Google must be more than the Bing of e-commerce to defeat Amazon

Trapped consumers who leave their homes in the next two months are likely to face a changing retail landscape, with fewer supermarkets and more e-commerce. About 90% of consumers have changed

Google must be more than the Bing of e-commerce

their buying behavior since the launch of COVID-19 and the transition to e-commerce should largely escape the current crisis.

Amazon is likely to get more powerful than it is today, but not without increasing antitrust control. On the other hand, many small online merchants have not benefited in the same way from COVID-supported online commerce.

Amazon has become a bigger threat to Google

Amazon's dominance as an online shopping destination and its growth as an advertising platform pose direct threats to Google. Although Seattle will never acquire or surpass Google in terms of 

advertising revenue, its market share, and growth may slowly decline. In some ways, Amazon is a more attractive competitor to Google than Facebook.

So Google is trying to upgrade its buying experience to better compete with Amazon, playing both offensive and defensive. Recently, Google announced the return of free product lists in Google Shopping, which are now being rolled out.

Retailers, now under the Shopping tab in the search results, will now have a new free channel to gain visibility and increase transactions. Google Bill Ready Trade Manager describes the benefits for merchants and consumers: "For retailers, this change means free exposure to the millions of people

who come to Google every day to meet their shopping needs. buyers, it means more products in more stores, It can be discovered via the Google Shopping tab. For advertisers, it means that paid campaigns can now be augmented with free ads.

Google Shopping: The pieces are there

This comes after a thorough overhaul and revival of Google Shopping last fall, which has been preparing for a long time. In some ways, the company has gone back to its commercial roots, but in 

other ways, it emulates the Amazon. To win, he has to beat Amazon in his own game and be different too; it's the same dilemma Bing faced and was unable to solve.

Google vs amazon
Google Cloud vs Amazon web services

Google Shopping was originally launched in 2002 as a catalog of products called "Froogle". It became Google Product Search, and in 2012, it changed its model and name again. In 2019, the new Google Shopping, officially launched in October, introduced a number of changes and innovations designed to meet the user experience with Amazon, including:

  • Personalization based on search history and other factors
  • Omnichannel shopping with local inventory options
  • The merger of Google Express and Google Shopping
  • Normalized shopping cart and checkout flow
  • Easy returns and the Google Guarantee

Differentiation and execution obstacles

These are the right moves. Purchasing a shopping cart and consolidating payment flows was a crucial decision, although many retailers may not have been satisfied with it. Personalization is another 

a major feature, although Amazon offers several layers of personalization. Google has a larger dataset than Amazon, which can generate different and better recommendations for personalization and purchases (but beware of the scary factor).

The inventory of omnichannel channels (local store data) is a major potential differential. No doubt, this is the only feature on the list that Amazon does not have and is not subject to change. It is Achilles' heel. However, to what extent Google is growing strongly and strengthening the inventory of local products remains to be seen.

There are several remaining areas that Google must address if it wants to catch Amazon:

  • Amazon Prime
  • Customer service
  • Product reviews
  • Making shopping “fun”
  • The brand issue
  • Consumer trust

Amazon Prime is, without a doubt, the most successful loyalty program ever. This stimulates spending and the frequency of purchase. Google will have difficulty neutralizing it.

Customer service is a difficult issue for Google; it's not in the company's DNA, while Amazon generally has excellent customer service. This is a major obstacle that will not be overcome by Google’s guarantee alone.

Product reviews are a critical area and opportunity. Google Shopping provides expert reviews; Amazon No. Amazon has a big problem with the fraud notice, which could eventually catch up. If 

Google becomes much more aggressive with regards to police checks, you may be able to market confidence as a differentiation point. I am skeptical about what will happen here, but expert advice is a big plus.

Google vs amazon
Google plans to beat amazon services

Here's another intangible problem for Google: Using Amazon is more "fun" than Google Shopping. This is the sum total of site functionality, inventory, content, and user interface. Google Shopping is 

very "Googly" - more left brain, attached and clean, but not "fun." Amazon is messier, but it offers more "purchasing power" and discovery. There is a possibility of surprise, such as browsing a real store. Google Shopping isn't talking about that.

The Bing challenge

Bing has developed a search experience that can be considered as good as Google Bing so far unable to acquire a stake beyond a certain point. We can discuss the cause, but I think the reason is that Bing 

greatly imitated Google and was not sufficiently different or better. Google owns the search mark and there was a lot of comfort and inertia to get away from it. The same could perhaps be said of Amazon, although the products are not mutually exclusive.

To beat Amazon, Google Shopping must match, if not exceed, the main capabilities and features of Amazon. Google also needs to create a stronger brand for purchases. A brand is an expression of 

various factors: quality, service, user experience, personality, trust, etc. Amazon is the most trusted shopping site and one of the most trusted businesses in the U.S. (see here, here, and here). Google is not too far, but it is lagging behind.

Google Shopping is an enhanced product. But it would take almost perfect execution on multiple fronts to catch Amazon. Some may say that Google does not need to catch or overcome Amazon. Just keep your search users shopping (and advertisers). Therefore, being a "good enough" number may be sufficient. Maybe.

Google has also positioned itself as a leader in the anti-Amazon retail alliance. It's not a bad strategy, but Google's tough challenge is to make Google Shopping a brand destination with consistent user experience, but not to cut retailers into just runners.

Even getting a partial list of these things is very difficult, even for Google. This requires levels of commitment that society may be unwilling or unable to afford during a period of limited budgets and economic uncertainty.

Previous Post Next Post