Google quietly sets out to headhunt Amazon’s shoppers
GOOGLE is pondering an internet service to help consumers shop online and take advantage of same-day delivery, hoping to curb the loss of Web traffic to Amazon.com, the Wall Street Journal reported this week.
The internet search leader is in talks with major retailers and shippers, including Macy’s, Gap and Officemax, to set up the service, the newspaper cited sources as saying.
Google declined to comment and Amazon did not return calls for comment. A Gap spokesperson declined to comment, while Macy’s and OfficeMax were not available for comment.
Google may be casting a wary eye on the popularity of Amazon’s Prime service – which offers free two-day shipping for $79 a year in the US – fearing it will entice away the web traffic it depends on from its own sites.
About 40 percent of Google’s revenue comes from retail sources, according to Scot Wingo, chief executive of e- commerce company Channeladvisor.
He explained that Amazon Prime had been such a big success in recent years that it had b egun to threaten this big chunk of Google’s revenue.
“Once a consumer joins Amazon Prime, their searches for products at Google have to decrease precipitously,” Wingo wrote in a blog on Thursday.
He owns Google and Amazon shares.
“As a Prime user, I only look for products on Google and other channels if I can’t find it on Amazon,” Wingo added.
“Amazon has created a lockin 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’s plan under consideration stops short of selling directly to consumers, the Wall Street Journal said.
Google will instead work with retailers’ websites. –