Published in News
Google plans war on Amazon
by Nick Farrell on02 December 2011
Worried about the loss of traffic to the outfit
Search engine outfit Google is thinking about setting up an internet service to help consumers shop online and take advantage of same-day delivery. The move could be the first shots in a war to stop the loss of Web traffic to Amazon.com.
According to the Wall Street Journal, the Internet search leader is in talks with major retailers and shippers, including Macy's, Gap and OfficeMax, to set up the service. No one else has commented, but it all makes sense. Google is worried about Amazon.com's Prime service which offers free two-day shipping for $79 a year in the US.
More than 40 percent of Google's revenue comes from retail sources and Amazon Prime has been such a big success in recent years. If the WSJ is right then Google will instead work 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.
That new feature is designed to determine if a nearby physical store has a desired product in stock. Google could then offer the consumer an option to receive their goods within a day or two, for a fee, the newspaper said.