Google Bringing The Retail Fight To Amazon

If you want to read my thoughts, please read below. If you want to read the article that prompted this blog post, go visit here.

Okay Google…We’re impressed…

With Google making a vehement amount of money in ad revenue, its newest decision isn’t straying from its successful profiting strategy. When developing new ideas, looking towards trends and key insight is typically a prosperous method. In Google’s case, one key insight came from two online search trends. The first is “Where can I buy this? Where can I find this?” and “How can I buy it?” are actively searched by tens of millions of people. The second, is that the destination page a majority of those inquisitors find themselves on is Amazon.

So rather than hearing it from me, take what Google is doing straight from the PC magazine article I read it from:

“To counter that trend while generating a new stream of revenue, Google is offering to partner with any and all retailers. In return for a cut of the purchase price, Google will allow retailers to list their products in search results, the Google Express shopping service, and on Google Assistant. There will also be a link to retailer loyalty programs.” – PCMag

The new program, called Shopping Actions, is opening partnerships with all retailers, allowing them to increase loyalty, have one-click reordering, personalized recommendations, and basket building, giving Google a portion of the basket in this “pay-per-sale” model. Different from their “pay-per-click” ad revenue which brings tens of millions of people to Amazon’s webpage, Google is opening an online conglomerate of retailers.

“Ulta Beauty’s average order value has jumped 35 percent since partnering with Google, Chief Executive Officer Mary Dillon said…Over the past six months, Target said the number of items in shoppers’ Google Express baskets have increased by nearly 20 percent, on average, as a result of its tie-up with the internet company.” – Reuters

In essence, the program works. Why? Ask TechCrunch.

“The program offers online shoppers a universal cart whether they’re shopping on mobile, desktop or via a voice-powered device. That latter item is especially important to retailers, given that Amazon has tied voice shopping to its Echo devices, and has claimed the majority of market share in smart speakers for the time being. And you aren’t able to shop Walmart from an Echo, of course.” – TechCrunch

Google announced yesterday their plan for Shopping Actions. This program is now open to any and all retailers. With Amazon being the Goliath taking down thousands of smaller retailers and hundreds of bigger ones dozens at a time, Google is the people’s champion in this fight. Who will team up next?

 

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