December 4, 2022

Google Aims to Be the Anti-Amazon of E-Commerce. It Has a Long Way to Go.

But since 2002, when it started a price comparison site called Froogle, a confusing play on the word “frugal” that required a rebranding five years later, Google has struggled to chart a cohesive vision for its shopping experience.

It tried to challenge Amazon directly by piloting its own same-day delivery service, but it shuttered the project as costs ballooned. It tried to forge partnerships with traditional retail giants, only to see the alliances wilt from a lack of sales. It built its own marketplace to make it easier for shoppers to buy the things they find on Google, but was not able to break consumers from their Amazon habit.

Last year, Google brought in Bill Ready, a former chief operating officer at PayPal, to fill a new senior position and spearhead an overhaul of its shopping strategy.

Around the time of his hiring, Sundar Pichai, Google’s chief executive, warned senior executives that the new approach could mean a short-term crimp in advertising revenue, according to two people familiar with the conversations, who requested anonymity because they were not allowed to discuss them publicly. He asked teams to support the e-commerce push because it was a company priority.

When the pandemic spurred huge demand for online shopping, Google eliminated fees, allowing retailers to list products for free and walking back a 2012 decision to allow only advertisers to display goods on its shopping site.

Three months after hiring Mr. Ready, Google said the free listings would show up on its main search results. Then Google said customers could buy products directly from merchants on Google with no commissions. It also said Google would open its platform to third parties like Shopify and PayPal so that sellers could continue to use their existing tools to manage inventory and orders and processing payments.

Article source: https://www.nytimes.com/2021/03/27/technology/google-shopping-amazon.html

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