Amazon Echo To Be The Third-Billion Dollar Business For Amazon.com
It’s the earnings season — and like many other Amazon will be reporting its earnings on Thursday in which it will be boasting about the growth of its cloud computing business, Amazon Web Service and its e-commerce success. However, analyst believe that this time round, there is a third division that the company is expected to talk to about — Echo.
Amazon Echo is a device that lets a user’s connects to various devices through its voice. It’s a Siri-like virtual assistant called Alexa. Through the device a customer can like to music on a playlist or simply order a product online. The product has managed to enter into the retailer’s best sellers list despite of the fact that it has only been in the market for over seven months. It could easily become the next billion-dollar business for the e-commerce giant, as believed by the chief chairman of Channel Advisor, Scot Wingo. He added that everyone has been asking around and wondering what could be the third billion dollar business for the company, and he is sure that it could be Echo.
The Chief came up with a system to estimate the same stores sales- SSS through which the company is able to see how well the third party sales are going on its platform. Through the SSS, the management is better able to track the success of other business and watch the company closely.
According to the announcement at the Consumer Electronics Show, the device was the super star there and was the top selling product that had a price tag of over $100 during Black Friday. Through the Prime Now service, Echo was in the top five devices that were ordered online. Additionally, it will be featured on the online advertisement of the Super Bowl.
Scot Wingo stated that the company has not even advertised the product a lot so it is quite surprising to see it do so well already. He further stated that the company has not even made an advertisement for the Amazon Kindle and yet it do so well, so he believes that maybe the people thought that it could be the next Kindle or even be bigger than it so they went for it — which is pretty big for the retailer.
It is possible that not much will be discussed regarding the product during the Thursday call as the Wall Street analysts have not started to keep a close eye on the device as yet. He also believes that since it is not as big as other initiatives of the organization so it won’t get much attention at this point.
The device has its own application store by the name of Alexa app store which had over 135 apps as of last month which included AccuWeather, AOL, StubHub etc. People are quite keen to use the device at this point but to make it more consumers friendly, they need to work on making it easier to add third party creations.
The Vice President of Amazon Devices, Neil Lindsay stated that the product has had an overwhelming response from the consumers. Also, if you’re wondering who starred in the Super Bowl ad, it was Alec Baldwin and Dan Marino.