Retailers join Google search program to fend off Amazon

Retailers join Google search program to fend off Amazon

Retailers join Google search program to fend off Amazon

The search engine giant appears to be teaming up with Walmart, Home Depot, Target, Costco and Ulta for a new project, Reuters reports. Retailers will only pay Google when sales are made. When a consumer asks "Where can I buy?" one of these products, they'll see the usual listings - including Amazon. Voice ordering has drastically risen and retailers have seen order sizes increase by almost 30 percent with the help of Google Express shopping cart.

If Google Shopping Actions uses the former, then it would raise concerns about Google's organic search (and the ability of bigger retailers to pay for higher search rankings). According to Google, the number of searches containing the phase "how to buy" grew by a staggering 85 percent in the past two years.

According to Google, retail partners saw the average size of a customer's shopping basket increase by 30 percent after joining the program, and Ulta saw average order values increase 35 percent. This allows customers to shop their site through the Google Express app or by saying things like "buy peanut butter from Walmart", to place a quick voice order with Google Assistant's help. "We see ourselves as part of a solution for retailers to be able to drive better transactions ... and get closer to the consumer". It also depends on whether Shopping Actions can really be a "seamless shopping experience" like retailers and Google are hoping it will be.

By 2022, it is expected that over half of all United States households will have either an Amazon Alexa, Google Home, or other smart voice device.

Smart voice devices like Amazon Echo and Google Home will be installed in 55 percent of USA households by 2022, according to Juniper Research.

Google Inc. aims to challenge Amazon.com Inc.'s dominance of the e-commerce market by making it easier for traditional retailers to put their products in front of users. Some of these were detailed in the company's official announcement of Shopping Actions, as the program is called.

Target shoppers "love the ease and convenience of making their Target run without lifting a finger by using a voice interface", Chief Information and Digital Officer Mike McNamara said.

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