E-Commerce: Why Amazon should be wary of Google

Google Shopping influences a large part of e-commerce volume
Google along with retailers against Amazon
22 percent of buyers start product searches on Google

Amazon is the undisputed leader in online shopping in the western world. Retailers and smaller shops often give in and offer their products for sale at the “big A” instead of in their own shops. However, there is one group that could pose a threat to Amazon in the area of ​​e-commerce: we are talking about Alphabet and its core product, the search engine Google with all its possible applications and sub-products.

Google competes alongside retailers against Amazon

“With Google Shopping already driving about a third of e-commerce volume, it should become an even more important growth driver for Alphabet as an alternative to marketplaces,” Baird analyst Colin Sebastian said in a note to investors. In his opinion, Google’s shopping offer could become a real – and probably the only serious – competitor for Amazon.

Because as a shopping place that provides products from a wide variety of manufacturers and retailers, Google could team up with every single retailer who wants to compete against Amazon – and thus become the biggest competitor, explains the website “The Motley Fool” the statements of the Baird analysts.

49 percent of shoppers start product searches on Amazon

The search for products does not lead most prospective buyers directly to the website of the manufacturer of a product, but is usually only searched via the large portals. A survey by Civic Science is said to have shown that 49 percent of buyers start their product search on Amazon. The e-commerce giant is thus making a good showing.

According to the survey, only 22 percent of respondents start product searches on Google. The rest is then broken down into various other sites – 16 percent said they don’t shop much online and were left out as a result. With the 13 percent who may start their product search directly on the manufacturer’s website, the individual retailer has little chance of establishing itself against Amazon. With the 22 percent of searchers who start their product search on Google Shopping, he could easily win customers for his own shop.

There is potential as an e-commerce giant

The fact that Alphabet has also recognized the potential of its e-commerce area is shown by the fact that Google Shopping now operates as its own brand and the search engine giant was able to win over former PayPal COO Bill Ready for the project in order to further expand its competencies.

An advantage that Google offers over Amazon: Not only is a pure text search possible here, but the search for products can also be carried out visually using images. With Instagram and Pinterest growing in popularity, visual product search is on the rise. Whether or not Google turns out to be a true competitor for Amazon remains to be seen. The fact is: the potential is there.

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