Techcrunch is reporting that Google may be launching a competitor to Amazon Prime which offers same day delivery “from brick mortar stores like Target, Walmart, Walgreens and Safeway” for $59/year.
While it’s no secret that Google is trying to get itself heavily involved the eCommerce space, the direction that it’s going in is and has always been a mystery to us (and perhaps to Google themselves).
I think if Google wants to enter the marketplace space they certainly are more than capable of doing so, and Amazon should be extremely worried.
Here’s what they have in their favor:
- Via their Google Shopping program they already have access to tens of thousands of online retailers and their product data which is collected from feeds.
- Along those lines, merchants are now more likely to install Google’s conversion tracker, so Google knows exactly what’s selling, at what rate, to what type of demographic, etc., on top of what they see with Google Analytics.
- Expanding even further, Google Checkout also allows them to do this information, which can eventually be used to create a 1-click buy method as well.
- And to drive home the point, Google’s bread and butter, their search data gives them ability to know exactly what users want and what’s in demand at any given time down to the second.
- No matter how good the Amazon’s SEO is (they’re generally near the top for product searches), Google’s ads and one-boxes will always trump natural search listings from any website.
- Imagine in one of Google’s ad placements there’s a “buy now” button, a user can potentially type something in their search bar, click a button and have it
shippeddelivered the same day. Currently a user has to go to Amazon (possibly through Google), search for what they want, click on the product page, and then 1-click buy.
- Google’s recent products have been aimed exclusively at ecommerce, from paid Google Shopping, product reviews, Google Trusted Stores, etc.
- Size: As big as Amazon has become, Google’s market value is still over twice as big, and can basically do anything they want to. If they can build a self driving car that’s gone 100k+ miles with just one accident as a side project, then taking on a marketplace should be cake.
- Size part 2: Google’s traffic just eclipses Amazon’s in every way possible. As it stands a major portion of Amazon’s traffic comes directly from Google, what if the consumer doesn’t have a need to go to Amazon?
- Google+ (which is still around in case you didn’t notice) can be used in their favor too. Using consumer habits, search behavior, purchase history, etc. Google can have businesses promote their products/deals in a user’s Google+ page (something Facebook is not able to do as well). If your purchases are done through your regular Google account, imagine the power they’d have to bombard you with what they think you want.
- Bonus: Retailers tired of dealing with Amazon’s business practices may be looking for a fresh start, and certainly we think Google will welcome the unhappy nomads with open-arms, while still putting the consumer first.
So certainly Google has the how, particularly with Google Shopping evolving as it is now, and certainly the why (hint: revenue), as we look at their recent history in launching products which are targeted with growing their ecommerce side.
The possibilities are endless.
Paired up with a (Google) Android phone (or even Google Glasses), one can in theory go to a store, take a picture of a product and use Google’s reverse image search algorithm to find the product, then with the help of Google Shopping/Google’s new Marketplace find it at the cheapest price, then based on the users Google search history find related items they’d like, and finally with a press of a button make a purchase through their Google Account which is linked to their Google Wallet account, and then have that product delivered to their house before they even arrive home in their self-driving Google car.
As Walter White told Jesse Pinkman he’s not in the money business, but the “empire business.”
Will ecommerce become Google’s Meth?