US retailers adopt the strategy of ‘enemy of my enemy is my friend’.
New York: Alphabet Inc’s Google routinely fields product queries from millions of shoppers. Now it wants to take a cut of their purchases, too.
The technology giant is teaming up with retailers including Target Corp, Walmart Inc, Home Depot Inc, Costco Wholesale Corp and Ulta Beauty Inc.
Under a new program, retailers can list their products on Google Search, as well as on the Google Express shopping service, and Google Assistant on mobile phones and voice devices.
In exchange for Google listings and linking to retailer loyalty programs, the retailers pay Google a piece of each purchase, which is different from payments that retailers make to place ads on Google platforms.
Google’s pitch to retailers is a better chance to influence shoppers’ purchasing decisions, a move that is likely to help them compete with Amazon Inc. Google hopes the program helps retailers capture more purchases on desktop, cell phones and smart home devices with voice search – the next frontier for e-commerce.
The previously unreported initiative sprang from Google’s observation that tens of millions of consumers were sending image searches of products, asking “Where can I buy this?” “Where can I find it?” “How can I buy it?” “How do I transact?” Daniel Alegre, Google’s president for retail and shopping, told Reuters exclusively.
Over the past two years, mobile searches asking where to buy products soared by 85 per cent, Mr Alegre said.
But the current default choice for many consumers is a Google search that ends with an Amazon purchase, analysts said.
The program, Shopping Actions, will be available in the US to retailers of all sizes and could help retail chains keep those customers. “We have taken a fundamentally different approach from the likes of Amazon because we see ourselves as an enabler of retail,” Mr Alegre said.
“We see ourselves as part of a solution for retailers to be able to drive better transactions ... and get closer to the consumer.”
For consumers faced with a surfeit of choices, the idea is to make online buying easier by giving them a single shopping cart and instant checkout – a core feature of Amazon’s retail dominance.
Retail chains can also offer products through the Google Home voice shopping device, holding on to those who may be headed to Amazon for better deals and giving them personalised recommendations based on previous purchase history.
For example, a shopper looking for sneakers on Google on his phone can see a retailer’s listing and add that to his Google Express cart.
Later, the customer can stand in the kitchen, and use the Google Home voice device to add paper towels to the same cart and buy everything at once.
Retail partners saw the average size of a customer’s shopping basket increase by 30 per cent, he said, pointing to early results from the program.
The retailers are also eager to get in on the rapidly growing voice shopping market dominated by Amazon’s popular Echo home device, analysts and consultants said.