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Alexa is in millions of households and Amazon is losing billions

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Re: Alexa is in millions of households and Amazon is losing billions

#121

We pay $179 a year for Amazon music. We use Alexa all the time to play music. How is that not a huge revenue success? It sounds like they are not properly factoring that in as a downstream impact.

It takes a LOT of $179/year subscriptions to pay the salaries of 10,000 engineers. Especially since a lot of that subscription revenue for music will go to licensing the content.

Re: Alexa is in millions of households and Amazon is losing billions

#122
post #86

The core issue is that Amazon envisioned Alexa as a product that would help it increase sales. Smart home features were always an afterthought. How convenient would it be if people could shout "Alexa order me Tide Pods" from wherever they were in their home and the order got magically processed? That demo definitely got applause from a boardroom full of execs. The problem is that consumers don't behave like that. Thi…

I don't think any of that is true. If Costco produced such features in their imaginary product, people may use it. Why? Because Costco has proven itself trustworthy of a blind repeat purchase. You could trust the price you're paying is typical and fair. Amazon on the other hand...

> If Costco produced such features in their imaginary product, people may use it.

The question is would it make people shop more? If you buy one set of paper towels a week, and Costco rolls out a voice interface, would you now start ordering 2 or 3? If not, what return are they getting on the billions of dollars in additional spending?

In reality people would use it for a day, go "neat", and switch right back to the website or app.

Re: Alexa is in millions of households and Amazon is losing billions

#123
post #86

The core issue is that Amazon envisioned Alexa as a product that would help it increase sales. Smart home features were always an afterthought. How convenient would it be if people could shout "Alexa order me Tide Pods" from wherever they were in their home and the order got magically processed? That demo definitely got applause from a boardroom full of execs. The problem is that consumers don't behave like that. Thi…

> Make it a value add in my life and I wouldn't mind paying a subscription fee for it.

I dunno, I feel like the value was priced in the purchase price for me. I would not consider paying both a purchase price and subscription fee for it and probably not a subscription fee at all because all they ever do is go up. What would I do with this dumb robot in my house when I don't agree to pay for their latest fee structure.

Re: Alexa is in millions of households and Amazon is losing billions

#124

Throwaway here but I used to work in Alexa org at Amazon and was amazed by how big the org was (thousands and thousands of people) considering it doesn't seem to be a big revenue generator I remember constantly hearing about projects other teams were working on thinking "why would anyone use that" or "how would that ever make money" Just trying to shoehorn alexa into as many domains as possible It was like empire bui…

I once heard about a feature dogfooding invite that was sent out specifically for people with babies because they wanted to use Alexa always-listening to activate when a baby was crying and automatically order diapers or something ridiculous like that.

Re: Alexa is in millions of households and Amazon is losing billions

#125

Earlier quoted context omitted.

I don't think any of that is true. If Costco produced such features in their imaginary product, people may use it. Why? Because Costco has proven itself trustworthy of a blind repeat purchase. You could trust the price you're paying is typical and fair. Amazon on the other hand...

To build on the Costco analogy: for any given product category they typically only have three specific options: good, better, best. I could tell Costco bot that I need AA batteries and it would ask me if I prefer Duracell, Kirkland brand, or cheapest. I trust that either of them will be plenty good, so I would say cheapest. Amazon has a vastly different experience with thousands of indistinguishable Chinese knockoffs…

To add to your point, one can't even pick out a brand-name product directly from Amazon's website and be sure of getting the real thing.

Re: Alexa is in millions of households and Amazon is losing billions

#126
post #86

The core issue is that Amazon envisioned Alexa as a product that would help it increase sales. Smart home features were always an afterthought. How convenient would it be if people could shout "Alexa order me Tide Pods" from wherever they were in their home and the order got magically processed? That demo definitely got applause from a boardroom full of execs. The problem is that consumers don't behave like that. Thi…

> Make it a value add in my life and I wouldn't mind paying a subscription fee for it. I dunno, I feel like the value was priced in the purchase price for me. I would not consider paying both a purchase price and subscription fee for it and probably not a subscription fee at all because all they ever do is go up. What would I do with this dumb robot in my house when I don't agree to pay for their latest fee structure…

Well it's still a speaker, and will still play music. If they bundle in a GPT-5 level personal assistant I can definitely see a ton of people paying the added fee.

Re: Alexa is in millions of households and Amazon is losing billions

#127

Throwaway here but I used to work in Alexa org at Amazon and was amazed by how big the org was (thousands and thousands of people) considering it doesn't seem to be a big revenue generator I remember constantly hearing about projects other teams were working on thinking "why would anyone use that" or "how would that ever make money" Just trying to shoehorn alexa into as many domains as possible It was like empire bui…

I once heard about a feature dogfooding invite that was sent out specifically for people with babies because they wanted to use Alexa always-listening to activate when a baby was crying and automatically order diapers or something ridiculous like that.

I remember getting that invite!

You could use "baby crying detected" as an automation trigger

Re: Alexa is in millions of households and Amazon is losing billions

#128
post #86

The core issue is that Amazon envisioned Alexa as a product that would help it increase sales. Smart home features were always an afterthought. How convenient would it be if people could shout "Alexa order me Tide Pods" from wherever they were in their home and the order got magically processed? That demo definitely got applause from a boardroom full of execs. The problem is that consumers don't behave like that. Thi…

I don't think they tried hard to create an experience user would like. Their shopping features is honestly very lacking. I think Alexa was just because of Amazon's norm of spending very high on R and D. That was the reason AWS was born. No one thought people would pay something like 10x just for consistency in cloud, but here we are. One AWS could cover 20 Alexas.

I'm not sure there is a good means for buying over voice only, and I'd argue it's only possible to know now that users overwhelmingly prefer digitally handling the product (title, pictures, description, reviews) before making even repeat purchases. Similarly, I'm not sure Amazon could convert consumers to a tablet-based purchasing device like they envisioned Alexa; we all have smart phones and tablets already.

Re: Alexa is in millions of households and Amazon is losing billions

#129

Speaking of Alexa: Can anyone explain the thought process behind making it possible to change the volume in small increments via buttons, but not via voice command (only in 10% increments)? I only use it as an internet radio player for background music and it's extremely annoying that it can't do that.

You can set the volume to any number from 1-10

Re: Alexa is in millions of households and Amazon is losing billions

#130
post #122

Earlier quoted context omitted.

I don't think any of that is true. If Costco produced such features in their imaginary product, people may use it. Why? Because Costco has proven itself trustworthy of a blind repeat purchase. You could trust the price you're paying is typical and fair. Amazon on the other hand...

> If Costco produced such features in their imaginary product, people may use it. The question is would it make people shop more ? If you buy one set of paper towels a week, and Costco rolls out a voice interface, would you now start ordering 2 or 3? If not, what return are they getting on the billions of dollars in additional spending? In reality people would use it for a day, go "neat", and switch right back to the…

> The question is would it make people shop more?

No, that's not the question.

The question is would it make me shop more AT COSTCO.

And yes, it would make me shift some of my purchasing from my local grocery store to Costco. Costco is a long drive that's only worth it for large trips.

But if I could voice order for shipping or (even better) delivery? My local grocery with its god-awful parking lot full of blind 90-year-olds stuck in reverse would be in serious trouble.

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