Google is studying moves that would put it more directly in competition with Amazon in the e-commerce space, according to the Wall Street Journal. It’s concerned that Amazon is becoming a search engine for shoppers, who are bypassing Google and just going straight to Amazon when they want to buy something. A Forester Research study found that 39% of U.S. online shoppers go straight to Amazon to research purchases, and only 11% used search engines such as Google, according to the report.
In the past, the Google Shopping site has referred potential buyers to merchants’ websites. The changes being contemplated would put a “buy” button on the Google Shopping site, allowing it to complete the transaction on behalf of the retailer, than transmitting the order for shipment. Facebook and Twitter are already contemplating “buy” buttons on their sites, according to the report. The Google service would be differentiated from the services Amazon offers its third-party sellers because Google does not also sell on its own behalf, as Amazon does, and Google may share customer data with the retailers shipping the order (which Amazon does not).
Another change would assemble a group of retailers that would offer two-day shipping under the Google umbrella.
Whether or not Google moves ahead with these or other changes, it seems clear that there’s growing concern about the concentration of e-commerce power at Amazon.
Against Amazon
Posted by ICv2 on December 16, 2014 @ 2:55 am CT
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