Alphabet Inc(NASDAQ:GOOGL): How Alphabet Inc (GOOGL) And Walmart Could Dent Alexa’s Voice Shopping Dominance

Alphabet Inc (NASDAQ:GOOGL) recently entered into a partnership with Walmart (WMT) to allow Google Home connected speaker users to order Walmart products using voice commands.

As L2 reports, while Amazon’s Alexa holds a dominant position in that arena, Google and Walmart have a unique opportunity to challenge the ecommerce giant by courting major brands in the fast-growing space:

The number of Americans using a voice assistant device is forecast to increase 129% this year to 36 million, with Amazon capturing 70% share of the market. While shopping is not yet the primary use case for voice assistants, Alexa and Google Home give brands exciting new opportunities to reach shoppers. L2’s recent report predicts that voice-based commerce will become a significant sales channel in the future, particularly in categories that require frequent product replenishment such as CPG and Household Cleaning.

Walmart and Google could lure large brands by promising more visibility than they would find on Amazon’s platform. Most products that Alexa currently suggests have the “Amazon’s Choice” designation; while 70% are sold by official brand partners, as many as 30% come from third-party merchants. Walmart’s voice strategy could more effectively guarantee that brand partners wouldn’t lose visibility to those third-party sellers.

In other words, WMT and GOOGL can attack the space a bit differently than Amazon by focusing on big-name brand products such as Tide detergent and Bounty paper towels. While Amazon will rely on its “Amazon Choice” designation to suggest products to voice users, Google can instead curate a selection of big brands, negotiating special deals with those product makers to be the preferred voice-enabled product choices.

And Walmart isn’t alone. Google has also inked similar shopping deals with Target, Costco, Kohl’s, Bed Bath & Beyond, PetSmart, Staples, Toys R Us, Walgreens, and several more. If the tech giant can achieve large scale with…

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