Google is expected to conduct over two trillion organic searches this year alone, making it the number one go-to for online searches. And while that number may sound colossal, 84% of online shoppers will negate Google’s far reach and head to Amazon when bargain hunting for lower prices instead. What may seem like a cut and dry situation, going to Google for searches and Amazon for shopping, isn’t exactly so simple, according to a new study by analytics firm 360pi.
The research found that of Amazon’s 750 reported best-selling products, Google Shopping actually offers cheaper prices on 59% of those products. Conversely, the numbers show that Amazon is the price leader only 25% of the time.
“When someone wants to research something they start on Google, when they want to buy something they start on Amazon. Google knows this and needs Google Shopping to succeed – as much from an opportunity as a threat perspective,” said Jenn Markey, VP Marketing, 360pi. “With endless opportunities for product placement in its core search business, Google is upping the ante with aggressive pricing on Google Shopping and hoping shoppers take notice.”
Google Shopping basically functions as a marketplace and the news comes at a time when marketplace competition has emerged as e-commerce’s biggest battleground. Big Box retailers have launched their own versions, like Walmart’s $3.3 billion dollar acquisition of Jet.com, and Alibaba’s online bazaar Taobao remains its most profitable department. Both, along with several others, are looking to challenge Amazon’s dominance.
As it stands, 96.5% of Amazon’s assortment is offered by its marketplace sellers and 84% of shoppers anticipated to start their shopping on Amazon this holiday.
— Christine Galasso