News, Education and Events Decoding Digital Payments & Fraud

News, Education and Events Decoding Digital Payments & Fraud

E-Commerce Transactions via Voice to Reach $40 Billion by 2022: Report

E-Commerce Transactions via Voice to Reach $40 Billion by 2022: Report

U.S. consumers will spend $40 billion annually via voice shopping by 2022, up from only $2 billion today, according to a new report. Currently, only 13 percent of U.S. homes have a digital home assistant capable of executing e-commerce orders. In four years, however, OC&C Strategy Consultants predict that household smart speaker penetration will grow to 55 percent, driving a wave of shopping by voice.

Amazon is positioned to reap the greatest rewards, the report said. Its Echo home speaker is in 10 percent of U.S. homes now, with Google Home in 4 percent and Microsoft’s Cortana in 2 percent. Grocery (20 percent), entertainment (19 percent), electronics (17 percent) and clothing (8 percent) currently account for the largest share of voice purchases, according to OC&C. And, the “vast majority” of grocery purchases are via Amazon Fresh.

“Voice commerce represents the next major disruption in the retail industry, and just as e-commerce and mobile commerce changed the retail landscape, shopping through smart speakers promises to do the same,” said Coye Nokes, partner at OC&C. “In order to properly position themselves, retailers must ask themselves key questions, such as: What objectives am I trying to meet? How should I tailor my voice proposition to meet those objectives? Which AI system is best suited to enabling those objectives? How can I build consumer trust in my product recommendations? And, how can I make the order economics work?”

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