Leor Grebler
Leor Grebler

Written by Leor Grebler

Independent daily thoughts on all things future, voice technologies and AI. More at http://linkedin.com/in/grebler

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