Amazon VS Google business model
Google vs. Amazon In The Battle For The End User
Google is increasingly losing customers to Amazon; Amazon has repositioned itself as the leading mediator platform for sales of goods and services. In the battle for last mile delivery, user profiles and preferences are shifting to the core of future ecommerce business models.
Google’s acquisition of the Canadian start-up BufferBox™ has brought excitement to the analogue community of parcel distribution services.
Few believed that a digital multinational such as Google would be interested in a start-up calling itself a “parcel pick-up kiosk operator”.
Ecommerce business model makes takeover strategy clear
Amazon has understood how to enhance and develop its position as a mediator. Google’s own data shows that a decreasing number of users are using its own platform to search for goods and services; instead they search directly at Amazon.
Google is losing out in its area of core competence – optimized search. Meanwhile Amazon is expanding its own ecommerce business model to include the search for goods and services available on its own sites.
Consumer data remains with Amazon
Amazon has little or no interest in selling its user data - a core asset - to third parties for marketing purposes.
On the contrary; Amazon uses this data - in most cases with the explicit knowledge and consent of the user - to target them with new offers.
Amazon’s ability to predict interests and preferences relating to the goods and services it offers is a growing part of its ecommerce business model - placing it in direct competition with Google.
Google’s strategy behind the purchase of Buffer-Box™ now becomes clear: it is a means of retaining access to the profiles of end customers whose stated delivery preference (on platforms including Amazon) is their local Buffer-Box™ station.
Other factors are also gaining importance.
Amazon's ecommerce business model includes pricing according to preferences & customer profiles, end-user delivery preferences, last mile, national, regional and international (including different tariffs for delivery, landed costs – such as tax and customs fees) delivery costs, and payment options (paypal, Credit Cards and (remittance-like) escrow services.