Tuesday, May 19, 2015
Google's buy button would facilitate impulse purchases during routine product searches, sources say. Similar to Amazon's one-click payment method, buy buttons would transport consumers to an e-commerce site where their personal information and buying preferences would be stored so they could complete purchases. Buy buttons would have the potential to prolong average visit times on the Google site, as opposed to current Google searches that link to websites outside Google's footprint. The Amazon Marketplace has successfully leveraged this model, hosting an array of third-party sellers that transact directly with Amazon customers who buy their goods and services without ever leaving Amazon.com.
Industry analysts have anticipated Google's response to increasing competition from Amazon, which has gained a reputation as a search engine as well as an online marketplace. A recent study by Forrester Research found that in the third quarter of 2014, 39 percent of U.S. shoppers initiated online searches on Amazon, compared with only 11 percent who began product searches on Google. These indicators demonstrate the value of aggregated search and e-commerce functions.
In the first phase of Google's pilot, buy buttons will reportedly only be featured in mobile searches conducted on smartphones and tablets, appearing only on sponsored products endorsed and paid for by leading retailers.
While there has been widespread speculation about buy buttons' overall impact on e-commerce, a Google spokeswoman said that the company had nothing to announce. "We continuously explore and test many ideas for improving the experience for consumers," she said.
Payments analysts have long predicted that widespread popularity of social media sites would inevitably lead to new forms of social commerce. In July 2014, Facebook, Twitter and Pinterest all disclosed plans to add buy buttons to their social media sites, prompting speculation that the monetization of social media was finally at hand. Facebook shared that it was testing a buy button for news feeds and product pages. "With this feature, people on desktop or mobile can click the "Buy" call-to-action button on ads and Page posts to purchase a product directly from a business, without leaving Facebook," the company stated. Facebook further noted that "none of the credit or debit card information" used in its e-commerce transactions would be shared with third parties, and consumers would have an option of storing their payment cards on Facebook. Twitter's "Buy Now" button, which first appeared on July 1, 2014, on a single retail site, went viral as followers around the world re-tweeted images of the button embedded next to different retail products. The event was a bit of a dust-up, as the button itself was inactive and part of a limited beta test. However, the excitement created by its appearance was indicative of Twitter's broad e-commerce potential.
Pinterest is also experimenting with a buy button that would enable visitors to click and buy "pinned" products directly on the site. The button follows the successful release of the "Pin It" button, which enables single click pinning to Pinterest of products of interest users find on other websites.
While speculation grows regarding Google's buy button plans, there are no indications that Google will do anything more than expedite and streamline mobile commerce, prolonging the average visits of millions of shoppers who access its site from mobile phone browsers and Android apps. Its plan to improve efficiencies of Internet shopping is widely believed to be a direct challenge to Amazon's search and online advertising prowess.
Additionally, Google is experimenting with membership programs that facilitate a range of VIP services, much like the popular Amazon Prime program that has gained approximately 40 million subscribers. Google Express, launched in 2014, is being tested in major regional markets in the United States, including New York, San Francisco, Washington, D.C., Boston, and Los Angeles. Subscribers who pay a $95 annual membership fee can use the service to order online from participating retailers, including Costco Wholesale Corp., Staples Inc., and Walgreen Corp. for unlimited same-day delivery on orders over $15.
ShopRunner Inc. introduced a similar program with a $79 dollar annual fee that provides members with exclusive discounts and two-day shipping from participating retailers, including such well-known brands as Staples Inc., General Nutrition Centers Inc., Neiman Marcus Group Inc., and American Eagle Outfitters Inc.
Editor's Note:
The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.
Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.
