Google Inc (GOOGL)’s Expanded “Google Express” Holiday Deliveries Threatens Amazon.com, Inc. (AMZN)

Google (GOOG)

Google Inc (NASDAQ:GOOGL) has expanded the coverage of Google Express, the same-day holiday delivery service that the search giant has started initially last year, by including additional U.S. cities as well as adding more merchants selling their goods through the service. The company reports that Google Express has served consumers with 50 percent more in order placement for toys as well as a 30 percent increase in books purchase, two weeks after the annual Thanksgiving holiday, which also happens to be the peak season for year-end shopping.

Google Inc (NASDAQ:GOOGL) initially served San Francisco/Northern California, New York and Los Angeles with the free test run of Google Express last year, and early in October this year, the company added the cities of Chicago, Boston, and Washington to the service. It is now also targeting a larger number of digital shoppers by adding more merchants. The current list of sellers include 1-800-Flowers.Com Inc (NASDAQ:FLWS), Barnes & Noble, Inc. (NYSE:BKS), Costco Wholesale Corporation (NASDAQ:COST), Kohl’s Corporation (NYSE:KSS), PetSmart, Inc. (NASDAQ:PETM), Staples, Inc. (NASDAQ:SPLS), Target Corporation (NYSE:TGT), Toys R Us, and Walgreen Company (NYSE:WAG), among others.

Google (GOOG)Because consumers usually go directly to Amazon when doing online shopping,  Google’s opportunity to make money out of ads displayed along search results was threatened, but Google Express seem to be the solution to that particular trouble. The service promises same-day delivery for all orders for a cost of $4.99 for non-members, or for a flat subscription fee of $10 per month or a discounted cost of $95 annually.

Keeping up on consumers’ increased expectations and demands for faster and better service, Google Inc (NASDAQ:GOOGL) has also made Google Express with terms that are more buyer friendly compared to Amazon’s current set-ups. For instance, while Amazon Prime offers same or 2-day delivery at a cost of $5.99, Google Express offers same day delivery for free under a membership subscription or at $4.99 charge for non-members. Bulk shopping is also more convenient with same delivery as against Amazon’s system of different deliveries for different items. Partnerships with local retailers also targets loyal local customers.

Google Express partners such as Guitar Center, Inc. also benefit from the search giant’s  technology that makes sales and deliveries not only faster but more efficient. Jeff Wisot, Guitar Center’s vice president for enterprise digital marketing, notes that while his company is motivated to offer consumers several options, it would be prohibitive to do it internally, according to a report by Bloomberg. Brian Elliott, Google Inc (NASDAQ:GOOGL)’s head of partnership for shopping, said that it is Google’s aim to drive more sales to retailers’ existing customers.

This article has been written by Nonito Guntan.

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