Google Intends to Take on Amazon’s Prime Service

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Google Inc. (NASDAQ:GOOG) The Internets premier search engine is intending to venture into retail. Google Inc is currently in talks with several large retailers including Macy’s and Gap Inc. to provide a same day shipping service similar to Amazon.com’s (NASDAQ:AMZN) Prime service.

This move comes as Google has taken notice of Amazon.com’s Prime service which offers free two-day shipping for an annual $79 fee. The service has become increasingly popular amongst online shoppers looking to save on shipping. Google which gets approximately 40% of its annual revenue from a plethora of retail sources is looking to solidify its market share amid Amazon.com’s stronghold over online retail shopping.

While shoppers know that Google is the dominant force for searches to buy products online many feel this is the next logical step. Eric Best, CEO of the e-commerce firm Merchant, stated “Handling the next steps, such as purchasing and getting items delivered, makes sense”. He went on to say “Ensuring third-party partners perform to high service levels will be the biggest execution risk. Consumers will need to have a similar experience to what they already get with Amazon.”

Google is not looking to maintain the inventory or chain-of-warehouses like Amazon, but will use third-party logistics companies to handle packaging, handling, and shipping of these items.

About Google Inc.
Google Inc. maintains an index of Web sites and other online content for users, advertisers, and Google network members and other content providers. It offers AdWords, an auction based advertising program; AdSense program, which enables Web sites that are part of the Google Network to deliver ads from its AdWords advertisers.