Internet Google Jumps Into E-Tailing with New Shipping Service, Looks to Rival Amazon Prime
Tiffany Kaiser - December 2, 2011 11:01 AM
7 comment(s) - last by jacknhut.. on Dec 4 at 4:41 AM
Google hopes to challenge Amazon Prime's free two-day shipping
Just as Amazon, who has strong e-tailer roots, delved into the tablet arena for the first time this year, Google is pulling the opposite by stepping out of its mobile comfort zone to give e-tailing a shot.
Google is reportedly creating a shipping service that will compete with Amazon. The Web search/mobile giant is already in talks with well-known retailers like OfficeMax, Gap Inc. and Macy's.
Google is specifically interested in going head-to-head with Amazon Prime, which is a $79 annual service offered by Amazon that allows customers to receive free two-day shipping and access to thousands of movies and TV shows as well as the new Kindle Owner's Lending Library.
Google relies on retail for 40 percent of its revenue, according to Reuters, and Amazon Prime has become more of a threat as its success heightens.
According to Scot Wingo, chief executive of e-commerce company ChannelAdvisor, a customer who signs up for Amazon Prime typically only shops with Amazon for the duration of their membership.
"Once a consumer joins Amazon Prime, their searches for products at Google have to decrease precipitously," said Wingo. "As a Prime user, I only look for products on Google and other channels if I can't find it on Amazon. Amazon has created a lock-in and they have the world's best product search engine. That's 40 percent of the Internet that Google really can't afford to lose serious share on."
Google already has a plan in mind. Its new Amazon rival will be much different from Amazon's set-up, though. Instead of having a website of its own, Google will simply integrate its brand-new shipping service into retail websites like Macys.com.
When a customer is browsing a specific retail website and chooses to check out, Google's new shipping service will determine if the physical store closest to the customer has the item. Then the customer can choose if they want it shipped to them within 1-2 days for a fee, which is aimed to rival Amazon Prime's two-day shipping.
Google plans to test the new shipping service in the San Francisco Bay area first before it is released nationwide.
Sources: The Wall Street Journal , Reuters
[Collapse Comment] Umm Google you are missing the point of Amazon.com
By Kurz on 12/2/2011 11:20:26 AM , Rating: 5
Besides the two day shipping, Amazon's Prices typically have some of the cheapest on the net. You can't just offer a service of two-day shipping if it already costs so much more to buy from Officemax or Macy's.
Speaking from buying Electronics.
[Collapse Comment] RE: Umm Google you are missing the point of Amazon.com
By KentState on 12/2/2011 12:40:38 PM , Rating: 5
Amazon is also a consistent and reliable shopping experience. With each order, I know my package will arrive, money will correctly be charged and returns or exchanges will not be a hassle. If I do have a problem, I also know that I will receive top notch customer service mostly within a few minutes of sending an email. At times, I will pay a buck or two more at Amazon over Newegg because I know exactly when the product will ship and be delivered.
[Collapse Comment] Not the best product search engine
By Solandri on 12/2/2011 2:11:56 PM , Rating: 4
Amazon has created a lock-in and they have the world's best product search engine.
No they don't, not by a long shot. Try searching Amazon for 2tb seagate internal hard drive. You'll find the search results polluted with items which match some but not all of those terms. So there will be Western Digital 2TB internal hard drives, external 2TB drives, etc.
Amazon ORs your search terms together. I haven't figured out a way to AND them. Using quotes seems to just increase priority - you still get polluted results. And no, using AND between the words doesn't work either.
Consequently if I'm looking for only 2TB Seagate internal hard drives, it's a lot easier to find them on Newegg. Google Shopping also seems to correctly AND your search terms. Most of the time it's actually easier for me to search for the item via Google, then click through to Amazon's result.
[Collapse Comment] RE: Not the best product search engine
By Kurz on 12/2/2011 2:36:04 PM , Rating: 2
Better to use Model Numbers whenever you are looking for something on Amazon.
[Collapse Comment] RE: Not the best product search engine
By its tom hanks on 12/3/2011 10:47:53 AM , Rating: 2
I haven't figured out a way to AND them
ever notice the left pane with categories such as "brand", "features", "rating", and the accompanying check boxes? it pretty much "ands" it up for you, without even making you think of the terms. type in "hard drive", and you can "and" the capacity, form factor, brand, rpm speed, sata version, average review, price range, shipping... etc. what exactly haven't you figured out how to "and"?
and come on, they even have an "internal hard drive" section to search within. if you're gonna complain about something, learn about it first. and i searched this "internal hard drive section" for your polluted search term "2tb seagate internal hard drive", and the first 4 results were varying models of 2 TB internal hard drives made by seagate. now which 2tb internal seagate hdd are you having a hard time finding through your polluted results?
[Collapse Comment] is this possible?
By kattanna on 12/2/2011 11:20:43 AM , Rating: 5
if I can't find it on Amazon
just what is one looking for that cannot be found on amazon? LOL
[Collapse Comment] Beware of the Amazon generous return, not as generous as you think
By jacknhut on 12/4/2011 4:41:27 AM , Rating: 2
Amazon customer service seems to be very generous when it comes to return/refund. However, there is a catch and it is extremely vital. If you return many of the items that you bought from Amazon, (they will let you do it happily via their website/customer serivce), but your account will be flagged by Amazon account specialist and they will ban (without warning) your account and any account(friends/relatives/family) related to your billing address for life. This happenned to many Amazon customers who returned products that they don't want. Google Amazon account closure and you will find out.
Next time if you decided to return something from Amazon, don't be fooled by their easy return/refund website. Granted if you only returned 1 or twice a year thats nothing to worry about. But if you are a picky customer and return a lot due to various reasons, be warned.
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