Google as it grows big and spreads its powerful arms in different sectors of the technology, it is growing many new rivals in the technology industry. Google is fighting war with many different turfs with other technology giants like Apple, Microsoft & Facebook. A new entry to this list in the new year 2013 is Amazon.
Suddenly Google and Amazon have become a huge rivals as their business overlap in many sectors of industries which include online ads, retail, tablets and cloud services. Google being the common internet users first choice in search engine has a great advantage and Amazon being the biggest online retailer has also a great advantage over the online buyers.
Google a decade ago started digitizing catalogs and books to sell electronic editions which causing Amazon to follow by launching E-reader, Kindle. Amazon attacked Google when they started Amazon Ads which now expanded to other website owners. Eventhough Google had huge databases and great algorithms to support it, Amazon came up with even better idea by checking the users purchase history the ads were displayed on the website. Amazon knows what you bought and what you are now in the process of buying.
Using the “DPS” technology, with potential patnership with Xaxis, the company can sell targeted advertisement for products it may not be actually selling on its website. The technique has led Amazon to triple their ad impressions over last year. 30 percent of product search is now done on Amazon compared to 13 percent done on Google.
In retaliation Google responded to this by opening Google Shopping, an updated product search service that charged retailers and online sellers a fee to be listed in their search results.
Amazon’s Kindle Fire tablets used Android OS which could have been the compromising point for the two giants but Amazon created a modified version of Android which cut out the Play Store of Google.
Google acquired BufferBox to compete with Amazon in delivering products. They currently offer “same day” delivery system in San Francisco. But Amazon has some of the best customer service online that is hard to match since Google has no inventory.
To solve this Google launched a merchant certification service that will ship products quickly and backs them with upto $ 1,000 in “purchase protection.” Google has no plans to open a online or standing retail store but if it wins the delivery battle and remains the crown king of search engine business, there is no doubt that Amazon would lose eventually.