Voice commerce is a $421.7 billion opportunity.
Yes, more than 27% of U.S. consumers made online payments with voice assistants instead of manually browsing multiple screens and navigating the checkout process. Devices like Amazon Echo, Google Home, and Samsung SmartThings now act as virtual shopping assistants.
With the number of voice search users anticipated to reach 157.1 million by 2026, voice commerce opens up a faster purchasing channel. For businesses, this means a higher conversion rate, stronger sales, and streamlined customer support.
In this blog post, we’ll explore voice commerce, how it works, and its benefits for your business.
What is voice commerce?
Voice commerce, or v-commerce, is a technology-driven shopping experience that allows customers to search for, purchase, and manage orders using voice commands. It reduces the reliance on screens and keyboards during the buying process.
The technology relies on two components: smart speakers that convert speech into digital commands and AI assistants that interpret these commands and take action. Customers can shop hands-free while cooking, driving, or multitasking.
How does voice commerce work?
The process starts when your customer speaks a command into voice-enabled devices. While it seems simple on the surface (the customer speaks and the device responds), the technology performs several steps to complete each task. These steps include:
- Converting speech to actionable data: Your customer's spoken command gets captured and converted to text through automatic speech recognition (ASR) algorithms. For example, when they say "buy new headphones," the system captures each word.
- Understanding customer intent: The system analyzes this text to understand what your customer wants. It breaks down the command to identify the action (buying) and the product (headphones). This involves natural language processing (NLP) to interpret the meaning behind the words.
- Finding the right products: Once the system understands the intent, it searches your product database or online store for relevant items. It pulls up matching products, prices, and availability.
- Creating the right response: Then, the system creates a response based on its findings. If multiple headphone options exist, it might ask for more specifics about the price range or features your customer wants.
- Completing transaction: The customer can then confirm their choice, and the system completes the transaction — adding headphones to the cart, processing payment, or scheduling the delivery.
When you implement voice commerce for your business, pay attention to the following:
- Speech recognition must handle different accents and background noise.
- Your product database needs clear categorization for accurate matching.
- Response systems should sound natural while providing accurate information.
Plivo’s AI voice agent makes integrating voice commerce simple. The platform combines three models: speech-to-text (STT) to convert customer voice to text, large language models (LLM) to understand customer intent, and text-to-speech (TTS) for natural responses.
Here's how an interaction with Plivo’s AI voice agent flows:
Customer: "I want to buy a new dress."
AI voice agent: "What style or color are you looking for?"
Customer: "A red cocktail dress."
AI voice agent: "We have red cocktail dresses in stock. What size do you need?"
Customer: "Medium."
AI voice agent: "Found a medium red cocktail dress. Ready to check out?"
Customer: "Yes."
AI voice agent: "Order confirmed. Delivery in three business days."
Each question narrows down options until the customer finds exactly what they want. The system handles real-time conversations with minimal latency and can process and respond to mid-speech interruptions.
Plus, you can train it on your product database and business rules to deliver relevant, contextual responses.
You also control the tech stack behind these interactions. Integrate Plivo with your preferred tools for speech recognition (like Deepgram), language processing (OpenAI), and voice generation (ElevenLabs).
Benefits of voice commerce for business
Let’s now look at what voice commerce means for your business.
Increased key sales metrics
Voice assistance commerce will claim nearly 30% of all e-commerce revenue by 2030. It directly impacts the sales metrics and drives growth through:
- Increased conversion rates: Instead of manually searching for items, customers have to speak to get instant tailored recommendations. This makes shopping more intuitive and reduces drop-offs, leading to a higher conversion rate.
- Reduced cart abandonment rates: Many customers abandon carts due to lengthy or complex checkout processes. Commands like “Buy this now” or “Complete my order” will reduce friction and promote seamless shopping experiences.
- Improved customer lifetime value (CLV): Simplified reordering of previous purchases increases sales frequency and long-term customer retention. Customers can simply say, “Reorder my protein powder” or “Buy the same shampoo as last time.”
- Impact:
- Reduces effort, making repurchasing quick and effortless
- Customers stick with the brand due to convenience
- More frequent purchases → Higher CLV
- Impact:
For example, Starbucks integrated voice ordering through Amazon's Alexa for customers to place orders via voice commands. This led to a 16% higher monthly revenue per user from customers who used the feature.
Reduced support cost
Voice commerce reduces support costs as it handles routine customer inquiries with ease. Your support team can focus on complex issues while the voice system manages common questions about order tracking, store hours, and product information.
The system operates 24/7, so customers get immediate answers without waiting for support staff. This self-service approach cuts call volumes and support queue times. Plus, voice assistants can manage multiple customer conversations simultaneously, eliminating additional staffing costs.
Improved customer experience
82% of customers report that personalization drives brand choice. With tailored recommendations and natural conversations, voice agents let customers connect with your brand on their terms.
For example, Domino's virtual voice ordering assistant, Dom, handles customized orders, suggests additions, and finds the best deals.
Beyond convenience, voice commerce helps collect direct customer feedback to improve your service. Customers can quickly share their thoughts through simple voice commands, helping you understand and address customer needs faster.
Challenges of voice commerce
Voice commerce brings three core challenges you need to consider.
