Google Shopping challenges Amazon dominance on price
Ottawa, Canada – November 2, 2016 – 360pi today announced research revealing that Google Shopping offered a lower price than Amazon on a sample of Amazon’s own Best Sellers – 59% of the time relative to Amazon proper and 58% relative to Amazon marketplace sellers. In fact, Amazon was found to out-price Google Shopping only 25% of the time on the sampled assortment. This is based on 360pi’s price comparison of 750 Amazon self-reported Best Seller products to the same items advertised on Google Shopping across numerous categories, as sampled October 13, 2016*.
Marketplaces are the next retail battleground. Google Shopping is in effect one big marketplace and 96.5% of Amazon’s assortment is offered by their marketplace sellers. The size and breadth of Amazon’s marketplace community is arguably one of the giant’s biggest competitive weapons and with 84% of shoppers anticipated to start their shopping on Amazon this holiday, the window for other retailers to catch up is closing fast. Walmart knows this and just spent $3.3 billion US to acquire Jet.com, largely for its marketplace. And, it would seem with Google Shopping’s price aggressive position against Amazon’s own Best Sellers that Google is staking its own claim for retail dominance.
“When someone wants to research something they start on Google, when they want to buy something they start on Amazon. Google knows this and needs Google Shopping to succeed – as much from an opportunity as a threat perspective,” said Jenn Markey, VP Marketing, 360pi. “With endless opportunities for product placement in its core search business, Google is upping the ante with aggressive pricing on Google Shopping and hoping shoppers take notice.”
* Every effort was made to replicate the same shopping experience on Google Shopping as on Amazon.com. Prices reflect the lowest seller available at time of capture.
360pi derives profitable insights from product and pricing big data to help leading omnichannel retailers, etailers, and brand manufacturers compete and win with shoppers. 360pi’s customer base accounts for over $US200 billion in annual product sales and includes Ace Hardware, Build.com, and Overstock.com, along with several Fortune 500 consumer products companies. With the majority of in-store purchases being influenced online, 360pi helps retailers and brands successfully navigate the multi-channel landscape with real-time insight into who is selling what, where, when, why and for how much. Ultimately, 360pi customers make smarter decisions faster to drive increased revenues and margins across all channels.
Ketner Group PR + Marketing (for 360pi)
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