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What is Voice Commerce – Introduction

Blog: NASSCOM Official Blog

Voice commerce in the retail and e-commerce industry refers to a kind of conversational commerce technology wherein the customer interacts and transacts through voice recognition technology.

In voice commerce, customers use voice commands to search and purchase products instead of typing the query in search or clicking through the icons.

Voice commerce has been gaining traction for a few years now and is expected to be a USD 40 billion segment by 2022, with an increasing share in overall e-commerce market.


Underlying Technology

How the Information Flows from Speech to Online Purchase

When a user mentions a specific activation command (Hey Siri, OK google, etc), it triggers the device to analyze the speech command using Automatic Speech Recognition (ASR). The data flows into Natural Language Understanding (NLU) to formulate a response and execute commands at the backend using internal and external API linkages.


Key Players, Top Brain and Assistants

Unlike text search which is dominated by Google, Amazon Alexa is the market leader in Voice Search. This appears to be largely driven due to the difference in user behaviour while using voice search functionality between devices. Interestingly, users are much more likely to vocally interact with a smart speaker device in comparison to their smartphone despite considerable similarities in functionality and usage.


User Voice Engagement – Speakers vs Mobiles

This difference in user engagement in itself has significant implications on the Voice Commerce market and highlights the need for a specific commerce strategy for brands and retailers looking to tap into the growing voice commerce market. (We will cover these in detail in upcoming blogs of the Voice Commerce Blog Series).


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