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August 25, 2017

Tech News:The E-Commerce Collaboration Between Google and Walmart

The tech giant Google has teamed up with retail colossus Walmart to take on their mutual e-commerce rival Amazon.

From late September this year, customers will be facilitated to purchase Walmart products through Google Express. Google Express is an online marketplace from where customers will be able to purchase and set up their deliveries from stores like Target and Walgreens. Amazon’s Echo is currently the market leader for voice-controlled devices. Google Assistant and Google Home Smart Speaker will compete against Echo to provide Walmart items. Google will enable Walmart shoppers to link their accounts to it and get recommendations personally.

With a combined market capitalization of approximately $894, experts term this collaboration as a symbiotic relationship mutually beneficial for both the parties. Walmart has raised its e-commerce profile while it continues to battle Amazon in both digital and conventional retail domains. On the other hand, for Google, Google Express facilitates a greater selection of items. Google Home smart speaker and the digital assistant impart a more robust shopping platform.

To better compete with Amazon Prime, Google has also announced some changes to Google Express. The annual membership for Amazon Prime is $99, whereas Google currently charges $95 for an annual membership. Also, Google Express is about to offer free delivery within one to three days if the order meets the minimum threshold of the store. To exemplify this, Walmart had recently introduced free, two-day shipping on orders that exceeded $35. This means any Walmart-Google Express order exceeding $35 would be shipped for free.

The competition between Walmart and Amazon will be engrossing. While Amazon is eagerly opening new retail stores, Walmart is making large acquisitions and investments in the new e-commerce technology. This is validated by the fact that in recent years, the retail giant invested billions to acquire retailers like Jet.com and Bonobos.

From e-commerce to the cloud, and from digital assistants to smart speakers, Google and Amazon compete in a variety of industries. It will be difficult to predict what will be the evident outcome of this contention, but one thing is for sure: consumer enterprises and their customers would avail opportunities by leaps and bounds consequently improving their e-commerce experience.

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