Google looks to topple Amazon as top online retailer

There seems to be few areas of the internet Google doesn’t dominate, but when it comes to shopping there’s no doubt Amazon is king. The search engine giant is looking to change this however and the Wall Street Journal is reporting that it is working on a service that will challenge Amazon’s Prime.

Currently Amazon Prime offers a two-day delivery service on any item for an annual fee of £49. For Amazon the Prime delivery option has proved hugely successful and is reported to have been responsible for a 42 percent increase in sales in the first nine months of 2011. While Google wouldn’t be supplying the goods directly it plans to work with retailers to ensure next day delivery to customers for a small fee.

Such a move isn’t without its dangers for Google – for instance, if the service does take off, it could seriously affect the way the online giant is perceived by users. Most people think of the search engine and its satellite services as a free product but if they start paying for part of the experience and don’t get their goods delivered in the time frame promised, then it could damage their trust in Google in general.

Amazon has a 17-year head start on Google which means 17 years more trust amongst it customers. While Google has its own product search which is currently in its beta stages, consumers are increasingly turning to Amazon to do those searches too and it is often a first stop for product reviews as well. But interestingly, if the plans do go ahead it could be good news for local businesses as the Google system would search for the product nearest to the customer – whether it is in a big chain store or a smaller business.

The new service is still in its early stages though and it’s reported that Google is in talks with Macy’s, Gap and Office Max in the US, with a test run planned in the San Francisco area. Of course just because Google puts it mind to something doesn’t necessarily mean it’s going to be successful. Google TV, Google Checkout and Google wallet are all recent innovations that have been less popular than the company would have liked but again, only time will tell whether this will take off or go down the same route as these.

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