Friday, December 2, 2011

Google Wants to Control Three Check Points of eCommerce


Three main check points of online transactions:
  1. Search a product
  2. Pay for online transaction of the purchase 
  3. Specify a delivery method 

Google is talking with retailers such as Macy's, The Gap and Office Max to create partnerships that would offer users speedier shipping, according to The Wall Street Journal. If an online shopper bought a product from Macy's, for example, Google would guarantee that the item be shipped later that day.

"Google Inc. is aiming to challenge the e-commerce supremacy of Amazon.com Inc. by diving deeper into the fast-growing world of Internet retailing.

The Web-search giant is in talks with major retailers and shippers about creating a service that would let consumers shop for goods online and receive their orders within a day for a low fee, said people familiar with the matter.

The effort is a risky one, and would escalate Google's budding rivalry with Amazon, which has been riding the success of its $79-a-year Amazon Prime program. That program, which offers shoppers fast shipping at no additional charge for ..."



Quick delivery is a way that Google could compete aggressively with Amazon, whose Prime membership already offers members fast, free shipping for an annual fee. 


Google, until now, has been relying on search. At this point, they can keep track of what's going on, they know what people are buying. So wouldn't it be great if people are using their service to search, using them as a payment service and then using the delivery service?

All of that from Google is really closing the whole loop in e-commerce and taking the whole process to the next level. While Google is mainly working with a few big brands for this service for moment. It could also expend this service to small online brand owners.