Forget Apple, Forget Facebook: Here's The One Company That Actually Terrifies Google

[LoudRam]

Forget Apple, Forget Facebook: Here's The One Company That Actually Terrifies Google Execs - Yahoo! Finance

It's very easy to get caught up in the Android versus iPhone duel and Google's recruiting battles with its newly-public Silicon Valley neighbor, Facebook.
But neither one of those companies worry Google executives as much as another that is actively taking money out of their pockets.
This company is from Washington, but no, it's not Microsoft.
Google's real rival, and real competition to watch over the next few years is Amazon.
Google is a search company, but the searches that it actually makes money from are the searches people do before they are about to buy something online. These commercial searches make up about 20 percent of total Google searches. Those searches are where the ads are.
What Googlers worry about in private is a growing trend among consumers to skip Google altogether, and to just go ahead and search for the product they would like to buy on Amazon.com, or, on mobile in an Amazon app.
There's data to prove this trend is real. According to ComScore, Amazon search queries are up 73 percent in the last year. But it makes intuitive sense doesn't it?
Why go through these steps …

• Google search "rubber galoshes,"
• Analyze some text links,
• Click on one to go to a product page on some e-commerce store,
• Click to add the item to your cart,
• Input your credit card,
• Input your address,

… when you can just …

• Search amazon for "rubber galoshes,"
• Click one button to buy the product with your usual credit card and have it shipped to your normal address.

On mobile, where Amazon has its own app and Google is just a search bar for a smaller-screened browser, the equation tips further in Amazon's balance.
The scenario gets even scarier for Google if Kindle phones and Kindle tablets gain ubiquity.
If you have a Kindle phone, which comes with free movies and books because you have an Amazon Prime account, which alsogives you free shipping, why in the WORLD would you ever search to buy something through anything but Amazon?
You wouldn't.
That's why Amazon is practically giving its hardware away.
It's also why Amazon scares Google more than anything Facebook or Apple are up to.

[MissionImprobable]

I suppose it's possible and a reason for Google to keep their Kindle-destroying Nexus at $199.

[jroc]

It is odd they consider Amazon a threat to Google when Google has their hands in mobile OS's, browsers, ads, maps, set top cable boxes....hardware?

I use Amazon alot, but I dont think they are a threat. I also shop at Newegg, custom built PC sites, Ebay, Gamestop, etc. Amazon isnt the only game in town for online shopping. I am an Amazon Prime member too, but I do use other sites for shopping.

[TisMyDroid]

I think I have to ditto that. When I shop for pretty much anything online, I first look to see what price I can get the item thru Amazon, then eBay, then I do my google search to see if I can find it cheaper. Probably 50% of the time or more, I can find it cheaper than Amazon. I think with today's economy, people are looking for the best deal on everything and although Amazon would like to be the one stop shop for everything, people will still comparison shop for the best deal, imho!

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[MissionImprobable]

I think I have to ditto that. When I shop for pretty much anything online, I first look to see what price I can get the item thru Amazon, then eBay, then I do my google search to see if I can find it cheaper. Probably 50% of the time or more, I can find it cheaper than Amazon. I think with today's economy, people are looking for the best deal on everything and although Amazon would like to be the one stop shop for everything, people will still comparison shop for the best deal, imho!

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Why don't you just use Google shopping from the get go? It will show you all the prices for the most part and save you a step.

[TisMyDroid]

Because Amazon is my reference point and will give me several examples and prices of the same item... I know exactly the price I'm comparing to. Google might give me only one, maybe two examples from Amazon. It is a process that works great for me in trying to find the best price.

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[brad92]

If people are like me and my family, Google better watch out for eBay.

[jstafford1]

Google will really lose out if/when Amazon can deliver on their same day delivery that they say is coming. That plus adding grocery items will make doing a google search less needed. Add to this the Amazon Prime with free shipping and other free perks, yes Google needs to watch out. These click through ads are 20% of their revenue.
The funny thing is, Amazon is using Googles Android OS to make using their services easier. Get a Kindle, and/or a new Kindle phone and you're hooked into the Amazon buying experience. And both those devices will be running versions of Android.

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