Google and Amazon have different business models but they compete frontally when it comes to advertising business, specifically for e-commerce (Shopping ads), which is an important chunk of Google’s core business. In this video we walk you through the most recent developments and data. Get the full Business Model Innovation course here: https://goo.gl/ca5jSU

– Advertising Business Models mini course –

Episode 2 – Google vs Amazon

E commerce sellers and non eCommerce sellers in india get ready for google shopping tab.
Google will soon launch its ‘Shopping’ tab in India. It is a pilot test. The full fledge launch will be before the end of the year.

Google is already in talks with ecommerce players such as Flipkart, Paytm Mall and Snapdeal to take part (except Amazon). Google will tap small and large businesses — from neighbourhood kirana stores to high-end handicraft stores. This service is being provided free of cost.

Google shopping tab as a precursor of it setting up an ecommerce marketplace.It is like how Amazon launched price comparison website Junglee.com before getting into ecommerce full-fledged after they got consumer data.

Reason – DECLINING AD REVENUES
Google’s is said to be losing market share to Amazon on product searches in the US, which results into declining ad revenues. Flipkart and Amazon had reduced their ad spending on Google by as much as 30%.

About Shopping Tab
At present, online shoppers generally go to an ecommerce website directly to search for a particular product.
Bu now, Like ‘News’ or ‘Images’ tabs on Google search page, the ‘Shopping’ tab allows users to find listings of the product they are looking for. Shopping tab can filter the product they are looking for based on price or any other attributes.

Why Google want to get online shopping.
With 80-85 million online shoppers, India is an important market for Google.
Already have experience.
Google currently runs a Shopping tab in over 30 countries.

Google invested in omnichannel fashion commerce company Fynd, which provides an online platform for brands to display their store inventory. Also invested in hyper-local delivery service Dunzo.

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