Technological complexity
Voice commerce relies on expertise in NLP and voice recognition technology to get started. The system must accurately capture and convert voice commands to text, even with different accents and noisy backgrounds. Misinterpretations of customer queries can affect the entire brand's reputation and reduce customer satisfaction.
Invest in advanced NLP and machine learning algorithms to improve performance. Partnering with a voice-first vendor like Plivo gets the task done through high-quality, low-latency audio and context-aware interactions without a hitch.
Security concerns
Voice commerce shoppers often worry about their data being recorded, stored, and potentially shared with third parties since AI handles sensitive customer data.
This system requires extra security layers for data protection and purchase verification. Businesses must address potential vulnerabilities to prevent fraud or unauthorized access through sophisticated encryption techniques.
Integration challenges
Your voice platform must connect with your e-commerce infrastructure, inventory management, payment processing, and customer data systems. The system should also sync with your product database for accurate pricing, availability, and descriptions.
While platforms like PayPal support voice transactions, many payment systems and banks don't offer voice commerce capabilities yet. This can slow implementation and limit your growth potential until more providers adopt voice technology.
Measures to make voice commerce the next big thing
Voice commerce relies on advanced technology, but making it right doesn’t have to be complicated. Let’s look at measures to ensure its success and drive customer engagement.
Boost discoverability with voice search SEO
Voice search behavior differs from text — your customers speak in full sentences of 6-10 words. They ask, "Show me high-performance running shoes under $100" instead of "running shoes." So, connect your catalog with search engines and optimize product descriptions for these longer, conversational searches.
With 18% of global consumers using voice shopping weekly, discoverability improves when you optimize for natural speech patterns.
Streamline purchases with voice-activated shopping
Set up quick voice checkout flows and minimize steps between product discovery and purchase.
Nike launched Adapt BB shoes through Google Assistant. Fans bought the entire stock in six minutes using voice commands during an NBA game halftime. The launch proved voice shopping can drive quick sales when you make purchasing effortless.
Deliver hassle-free support with voice AI
Train your voice AI on common customer issues. Build responses for tracking, returns, product specs, and shipping questions. Update the system with new products and policies. For example, 1-800-Flowers runs voice self-service for customers to track orders, change delivery details, and check FAQs. This support channel works 24/7, letting customers get help when they need it.
Track voice commerce performance
Set clear metrics for your voice channel and use insights to refine your strategy. Track voice-activated sales, search volume, and support requests. Monitor how voice affects customer behavior. Do they order more often? Place bigger orders? Buy different products?
Analyze patterns and optimize voice interactions to improve customer engagement and maximize ROI. Voice support cuts operational expenses, and self-service options reduce agent workload. This automated ordering speeds up sales processing.
Turn customer insights into smarter strategies
Update your voice features based on user needs. Fix common pain points, add requested features, and remove unused options.
Estée Lauder's voice-enabled makeup assistant (VMA) collects user input during key moments of the experience. Customers share thoughts through voice commands or the feedback menu. Their app updates reflect direct user feedback.
Voice commerce then, now, and beyond
From basic speech recognition to sophisticated shopping systems, voice commerce has evolved so much. Here’s a timeline of the evolution:
- IBM's 1961 "Shoebox" could understand just 16 spoken words.
- In 1971, Carnegie Mellon's "Harpy" system processed 1,000 words through DARPA funding.
- The real breakthrough came in the 1980s when Dragon Systems brought speech recognition to personal computers.
- The 2010s marked the shift to mainstream voice commerce adoption:
- Apple's Siri (2011) introduced voice assistance to millions of iPhone users.
- Amazon's Alexa voice assistant (2014) transformed voice shopping by connecting speech recognition with e-commerce.
- Google Assistant (2016) joined the voice commerce market, driving competition and innovation.
Today, voice commerce is no longer used just for single-store transactions. Businesses can now integrate with multiple voice platforms — Alexa supports transactions for Walmart, Best Buy, 1-800-FLOWERS, and Starbucks. Customers only need to link their retail accounts to start voice shopping.
REI Co-op, Redbox, and eBags also use the platform to distribute deals and track orders.
Apple Store handles peer-to-peer payments through Siri. Walmart's mobile app tests hands-free shopping, order scheduling, and voice-based customer support.
The market shows strong growth potential. Research projects voice commerce to grow at a CAGR of 24.34% annually from 2024 to 2030. That means v-commerce is slowly becoming a necessity to stay competitive for businesses.
Explore voice commerce with Plivo’s AI voice agent
Launch, scale, and manage voice commerce through Plivo’s AI voice agent, which offers 99.99% uptime and 16kHz audio quality for clear conversations along with:
- Human-like interactions: Keep emotion and accent in conversations. Voice detection creates a natural conversation flow
- Context-aware responses: Provide relevant answers with AI that learns from your business knowledge base
- Flexible tech stack: Connect any STT, LLM, or TTS system
- Low-latency audio: Process conversations in real time with minimal delays
- Backup protection: Reroute networks reroute in under 2 seconds during outages
- Voice activity detection: Track speech onset and end for smooth conversations
Guide your customers through product selections, deliver personalized recommendations, and close sales on auto-pilot. Contact us to get started.
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