Why Amazon (NASDAQ:AMZN) may be bigger search competition


When it comes to search competition many will think Google (NASDAQ:GOOGL) takes the lead with Microsoft’s (NASDAQ:MSFT) Bing close behind it. However, Eric Schmidt states the start of this week in Berlin that Amazon (NASDAQ:AMZN) is their biggest competition.

He stated that Google (NASDAQ:GOOGL) definitely had much in the way of competition but here are the reasons why he thinks Amazon (NASDAQ:AMZN) may be the biggest threat:

Amazon by far has the best search results:

Schmidt found from Forrester that about one-third of internet users begin their research for purchases on Amazon (NASDAQ:AMZN). This number is much more than twice that of Google (NASDAQ:GOOGL). The traffic on Amazon (NASDAQ:AMZN) due to search is 12.4% with a huge chunk of it coming in from people who type “amazon” into search bars. This amount is below average as in 2011, it was stated by Google that an average website gets 28% traffic from the search option.

People are prone to go to Amazon (NASDAQ:AMZN) before Google (NASDAQ:GOOGL) because they have a better perception in the minds of shoppers. Even though Google (NASDAQ:GOOGL) doesn’t consider other search engines as competition, it should come as no shock that Amazon (NASDAQ:AMZN) has various advantages like reviews and is represented as a price benchmark.

Even shoppers who don’t want to buy anything on Amazon (NASDAQ:AMZN) go to the website just to gain information on potential purchases.

Offers much more than search

This is a list of the different categories that both Google (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) compete in:

  • Advertising: Amazon (NASDAQ:AMZN) entered this new market in the summer and uses its browsing history as well as user purchasers in order to target its ads to potential buyers. This approach definitely competes with Google’s (NASDAQ:GOOGL) network which in turn uses cookies with other data that the company collects in order to target its ads. Both of them have their pros and cons in their respective approaches.
  • Digital Media:  It’s a plain fact that Amazon (NASDAQ:AMZN) is the second biggest digital music gallery and the biggest ebook seller in the world. Not only does it stream music as well as videos through its Amazon Prim but also sells them. Google (NASDAQ:GOOGL) on the other hand operates the biggest music store as well as short-form video service on YouTube.
  • Consumer Electronics: Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOGL) offer tablets that are low priced with both going into the smartphone business as well.
  • Speedy Delivery: Amazon (NASDAQ:AMZN) has its Prime membership costing $99 per year with two day shipping for plenty of its items while Google (NASDAQ:GOOGL) works with retailers on same day shipping through Googe Express.

Google (NASDAQ:GOOGL) should consider Amazon’s (NASDAQ:AMZN) market share an opportunity as the bigger the opportunity, the lesser share Amazon (NASDAQ:AMZN) has thus more potential for Google (NASDAQ:GOOGL) in the overall market. With Amazon’s (NASDAQ:AMZN) loyal customer pool amounting to an estimate of 50 million in Prime subscribers, it may be difficult for Google (NASDAQ:GOOGL) to steal them.