• Home
  • Investing
  • About
  • Contact
Menu

Economix101

  • Home
  • Investing
  • About
  • Contact
Google.jpg

Amazon's Newest Threat

July 1, 2014

Google (GOOG) Express Shopping has taken a giant leap to become a stronger competitor to Amazon (AMZN) with its newly implemented same-day shipping service. Although Google Express Shopping is still inferior, in some aspects, to other online retailers (i.e. its currently small distribution infrastructure), it has many components that make it a strong alternative to the online shopping overlord known as Amazon (read more about superior E-Commerce investments here).

Google Express Shopping launched in the Bay Area in late 2013. It has recently expanded to Manhattan, West Los Angeles, and other parts of Northern California. Google offers many of the same services that Amazon offers, such as same-day and overnight shipping options. However, one of the most significant updates to Google’s service is its new option for the same-day delivery of alcohol (although there are a few restrictions).

Google’s success stems from its partnerships with retailers, such as Walgreens (WAG), Whole Foods (WFM), and Target (TGT), and customer data acquired via its online search engine. Google’s prestige and influence will allow the company to pursue more strategic partnerships with other powerhouse retailers to build strong, mutually beneficial relationships; these retailers may include Safeway (SWY), Best Buy (BBY), and Wal-Mart (WMT). Google also has an advantage over other online retailers because those companies pay Google to promote and publicize their services. Google could easily place its products and services ahead of its competitors so as to steer shoppers to its website. 

Although Google has many advertising advantages, it also has many weaknesses. The chief concern surrounding Google’s Express Shipping is its high delivery fees. Surely for groceries and perishable goods, customers would be willing to pay a premium for quick delivery; as for other non-perishable goods, many consumers will choose to wait one or two days for their product. Amazon Prime, an extremely popular and proven E-Commerce service, offers free two day shipping on many of its items. This shipping membership has proven far more desirable than individual shipping fees.

Although there are other online retailers that do same-day delivery (Uber Rush, Amazon Fresh, eBay Now), Google’s world-renowned name, and endless resources, will help it become an elite retailer. However, it is up to consumers to decide if they are willing to pay more for the expedited service.

In Apps, E-Commerce, Retail, Tech, Stock Market Tags Google, Amazon, Walgreens, Whole Foods, Target, Safeway, Best Buy, Wal-Mart, Shopping, Mobile, Investing
← Seriously, You're Not On LinkedIn?Creative Destruction →

Show Your Support

Please help us achieve worldwide financial literacy. Everyone deserves an economic education; follow and share our content across social media so that we aren't forced to advertise. Thanks.

Make & save money with Wealthfront.

Home RSS
Trending Authors
  • Jackson Moses
  • Ryan Vertelney
  • Zac Cherin
  • Spencer Drazovich
  • Jacob Grant

Trending Articles

Home
Dear World, LinkedIn Is Not Facebook
Dear World, LinkedIn Is Not Facebook
about 9 years ago
15 Reasons To Love Alibaba Stock
15 Reasons To Love Alibaba Stock
about 9 years ago
You're Missing Out On $100,000s
You're Missing Out On $100,000s
about 10 years ago
Building America's Next Bomber
Building America's Next Bomber
about 10 years ago
Uber Beats Facebook To $50B Valuation
Uber Beats Facebook To $50B Valuation
about 10 years ago
Marshawn Lynch Stars In Black Ops
Marshawn Lynch Stars In Black Ops
about 10 years ago
Taylor Swift & Apple Have Bad Blood
Taylor Swift & Apple Have Bad Blood
about 10 years ago
Netflix Is On Fire
Netflix Is On Fire
about 10 years ago
Who Actually Owns Jack Daniels?
Who Actually Owns Jack Daniels?
about 10 years ago
America's Most Secretive Company
America's Most Secretive Company
about 10 years ago

Home RSS

Brief Disclaimer: Economix101, Inc. is not an officially licensed analyst/research firm; moreover, investing is a risky endeavor. There is no guarantee that you will make money. There is a very real chance that you will lose money. This site, and its many contents, is to be used as an investment research tool, and nothing more. Please consider all risks before investing. All decisions are made of your own volition. By using this site, you agree to the following terms set out in the below "Terms of Service" agreement, specifically that Economix101, Inc. (and its affiliates) is not responsible for any sustained losses directly or indirectly associated with this site.

Terms of Service  |  Privacy Policy  |  Social Media

Copyright ©2015-2020 Economix101, Inc. All Rights Reserved.