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September 10, 2012

Shopping Online: Google vs. Amazon

By Julie Griffin, Contributing Writer

There are dozens of reasons why smart consumers go to the local shopping mall, but going with the intention of comparing prices for a desired item is doubtfully one of them.

Smart consumers in fact go online because there is always a better deal to be found somewhere in cyberspace. The question now is, Amazon or Google (News - Alert)?

A recent article in the New York Times suggests the war between Google and Amazon over e-commerce is essentially depriving the consumer of the opportunity to see the whole scale of online products. Although one might think that Google, as a trusted search engine, would have the upper hand, many consumers are using Amazon as their search engine for shopping.

In fact, the amount of consumers who opt to start their search with Amazon has increased by 73 percent in the last year, while Google saw no increase.

Recent developments to Google’s advertising strategies suggest Google wants to function more like an online retailer, and Amazon is its biggest threat. Last month, one source even speculated that Google has plans to use their fleet of vehicles intended for Google Maps, to also function as a same-day delivery service – something both Amazon and Ebay only offer in select cities. 

Image via Shutterstock

An employee of Macy’s even confirmed that a discussion about a partnership took place between the retailer and Google.

One of Google’s strategies to improve the quality of online shopping has been to charge online retailers to advertise. Google’s theory is that when advertising was a free service, retailers were less likely to update their prices and inventory. Needless to say, some retailers are not happy about the new fees.

Interestingly, some people speculate that Amazon is actually one of Google’s clients, paying Google to maintain their position on the list.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2012, taking place Oct. 2-5, in Austin, TX. Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.

Edited by Braden Becker
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