Luxembourg, August 15, 2014.- Google, Amazon, Alibaba, Rakuten, Instacart, Apple agree on a target. Being world leader in electronic sales. They need hardware, software, human resources and logistics. That is, to deliver any product, anywhere in the world in the shortest possible time.
Google Shopping Express is the latest venture by leadership rival Amazon and other digital platforms. Currently, the first phase takes place in San Francisco, San Jose, Los Angeles and New York, four cities that demonstrate the success or failure of this new service. Experts have valued the movement of Google: “The main objective of the Silicon Valley company is clear: beat Amazon, which today stands as the undisputed king of ecommerce. Furthermore, the fight is not only in e-commerce itself, but the logistics and the ability to provide local services, a discipline in which Amazon is also being pioneered by their successful venture into the provision of local services throughout the United States (plumbers, dog sitters, nannies). Moreover, Google also wants to position itself within the e-commerce food, where Amazon has marveled half the country thanks to its Amazon Fresh service, which provides daily fruit vegetables and meat of all kinds in mere hours. At the moment Google is followed lagging behind, as their food supply only non-perishable products is reduced”.
Digital purchases need ultrafast deliveries
Meanwhile, Chris Cunnane has made this brilliant analysis of Google and Amazon rivalry in Logistics Viewpoints Blog: “There has been a lot of talk lately as it relates to “last mile” deliveries, and how retailers can delight their customers at the actual moment of fulfillment. As more retailers venture into the omni-channel space, last mile has taken on more importance. Two behemoths have taken center stage in the battle for perfecting (or at least improving) the last mile for customers: Amazon and Google. For many people, Amazon is the end-all, be-all for their shopping needs. With nearly 60 (and counting) distribution centers in the United States, Amazon can fulfill orders quickly to nearly every square inch of the country. With Amazon Prime, and its $99 a year price tag, customers can receive these orders in two days, guaranteed. But two day delivery isn’t the only perk of Prime. Amazon Prime customers have access to a growing catalog of e-books, and streaming digital music and video, including a new partnership with HBO. But controlling the last mile is more important than ever. So Amazon is rolling out its own fleet of delivery trucks. These trucks become a true competitor to UPS and FedEx, which will surely miss the Amazon business. For Amazon, it adds control over the last mile, and who is actually delivering the merchandise to customers. It also creates some additional flexibility into delivery timeframes, which can increase customer satisfaction. At the same time, it offers a way to reduce shipping costs, which have been increasingly as a larger percentage of revenue every year since 2009. Enter Google, and its desire to play in the last mile game. Google’s model is different than Amazon. Google does not have distribution centers around the country, nor does it want to. Instead, Google contracts directly with local stores to provide same-day delivery (mostly). The advantage for Google here is that it can keep adding new partners without worrying about inventory carrying costs. As part of Google’s Shopping Express, customers can sign in through their Google account, use their Google Wallet to pay for the purchase, and select a delivery timeframe. Overnight deliveries are offered in select areas where same-day delivery is not offered”.
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