Google may have a master plan to take down Amazon

Google may have a master plan to take down Amazon

Google may have a master plan to take down Amazon

Alphabet Inc's Google routinely fields product queries from millions of shoppers. In exchange for the listings, the search giant gets a cut on each purchase.

According to Reuters, Alphabet's Google is set to team up with a number of leading U.S. retailers including Target, Walmart, Home Depot and Costco Wholesale in the aim of generating revenues from product searches that take place across its platforms.

Google has been trying to help retailers compete with Amazon Prime through Google Express, which lets shoppers order items and have them delivered quickly (same-day to 3-day options) and cheaply (free with minimum per-store order as low as $25). Plus, with Google claiming most people end up defaulting to Amazon eventually anyway, extra exposure for everyone else is an excellent incentive to take part. These users usually type in phrases like "Where can I buy this?' or 'How can I buy this?'" "How do I transact?"

Google may have a master plan to take down Amazon

Reuters has the scoop on Google's plans.

The number of searches containing the phase "how to buy" grew by a 85 percent in the past two years, according to Google.

Google is said to be readying a new program to help consumers decide where to shop. It also depends on whether Shopping Actions can really be a "seamless shopping experience" like retailers and Google are hoping it will be.

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For retailers, Google said that Shopping Actions uses a pay-per-sale model, "meaning you only pay when a sale actually takes place". "We see ourselves as part of a solution for retailers to be able to drive better transactions ... and get closer to the consumer". Further, the company added: "44% of those who use their voice-activated speaker at least weekly say they use the device to order products they need like groceries and household items at least once a week". The Shopping Actions program is open to all retailers based in the United States regardless of their size. Ulta sells makeup and skin care products from brands such as MAC, Estee Lauder and Clinique.

A Google search for "rubber duck" serves an Amazon link as the third result. Reuters calls voice search on smart home devices "the next frontier for e-commerce". Amazon's Alexa platform could generate $10 billion in revenues by 2020, a separate report from RBC Capital Markets estimated. All retailers will be able to access the program not just the big-box ones, a company spokesperson said.

"This is just the beginning for Target and Google", said Target's Chief Information and Digital Officer added.

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