How Amazon sold 5 million of Echo devices in two years?

Echo has been over two years since its release in November, 2014. In the past two years, Echo becomes the most popular smart home appliances in the market.


Consumer Intelligence Research Partners(CIRP) reported that Amazon sold 5.1 million Echo devices in United States by November 21, 2016.

CIRP made a report in April and revealed the sales of Echo reached 3 million units in United States then. That is, the sales of Echo increased by 2 million in past 7 and a half of months.

According to the prediction of CIRP made, Amazon sold about 2 million Echo devices by September, 2016. With the sales increase, the customer awareness of Amazon Echo devices increased sharply as well. The customer awareness of Amazon Echo increased from 20% in March, 2015 to 69% in September, 2016. Its customer awareness increased obviously in the past year.

CIRP also made survey concerning how consumers use Amazon Echo. Based on Echo’s multiple responses allowed, one third users apply it for information, and 40% of users apply it to listen music, and 10% of them apply it to control home appliances.

Amazon did not rush to promote Echo after its release. It invited a group of users from Prime subscribers to do close beta test and offered reasonable price. The Prime subscribers could get a Echo at $99, which was sold at $199.

Amazon collected feedback from beta test users and made improvements based on them. The initial version of Echo did not include smart assistant Alexa. Echo team found that consumers were interested in such function and they launched Alexa API skills kit.

Slice Intelligence found that the sales of Echo made a hit in November, 2015. Amazon kept improving its functions after the release of Alexa, such as Prime Music, Audible book and Google Calendar. The sales increase was also associated with holiday promotions. Amazon announced on November 10, 2015 that consumers could experience Echo at 3,000 offline stores in United States before they made decision to purchase it. The chain stores included The Home Depot, Staples and Sears. Amazon offered discount to Echo on Cyber Monday to stimulate more sales.

This March, Amazon released two new products named Echo Dot and Amazon Tap on the basis of Echo audio speaker. Amazon Tap is portable, smaller and built with Alexa assistant. It shares with the similar function of Echo if Amazon Tap accesses to Wi-Fi.

Home Appliance has promising aspects. Google also followed the pace of Amazon to explore smart home appliance. It released Google Home to compete with Amazon Echo.

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