It has been a race to the finish line for a number of big name web-based retailers in regards to same-day delivery. In the recent two years alone, Amazon has made great strides with the service, from having strategic distribution centers to now unleashing its' plan for same-day delivery throughout the US. Although Amazon didn't let the cat out of the bag too soon, most experts knew it was coming. Amazon has been launching expansion after expansion, pursuing to gain huge segments of the retail market. However, another e-retailer stepped into the game on last year and has not looked back. Google has been aggressively expanding its' service, now called Google Express, and yet expands again to compete.
Fortune Magazine reports that Google has now expanded Google Express into Washington D.C., Boston and Chicago. These are all three major US cities that have all of the demographic factors needed for same-day delivery to thrive. Formally Google Shopping Express, the service involves a partnership with several physical store retailers, including Target, Toys-R-Us, Wal-Green's, Barnes & Nobles, BestBuy, and more. Within the new expansion cities, other merchants join the team. Boston's Stop & Shop, Giant Food in D.C., and Wrigleyville Sports in Chicago, all become the new partners of Google, delivering all types of online items to shoppers.
The items Google Express can deliver to shoppers includes everything, from electronics, flowers, books, toiletries and more. This type of service includes items which are the everyday consumables that customers need, yet may not necessarily have the time to get them within their busy day. Also, Google offers items that shoppers are much apt to use technology more with the added convenience it brings, creating the opportunity to make purchases from everywhere they are. Online retail continues to grow 16% annually, and as the holiday seasons arrives, it is no surprise that Google is establishing same-day delivery for a big return this year.
Google Express works much like Amazon with an attractive membership model base. A membership with Google currently costs only $95 a year or $10 a month. For orders over $15, members have the opportunity for free same-day or overnight delivery on eligible orders and being first in line for delivery availability options. Shoppers also can simply pay as they go for $4.99 per order. For one customer, this may not seem like a lot of revenue, however, when the economies of scale enters the picture, the volume for profit appears to work. With the new additional cities, Google expands its' reach to servicing over 7 million more people, creates the shopper volume the retailer is looking for.
Fortune also quoted Google's executive chairman Eric Schmidt from the Wall Street Journal in an article regarding who the e-retailer is really competing against. “Many people think our main competition is Bing or Yahoo, but, really, our biggest search competitor is Amazon”, stated Schmidt. Google is distancing itself from the brand of only being a search engine, useful for information only. Google Express is heavily involved in the retail industry and it appears with the big investments and innovation, will be here to stay. Amazon is indeed not only Google's competitor, but probably every retailer's opponent as well.
As the race continues, more and more physical store retailers that do business online are taking note of Google's model to increase sales. Many are partnering with a same-day courier like A-1 Express to pick up items from their stores and deliver to their customers wherever they are. The Boston courier has a national footprint that can help any web-based or brick-and-mortar seller advance within the e-commerce world.
Reference: 10.14.14, Fortune, Lauren Lorenzetti, