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Alexa and Prime Air Poised to Change E-commerce

8 February 2017

30 minutes or less (just like pizza!)

As we’ve seen, Amazon and the consumer electronics industry are giddy with Alexa. She’s everybody’s new darling and Prime Air makes her much sweeter. Prime Air promises delivery within 30 minutes or less — just like pizza delivery. Think about it, anything you can order on Amazon can arrive at your door in under 30 minutes (as long as it weighs 2.6kg or less). This is no longer science fiction — Amazon made its first delivery via drone in the UK in December just two months ago.

So what impact does Amazon’s investment in drone delivery have? One thing’s for certain, Amazon is not backing down on shopping domination. Once Amazon officially launches in Australia, we’re talking about e-commerce that could one-up the standard same-day delivery that Alibaba and other China-based companies have offered for years.

Delivery and Demand

A quick survey of more than 200 people across the U.S. provided some insight into how this new service might change shopping behaviour in Australia:

  • The majority of respondents visit a local supermarket or department store several times a week
  • 100% of respondents report they shop online; 99% shop at Amazon.com, 27% of whom are a Prime member
  • Respondents report that convenience is the number one reason they shop online, followed by selection
  • 25% of respondents have an Amazon Echo at home, and another 10% have either Google Home or Siri
  • 57% indicate they are not familiar with Prime Air
  • 60% report that if they knew they’d receive their items within 30 minutes, they would change the way they shop online
  • 65% said they would go to the market less often if they could receive their items within 30 minutes
  • Respondents indicate they would start buying other items from Amazon like CPG products (e.g. toilet paper and toothpaste), soft drinks and auto parts

 

Marketers, Prepare

 The best position to capitalise on this new e-commerce development is to optimise your virtual shelf. Make sure that your product feeds are up to date and employ SEO best practices. In addition, stay on top of all that’s new with voice activated search. The time will come when we’ll have the opportunity to buy and optimise our product listings on Amazon.

Resolution Team

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