Friday, January 20, 2012
Google Ready to Compete with Amazon in E-Commerce
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INTERNET
Not satisfied to be the king of search engines (search engines), Google are now eyeing the throne as ruler of online retailer Amazon. A number of large retailers were approached by Google to try his luck in the field of e-commerce.
As quoted from the pages of the Wall Street Journal, and had serious talks with a number of retailers, Google has also approached the shipping company. Thus, Google can be a provider of online retailers that service delivery can be done in a day, with a cheaper fare.
A number of retailers expressed interest in and ready to work together, because Google so far has been well recognized by the community. Retailers that include Macy's, Gap, and OfficeMax.
"They approached us and talked about the idea. But we have not made any decision," said a spokeswoman for Macy's, as quoted by the Wall Street Journal. When asked the same thing, and OfficeMax Gap spokeswoman declined to comment.
Meanwhile, a source who knew about these plans say, Google does not plan to sell products directly to consumers. But Google will prepare features on its search engine, which will direct consumers to the retailer's site. Then, the role of Google is a system of shipping services that enable faster delivery.
In providing this delivery service, Google is also reportedly preparing cooperation with shipping companies and national or local distribution. One is United Parcel Service. But UPS spokesman declined to comment about this news.
By developing a system for faster shipments, Google is eyeing the industry's growing online retailers in the United States. This year for example, the online retail industry is expected to increase by 12 percent, reaching U.S. $ 197 billion. And Amazon is the dominant player in this industry.
If Google did this, then Google's competition with Amazon will be open. Because of all this Google and Amazon have product differentiation. Google has been the focus of a search engine, while Amazon and bring focus to selling their products to consumers online.
Competition began to appear when Google started to 'challenge' Amazon to sell digital products directly to consumers, one of which is the ebook. But Google still far behind in terms of sales with Amazon's digital content, including ebooks and movies.
Moreover, after Amazon launched the Kindle Fire tablet, which allows users to download Amazon's products more easily. Interestingly, the Kindle Fire is a tablet based on Android, Google's operating system.
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