Google Introducing Buy Button To Counter Amazon's Threat

  • The e-commerce market is heating up with Facebook and Twitter earlier and now Google announcing a buy button.
  • Google and Amazon have recently been challenging each other with Amazon launching its own ad network even as Google has made several moves into e-commerce.
  • The successful introduction of a buy button will hold various positives for Google and could also provide the online search giant with additional monetization opportunities.

The online e-commerce market has seen major moves being made as competition in the space is on a rise. The rising competition has blurred the lines between internet companies and online retailers, as Google (GOOGL), Amazon (AMZN), Facebook (FB) and Twitter (TWTR) are all fighting for a share of the e-commerce pie. Google, last year, announced shopping express to take on Amazon’s same day delivery service Amazon Prime. In return, Amazon launched an advertising platform of its own. The high potential of the e-commerce market saw Facebook and Twitter join the E-commerce race with their buy buttons. Following them, search giant Google recently announced its version of a buy button. Wall Street Journal reports that Google is testing a buy button. The post also points to a Forrester report which claims that 30% of online shopping research now starts on while 11% originates on Google. This is a huge reversal from 2009, when 24% searches started on search engines while Amazon accounted for 18%. The buy button will be Google’s answer to the shopping search traffic it is losing to Amazon.

Google Buy Button will take on Amazon’s one click shopping

Google’s buy button will be a direct answer to Amazon’s one-click feature. Currently, Google shopping refers shoppers to merchant websites, which then require shoppers to fill in credit card details to complete a shopping. This is a major hurdle Google’s buy button aims to overhaul. If implemented, the buy button will enable shoppers to complete their shopping within Google shopping. Google will collect and store the payment related data, which will be shared with merchants once a shopper hits the buy button. The hassle of entering the credit card transactions will no longer last as the entire process from product search to actual sale will be handled on the Google shopping platform.

Positives for Google

Though the initial response has been lukewarm, the product could be a hit with retailers who are losing relevance due to the rapid growth of e-commerce. The retailers will be more aligned to sign up for Google shopping ads as Google doesn’t compete with retailers and will complement them to a certain degree. The buy button will also, almost certainly improve the conversion rate as payments will be done with one click within Google shopping, overcoming the hurdle of entering credit card details, which is a major obstacle in the process of online purchases. The processing of entire transactions within the Google shopping service will also provide Google with better conversion and shopping data as it will have entire data from customer acquisition through purchase. Though it isn’t clear as to How Google will monetize its buy button, the various options could include Google charging a transaction fee, or benefitting from higher listing prices due to increased conversion rates.


Google’s buy button will be a direct competitor to Amazon’s one click feature. The major benefits for Google will be in the form of higher conversion rates and also improved shopping data. The launch could also be a step in drawing back online shoppers who are today flocking to Amazon to research their online purchases.

Virendra Singh Chauhan Virendra Singh Chauhan   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

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Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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