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WSJ: Google testing Buy button, mulling Amazon Prime-like program

Dec. 15, 2014 7:02 PM ETAlphabet Inc. (GOOG) StockGOOG, AMZN, GOOGLBy: Eric Jhonsa, SA News Editor22 Comments
  • The WSJ reports Google (NASDAQ:GOOG) has "approached retailers about creating a 'buy' button" for Google Shopping that would work much like Amazon's (NASDAQ:AMZN) one-click ordering feature.
  • Google is also said to be "considering a [Google Shopping] marketing program that would allow merchants to promote two-day shipping." The program would be similar to one from ShopRunner that provides unlimited two-day shipping from various retailers for $79/year. Amazon Prime, of course, provides unlimited two-day shipping (among other things) for $99/year.
  • Sources caution several retailers approached by Google were cool to the "Buy" button concept, fearing more price competition and a loss of control over the shopper experience. Google could profit from the button either by charging a transaction fee, or by simply seeing higher conversions when it's used (thus raising ad prices). The company might also get better conversion data than it's currently receiving.
  • As ChannelAdvisor's data drives home, Google Shopping ads (deeply integrated with Google search) have been seeing rapid growth; Wal-Mart, Best Buy, eBay, and Sears are among their many buyers. Amazon, though spending plenty on standard Google search ads, is a high-profile holdout.
  • Google officially launched its $95/year Shopping Express same-day/next-day delivery service (competes against Prime's same-day services) in October. Around the same time, Eric Schmidt called Amazon Google's biggest search rival, due to the fact Amazon shoppers are more likely to bypass Google search.

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