Chief business officer of Google, Omid Kordestani recently at a technology conference declared- “There is going to be a buy button, it is actually imminent.” It is a big push by this search giant which has anchored its claws on colossal number of websites, maps, emails, social media, automobile (Google car) and what not. This step by Google is truly ambitious as it doesn’t want itself to be a stranger in the rich pocket business of future, the E-commerce.
What is this Google’s ‘Buy’ button?
Google’s ‘Buy’ button will be a new improvement which everyone can see it on its Home-page. To be clear, this advance is rolled out only for the mobile interface.
With this buy button, Google wants to make it even easier for people who fancy buying products online right from the 1st page of Google Search. All that one has to do is click on ads of the products that appear on search result and without the need of flying to the 3rd party websites he/she can buy it right from there.
Why led to the development of Google ‘Buy’ button?
There are three solid reasons that can be inferred that led to genesis of Google’s ‘Buy’ button.
Stiff competition from social media:
Facebook and Twitter already has the buy option. Merchants can give ads and buyers can easily buy from these social media websites benefiting everyone in the process.
This makes it imminent for Google to implement in its module as otherwise it might reduce its shine when compared. And why not, when every merchant wants to come online to sell their products Google can prove quite handy in selling of the products.
Amazon search escalation:
Reliable service, flawless shipping and ‘One-click’ ordering technology by Amazon revolutionized the ease at which the products are purchased.
Hence buyers are directly jumping to Amazon website to search the product to buy and not Google. The number of search in Amazon for products is so staggering that it filled Google with jitters.
Also more searches in Amazon meaning trimming down of Googel’s search ads the accounts to its earnings. How can Google withstand such dire stances that can affect company’s income and profits?
Emerge of E-commerce as future business king
Eddie Machaalani & Mitchell Harper, CO-CEOs of BigCommerce, predicts that by 2022 retail shops will be just little more than showrooms. And as per Inc. the e-commerce spending by 2017 is estimated to be about $334.4 billion in US only. Yet only 1 out of 10 purchases in US are done online, put forward by Omid Kordestani.
Graph above by A.T. Kearney and PwC clearly shows the soaring e-commerce market by 2017. Such opportunistic scenario leaves very little scope for Google, which has a sheer resource pedestal, to not plunge in e-commerce. And probably this ‘buy’ button can be the first step of Google in the world of e-commerce world.
Repercussion of Google’s buy button:
Whenever such developments surface in the picture, there are most certain after-effects. These after-effects can be both positive or at the other end be disastrous to a certain section.
Here’s our analysis:
When Kordestani said, the goal of ‘buy’ button is aimed to significantly reduce the ‘frictions’ buyers usually face, he actually means it. In other words moving to various websites to compare prices, troubles of buying and completing process will be a history. Hence it will significantly make the completion of online purchase very easy and effective.
No monopoly of E-commerce:
Buyers will be the real winner of this development by Google as products will be sold at high discount. Reason being there will be much more competition in the e-commerce industry and no single company will have the upper hand.
More sale for merchants:
Google becoming synonymous with search, billions of buyers would love to reduce their overhead of going to any particular site and easily buy products with a single Google search itself. This gives sellers massive potential to promote products on Google and sell.
As the buy option will be seen in the mobile interface only, many customer and merchants who prefers desktop to shop will remain alienated from this opportunity.
Fear of losing personal relationships:
Many traders fear that once Google brings this option to full swing, more and more people will alienate retail shops and this can permanently damage the good relationships the age old bond of customer and retailers.
Pay Google to appear:
For viewers to see the products on top, merchants will have to pay more to Google. It’s one of the best negations one can infer from this big push of planting the buy button by the search giant. How Google will outline this big glitch of putting the load of paying money to show ads, only time will tell.
Threat to small emerging e-commerce businesses:
With this news, many big players are getting run for their money in the e-commerce business already, as a danger of being overshadowed. While large established e-commerce companies are getting nightmares, what about the newbie’s who are trying their heart out to mark their presence? Well if Google doesn’t do something for these small players it will be their end once and for all.
Time being the only witness, according to our analysis – Will this move from Google possess as a great threat to the mid-segmented entrepreneurs? What if they don’t evolve?
We at Digital Solutions are geared up to face this challenge and have the best solutions to combat with enhancement of your website in mobile, budget your pay ads effectively, offer dynamic strategies for your e-business and keep your relationship with your buyers intact.
Thence we have every ingredients and technical marvels to transform these negative effects into positive effects. Contact us for more.
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