Google has now started charging its customers for Google Express, which offers its customers shopping delivery on the same day or the next depending on what you prefer. With Google Inc. (NASDAQ:GOOG) Express, the internet giant is entering this extremely competitive domain with its long term partner and advertising customer Amazon.com. For many years now Amazon has been a preferred online platform for purchasing but this fact doesn’t concern Google.
According to Google the field is vast and it is good to give customers a lot of options where shopping is concerned because for Google, better customer experience is way more important than giving the user ten blue links. For Google Express’s success Google has partnered with 35 retailers, including Costco, Walgreens and Staples. These stores contact their local branches who then fulfill the order which users place online. However, the profitability of Google Express would be gauged over time…
Google just doesn’t want to shrink their desktop version of Google Express into a mobile screen; the company has actually spent a lot of time, effort and money on making the experience more suited for those consumers who use their smartphones to shop. It’s not just about converting a search into a sale, which is the entire strategy behind desktop ecommerce, but in today’s world a lot of searches on the mobiles end up in a physical trip to the actual store and this is exactly what Google Express is targeting at.
Google does not believe that usage of Google Express would drop only because it is now a paid service; however Google thinks that members would find the cost benefit analysis of the fee to be of good value to them. Google Shopping and Delivery Business’s Vice President Sameer Samat was asked why aren’t companies lining up to form partnership with Google Express. Samat replied that the main reason is that it is currently the fourth quarter, which is a very tricky time for most businesses that is why they are not rushing to join ventures right away instead they want the growth to be organic. He further said that the company has taken careful steps to ensure that all potential partners will be able to manage the new expansion.
However, Samat certainly did not confirm the rumor that Google has allocated $500 Million to invest in Google Express as the company is taking this project on a step by step methodology. He stressed on the fact that Google makes continuous progress on how its consumers benefit from its search. The latest change which the company has brought to its mobile search is showing bigger images with every detail a customer could possibly be inclined to know.
Since Sameer is also responsible for product search advertising at Google Inc. (NASDAQ:GOOGL) Shopping he has big plans in store for Google Express as they are targeting people who are extremely busy and use their smartphones for saving time in activities like shopping. This mobile friendly new business model would compel them to order online from stores, which would bring Google Express into play.