Google vs. Amazon: User Wars

By Tinuiti Team

In the movie Tron, there is a great climactic ending scene in which Tron uses his last labored breath to say: “I fight for the users.”

Amazon and Google aren’t fighting each other for ecommerce dominance, but fighting to create a better experience for users.

Google vs. Amazon: User utility

Google vs. Amazon: User Generated Revenue

This quarter, Q2 2013, Amazon saw a 22% sales increase, while Google reported a 19% increase in revenue.

Here is a breakdown of revenue metrics and projections for both Google and Amazon for Q2 2013:

Q2 2013 Income (billions of $) Expected Revenue (billions of $) Income Loss/ Gain
Google 14.1 14.4 +3 billion
Amazon 15.7 15.7 -7 million

Although Google didn’t hit earnings estimates, Google’s CEO Larry Page emphasis was on improving people’s lives:

“With more devices, more information, and more activity online than ever, the potential to improve people’s lives even more is immense.”

Despite Amazon’s high revenue for Q2 2013, Amazon’s operational costs caused the company to fall short of profits this quarter. In response to an overall loss, Amazon’s SVP Thomas J. Szutak stressed costs as a reflection of a better user experience:

“The increase in capital expenditures reflects additional investments in support of continued business growth consisting of investments in technology, infrastructure including Amazon Web Services and additional capacity to support our fulfillment operations.”

Google vs. Amazon: Ventures

Both Google and Amazon are known for experimenting with different ecommerce ventures, as well as projects in areas outside of sales, including media, sharing, and countless other verticals. Experimenting with programs outside of their core business to provide utility for users.

Here is a look at some of the many verticals where Google and Amazon working to create a better user experience:

Google or Amazon Ventures  Google Amazon
Online Ads
Social Google Plus, Youtube
Video Youtube
Fulfillment Same Day Delivery, Google Shopping Express, Google Shopping For Suppliers Amazon Prime, Expanding fulfillment centers, Amazon Supply
Tablets Nexuz 7 (with Jelly Bean Android 4.3) Kindle Fire HD 2
Cloud Storage Google Cloud Storage, Google Compute Engine Amazon Elastic Compute Cloud
Media Google Music Amazon Prime, Cloud Player
Books Google Selling Digital Textbooks, Amazon Prime
Mobile Moto X smartphone launching this summer Rumored smartphone 
Daily Deals Google Offers Living Social, Amazon Local
Other Ventures Gmail,Google Wallet, Google/Dish wireless partnerships, Google glass, Google maps Amazon login

Google vs. Amazon Stock

Google vs. Amazon Stock, user experience focus

Companies which inspire and delight users can also see those gains financially. Both Google and Amazon are focused on creating better services, experiences and resources for online shoppers.

Google Stock for Q2 2013: Google’s stock price is currently hovering at $900/share, which is 41.1% higher than it was this time a year ago.
Amazon Stock for Q2 2013: AMZN currently sits at right around $300/share, which is about 23% higher than it was this time last year.

Both Google and Amazon are constantly aiming to put better user features out there, but it’s also important to note that other major companies such as Apple and Facebook are also involved in the user battle, creating content, operating systems, hardware and other ecommerce elements which are designed to help the user.

Google vs. Amazon: Who do you think has the better user experience?



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