Amazon announced during its third-quarter earnings call that Alexa for Shopping has reached more than 400 million active users in the last 12 months, up from 350 million at the end of July. CEO Andy Jassy highlighted that customers using Alexa for Shopping spend 50% more than those who do not, underscoring the tool's impact on transaction value and customer engagement.
The company has significantly expanded Alexa for Shopping's capabilities and visibility since rebranding it from Rufus in May. Amazon announced more than 100 new capabilities ahead of the holiday season, including the ability to create and edit gift lists and registries, and manage Subscribe and Save subscriptions. This expansion reflects Amazon's strategy to position Alexa for Shopping as the primary shopping agent for its customer base, with CEO Jassy stating the company believes Alexa for Shopping will be the primary shopping agent customers use to shop Amazon, even as the company anticipates working with horizontal agents in the future.
The growth in Alexa for Shopping usage is particularly significant as Amazon's broader e-commerce growth has slowed. Online Stores revenue grew only 2% year over year in Q3, while advertising and third-party seller services grew 24% and 12% respectively. Conversational AI shopping assistants have become a key growth lever for Amazon as it seeks to drive incremental sales in a maturing market.