Merchant Tips: How Google Express Can Make You Rich
They’ve been quiet about it, but Google has unveiled a new service that will not only hurt Amazon, but can also make a lot of savvy eCommerce professionals very rich.
The product is Google Express, and it’s already available in a few major metropolitan areas around the country. A lot of big box retailers have already signed up, like Target, PetSmart, Barnes & Noble, Walgreens, and Staples, but small retailers are also welcome to sign up. This is where niche players can rapidly expand their customer base and drive revenue.
The program officially launched a year ago, but expanded beyond San Francisco earlier this year. Google has expanded a fleet of vehicles, which can deliver goods for a $5 fee. Payments are made by Google Wallet, and retailers are paid directly by Google.
Retailers should rejoice, because Google’s expansion into the same-day delivery space means there is growing competition in the bridge between e-commerce, local commerce, and delivery services. This should mean a few things:
Amazon’s stranglehold on eCommerce is threatened
With Google Express, retailers can choose to sell on more than one platform, and they can optimize prices and sales strategies to maximize profits, instead of depending on Amazon as their main source of customers.
A new funnel to obtain loyal customers
This is particularly good for niche retailers. Google Express now offers you a chance to market same-day delivery to local customers who want what you are selling right now. Most likely, these impatient consumers are interested in your products and many will want to maintain a relationship with you. Google Express isn’t just about driving sales; it’s about making more engaged customers aware that you exist.
Google isn’t in the eCommerce business
With Amazon, affiliate retailers are betting against the house. Amazon sells stuff, and they always will. Considering their size and their margins are razor thin (or negative, as the case has been lately), competing with Amazon has been impossible for many small retailers. With Google, you aren’t in competition with the platform.
Google Express is essentially a low cost outsourced delivery and eCommerce infrastructure
Local businesses can use Google Express to scale their operations at minimal cost, and cut down on fixed capital expenses at the same time. Thus the service doesn’t just drive sales—it can raise margins, too.
If consumers embrace Google Express, it’s certain that retailers will follow. Getting away from Amazon is every retailer’s dream. Now Google is giving another chance to do just that. The early adopters will find it easy to capture the attention of highly engaged and enthusiastic consumers. This will drive local businesses’ revenues and, yes, help make them rich.