Google partnering with Shopify will be a direct competition with Amazon.
Google’s partnership with Shopify is “centric and a masterstroke,” experts say. Especially, if Google wants to prosper in e-commerce and direct challenge Amazon.
The Californian company cleared that it is collaborating with the Canadian e-commerce giant amid Google I/O. Google stated that it will let more vendors selling across the properties of a search engine giant. And Shopify’s 1.7 million vendors will conveniently be capable to list where Google sells. Merchants can be able to sell on Shopping sites, along with on Maps and YouTube.
“With only some clicks, these merchants can sign up to seem across Google,” said Bill Ready. Ready is the president of commerce at Google.
Levy, a tech analyst, told in a conference that “this partnership means everything for Google.” As Google never had the best e-commerce stats.
“Its attempts in becoming a shopping platform to invade Amazon has been middling at best,” he said. The truth is we use Google to search for items that we want to purchase, but we don’t buy from Google. Even, not from any Google partnered platform. This what it is all about. Google is attempting to prevent consumers, from dropping its services.
Carmi Levy said that the company is planning to cut Amazon out of the retail sector. Google assures its “end-to-end” dealing either directly with Google or any of its partners.
For now, Amazon is strong on two businesses, he explained. It’s the powerful e-commerce powerhouse, and its search advertising is increasing per minute.
What Google’s Spokes Says?
“If you’re into any retail or online competition”. You either identify the prospective threats that Amazon has to your business. Or you accept the risk of becoming steamrolled by Amazon at a time. If Amazon is left unconfirmed, Google is vulnerable to the e-commerce giant. So, we have left either to lock up such partnerships now or regret it later on.
Neil Shah agreed with the statement of Levy. Shah told in an interview that the timing is correct for Google. As more users continue to purchase online due to the Covid-19 pandemic. Shah is the partner and vice-president of research at Counterpoint Research.
He said Google will now be able to drive its millions of smartphone users to a finer e-commerce experience.
Google requires to add these merchants and businesses to its ecosystem officially. And achieving all of them is not simple in the first attempt. So, “the Shopify partnership is centric and a masterstroke from Google,” he said.
Google and Shopify partnership will benefit mom and dad shops.
This collaboration could let Google make more vertical like Amazon. It focuses on becoming a vested, reliable, and better e-commerce ecosystem, Shah says. Or it can make it horizontal too. Vertical e-commerce is where merchants serve a particular audience and their set of requirements. Whereas, horizontal e-commerce serves numerous audiences.
I believe Google watches a great opportunity in being more horizontal. It is nicely categorized with Shopify and strengthens the merchants with AI and other gears. Gears like marketing and a recommendation engine to strengthen their platforms,” he said. “What it does is generally going after the non-Amazon market and retailers not making anything huge on Amazon.”
In its attempts to fasten its shopping business. Google also removed fees for merchants on its shopping service. Ready added since we eliminated fees, an 80% increment seen in retailers. Ready said that a “huge majority” are small retailers.
Levy stated that appearing on Google is significant for a small retailer. He said that, this partnership level up to those mom-and-pop shops. It is keeping them as a consideration when a user is out searching for a product.
“While Amazon may flatter on the idea”, he said. The average user starts any prospective purchase with a Google search. So, the potential of small retailers would be discoverable via a Google search can easily. It would make the disparity between the ultimate success and failure.
Source: Google’s Partnership with Shopify is a “Masterstroke,” Experts Say
