Google is making every field competitive in this tech world and its latest muse is to compete with Amazon.com’s Prime service. The search engine giant is bombing another service in the tech world, which will help consumers shop online and take advantage of same-day delivery. The Wall Street Journal reported on Thursday that with such efforts, Google would be attempting to eat a considerable share of Web traffic which routes to Amazon.com Inc.
WSJ even said that Google is in talks with major retailers and shippers, including Macy’s, Gap Inc and OfficeMax, so that it can set up the service. A Gap spokeswoman declined to comment, while Macy’s and OfficeMax were not available for comment. It was even noted that Amazon did not return calls for comment, while Google declined to comment.
Google is definitely eying Amazon’s superior service, which is offered to users in the U.S. for $70 and along with it even offers free two-day shipping. Maybe it fears that Amazon, at some stage later on, might entice away the Web traffic it depends on from its own sites.
Currently, about 40 per cent of Google’s revenue comes from retail sources, as it was noted by Scot Wingo, chief executive of e-commerce company ChannelAdvisor.
Wingo detailed his thoughts on the possible rivalry as he mentioned that Amazon Prime has been such a big success in recent years that it has begun to threaten this big chunk of Google’s revenue. He wrote in a blog on Thursday, “Once a consumer joins Amazon Prime, their searches for products at Google have to decrease precipitously.” He even added, “As a Prime user, I only look for products on Google and other channels if I can’t find it on Amazon. Amazon has created a lock-in and they have the world’s best product search engine. That’s 40 per cent of the Internet that Google really can’t afford to lose serious share on.”
WSJ even stated that the search engine giant will try working its efforts with retailers’ websites, combining an existing product-search feature that directs shoppers to those sites, with a new shipping service that it intends to create and oversee.
It was even noted that the new feature is designed in a way to determine if a nearby physical store has a desired product in stock. Expectedly, Google could then even offer the consumer an option to receive their goods within a day or two, for a fee. Moreover, the search engine giant has plans to have a test trial in the San Francisco Bay area for the new initiative, which could also involve United Parcel Service Inc.
Eric Best, chief executive of e-commerce firm Mercent said that Google still dominates when shoppers are searching for products to buy on the Internet. Again, handling the next steps, such as purchasing and getting items delivered, would definitely make sense. Best said, “Ensuring third-party partners perform to high service levels will be the biggest execution risk. Consumers will need to have a similar experience to what they already get with Amazon.”
Â