In Response to “Alexa, why are you crying?”

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Product Hunt wrote a few days ago a post about how only 2% of the 50M Echos are being used for purchases. They claimed that’s an “oops”.

Even if Alexa were just about online orders, which they rightly point out that it isn’t, it’s a BIG oops. If we take 2012 numbers of about $50 per order, that’s a lot of potential orders through the Echo.

There were also other figures.

Two years ago, I wrote about how I was unsure about the role of shopping on a voice platform. Shopping is still not the killer app for voice — music is the killer app.

How much have Echo or third party Alexa integrated devices driven the $4/month subscription of Amazon Music Unlimited?

In September 2016, there was also discussion of how Echos increased the average household purchases through Amazon.com. If we projected the numbers from back then and cut them in half, those 50M units could translate into $1B in additional profit per year, not including other services that this drives.

Even then, that amount of profit would be a tiny part of the $66B that Amazon made in 2017. Alexa isn’t really about just driving shopping revenue, it’s about shutting out other players and creating the next trillion dollar software platform. That’s where Amazon will make its money, at some point.

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

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