Wednesday, April 3, 2013

GOOG: Google Shopping Express: Flawed Concept For Google And Retailers

Google Shopping Express: Flawed Concept For Google And Retailers
by Money Investor

This past week, the latest Google (GOOG) experiment entered pilot mode. Google began seeking out testers in the San Francisco Bay area for a service called Google Shopping Express. The service advertises unlimited same-day delivery. Conquering same day delivery now appears to be the holy grail in the quest to fight off the evil Amazon (AMZN) empire. The irony is that Amazon already offers same-day delivery in at least 10 major U.S. cities. The service proposed by Google is slightly different, but the point is still the same. Google and their retail partners are playing catch-up to Amazon in attempting to enter this field. The service itself offers a number of questions. Is this an offensive of defensive move by Google? Does it actually benefit the retailers who partner with Google? Finally, from an investment standpoint, can Google actually make money on this service? After answering these questions, you should begin to realize why I believe this service is flawed for all parties involved, except possibly the consumer. read more »

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