Google Inc. (NASDAQ:GOOGL) is aggressively pushing for market share in the online retail space as it seeks to gather more data on consumer’s shopping behavior, according to Susquehanna analyst Brian Nowak. During an interview on CNBC, Nowak pointed out that Google has already expanded Google Express offerings, partnering with 30 different retailers in ten different cities.
Google express is basically a same-day delivery system where Google will be competing against Amazon.com, Inc. (NASDAQ:AMZN) in shipping goods, faster and cheaper straight from retailers this holiday season.
“It is essentially a same day e-commerce offering where you order items to Google Shopping Express they send carriers to Target to whole food to Costco and deliver to you on same day, “said Mr. Nowak.
Google is looking to take online shopping to another new level by essentially allowing consumers to buy goods from their favorites stores and have them delivered on the same day without any hustle. The giant search engine company charges $95 a year for the service or $10 per month; seen as one of the most highly subsidized services in the same day delivery space.
Nowak notes that prices on Google Inc. (NASDAQ:GOOGL) shopping express are a little bit higher by 15% than what consumers would get if they walked into retail stores and made purchases. The price difference is, on the other hand, offset by a cheaper delivery system allowing Google to make a little bit of money from the entire process. The end game of the entire process is google attaining specific data that it can use for other purposes especially for marketing campaigns.
“Google wants data about consumer shopping behavior where Google Inc. (NASDAQ:GOOGL) wants to know the exact pampers that you buy. Because then they can then estimate this pampers usually have about a 30 day lifespan and on day 28 they can serve you an ad for those exact pampers. There is a much higher conversion in value for that advertising, “said Mr. Nowak.
Nowak expects all the other big tech companies led by Amazon.com, Inc. (NASDAQ:AMZN) to also make a push for consumer’s data, which could be used for advertising purposes in the future.
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