New innovations in technology are significantly changing the way internet users look for and buy things, thereby making it almost impossible to keep pace with the trends. One of the e-commerce trends that is transforming the e-commerce space is voice commerce.
Voice commerce involves using voice-enabled devices to purchase online products, which is faster, easier, and more convenient than conventional online shopping. Nevertheless, due to its novelty, many people today do not know what voice commerce is or even how it works.
In this article, we will cover everything you need to know about voice commerce and help you decide if it is the right solution for your business in 2024.
Let’s get started.
Table of Contents
How huge is the global voice commerce market?
What is voice commerce?
How does voice commerce work?
Benefits of voice commerce
Challenges of voice commerce
Conclusion
How huge is the global voice commerce market?
The global voice commerce market is huge, with analysts estimating it to be worth a whopping USD 108.33 billion in 2024. The market is expected to grow and reach USD 586.3 billion in 2031, growing at a compound annual growth rate (CAGR) rate of 27.28% over the 2024-2031 forecast period.
From using voice commerce technology like Google Home and Amazon Echo to shop for goods online, the global voice commerce market has boomed with many adopters. As revealed by a Statista study, 22% of consumers from the United States employed voice-activated devices in placing online orders in 2022; this figure went up by 47% in 2024.
Therefore, businesses that take advantage of this technology early enough will definitely enjoy its huge benefits.
What is voice commerce?
Voice commerce, also known as v-commerce, is a type of e-commerce that enables customers to make purchases using voice commands. The process involves using voice assistants, such as Microsoft’s Cortana, Google Assistant, Amazon’s Alexa, or Apple’s Siri.
Even though it’s in the early stages of development, voice commerce technology has attracted interest from companies within the retail industry. Walmart, Starbucks, and Amazon are among the firms that have invested in it.
How does voice commerce work?
Digital voice assistants help in voice commerce. Voice assistants are programs used to recognize and act upon voice commands. These voice commands are interpreted using natural language processing (NLP) and artificial intelligence (AI) to perform the action accordingly.
For instance, consider a case where a customer says, “Hey Siri, I want to buy a new t-shirt.” The virtual digital assistant will understand the instruction and guide the customer towards the page where they can get more details about that particular product.
Both artificial intelligence and natural language processing work together to determine what customers might be intending to buy.
Therefore, the voice assistant can even make personalized product recommendations. For example, if the buyer chooses a t-shirt that looks with a certain design, then this system may propose for him/her some other ones with a similar style.
In short, NLP and AI technology in voice assistants make voice commerce possible. This provides customers the ability to search for what they want and pay for stuff online using smart gadgets.
Benefits of voice commerce
Voice commerce has a lot of advantages. The following are the main advantages of voice commerce.
1. Convenience
One of the biggest benefits of voice commerce is its quickness and ease of use. All a customer needs to do is a smart speaker or a mobile device that uses voice assistant technology and their own voice.
It doesn’t matter what a buyer is doing—whether they are cooking, multitasking, or driving—they can place orders of whatever item they want thanks to hands-free shopping experiences. There is no need to type in queries on a search bar using a keyboard or touchscreen, which makes their experience easy, time-saving, and satisfying.
2. Advanced security
Another benefit of voice commerce is that it is more secure than other forms of e-commerce. This is because a customer can set up a voiceprint, which is a form of biometric data that enables speech recognition.
This means that only the person with the correct voiceprint can make orders using that particular account, minimizing the chances of fraud.
3. Personalized shopping experience
The voice recognition technology that propels v-commerce uses an AI engine that gets smarter over time and makes all aspects of the buying experience more personalized. From searching and evaluating to buying, online retailers can tailor their products and offers to suit the needs of each individual customer.
By recognizing a customer’s buying habits and making personalized product recommendations, you can raise the chances of a purchase, boosting your overall e-commerce sales and customer satisfaction.
4. Improve customer experience
Customer experience can be greatly improved with voice commerce. This is because it provides business owners with valuable insights that can be used to improve user experience.
For instance, brands can monitor their voice analytics to see the feedback they receive from voice assistant users using their products and services. They can also use the data to track customer trends, which can aid in their efforts to improve customer experience.
5. Brand differentiation
With a lot of players in existence and others joining the e-commerce space, it is becoming a huge challenge for businesses to distinguish themselves from competitors.
Thankfully, voice shopping can help with brand differentiation. Businesses can leverage v-commerce, especially if they want to target younger generations aged 18 to 34, who are the largest share of consumers mostly interested in voice-enabled shopping.
Challenges of voice commerce
Despite its benefits, the use of voice commerce still has its drawdowns. Understanding these disadvantages is therefore important if you want to consider the implementation of voice-based e-commerce in your business. They include the following:
1. Unfamiliar to customers
Voice commerce is a relatively new technology, which means that not many consumers know about it. Most consumers still use the traditional way of shopping for items online. Therefore, e-commerce businesses that want to move forward with voice e-commerce may have challenges reaching their target audience.
2. Accuracy and misinterpretation
As conversational commerce advances, so does the accuracy of voice commands. Nevertheless, natural language processing models may have problems verifying a user’s identity using their voice alone.
For instance, voice commands mainly rely on auditory input, and fraudsters may try to replicate the voices and speech patterns of other people. Unless voice commerce is perfected, some NLPs can still face problems.
3. Search engine optimization challenges
To reap the advantages of voice commerce, retailers should familiarize themselves with voice search optimization, which involves optimizing their websites for voice search queries.
This is because shoppers are highly likely to use human language rather than the keywords they would use when typing. In addition, this makes their products and content more likely to appear when digital customers search for them using voice commands.
Conclusion
Voice commerce is a promising technology that benefits both sellers and consumers. Businesses can leverage voice technology by making their brand and products available to reach potential customers who use voice search to find items online.
Although it has not been widely adopted, it’s only a matter of time before it becomes a key aspect of online shopping. The future of voice commerce is bright. Last, but not least, remember to visit Alibaba.com Reads to gain useful insights from the world of e-commerce.
