Karen Webster, CEO of Market Platform Dynamics, writes at LinkedIn about Amazon Alexa and Dash and the trust on which Amazon can build on to establish those new platforms based on new interaction paradigms:
Why they make their choice, they responded, was a matter of trust – trust built on the reputation of the site, and the site’s ability to create and deliver a satisfying and reliable experience.
Attributes that Alexa and Dash as part of Amazon both have as critical foundations to build from. (..)
One interesting aspect about Alexa and the Dash buttons and the Dash Replenishment Service is the fact that being about screenless interactions they enable a level of convenience unseen before for some use cases -they allow smaller units of interaction-. One result is that both, Echo/Alexa and the Dash universe, are not just better suited for categories previously rather underrepresented online, like consumables, but that they may even be the perfect solution for these categories, far superior not only to traditional E-commerce but brick-and-mortar retail as well. Add to that a head start for those platforms because they come from trusted Amazon. Webster:
Grocery and drug, the players that thought they’d never have to worry about disintermediation, are at risk in much the same way that big department store retailers are right now, too. Instacart won’t turn grocery stores into omnicommerce hipsters since most groceries aren’t bought in the urban areas that they serve. And consumers everywhere won’t stop going to the grocery store – just like they haven’t stopped visiting the physical retailer. They’ll do it less often and only to buy the things that they need to see and touch – meat and produce, for example. Consumers increasingly won’t want to take the time to visit the store for the weekly “big shopping” the way they once did.
And those consumers may not lose their valuable store loyalty card benefits either.
Alexa will make it possible for consumers to have a more direct relationship with product manufacturers who now have Alexa and Dash as platforms to pull through demand for their products instead of store shelves.
Alexa and the Dash platform both have the potential to completely take over certain product categories, consumables and commodity products to start.
The back and forth dynamics brands already experience today in working with their counterparts at the Amazon Marketplace will expand to Alexa:
Those manufacturers will be able to offer incentives to those consumers by redeploying some of their hefty slotting fee budgets to promotions that Alexa can offer to the consumers on the other end of her voice: “Karen – you always order Tide Pods, but Dynamo has a new product that’s just like it for $1.50 less this week – would you like to try it?”
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