Amazon Echo owners spend more on Amazon, says NPD
We all suspected the Echo’s purpose was – at least in part – to drive more Amazon sales. And that’s exactly what’s happening, according to a new study by NPD Group. The research company found that owners of the Echo spent around 10 percent more after they bought the voice-powered smart speaker than they did before.
The NPD Group’s Checkout Tracking purchase monitor provided the data, analyzing customer spending and overall number of receipts, and found that there was also a 6 percent bump in the overall number of purchases made by Echo owners on Amazon.com when compared to their pre-Echo existence.
Data for the study came from Echo’s full term of availability, which surprisingly actually spans two years (it feels like it’s been a lot less time to me). NPD also found that about half of the online spending done by Echo owners happens at Amazon.com once they pick up a device.
It’s not a huge deal for other retailers yet because of Echo’s somewhat limited reach thus far – NPD says it estimates around 1.6 million have sold thus far. But it’s a trend that could be very good for Amazon long-term, especially as it brings the Echo Dot back to market at a new, more affordable price point.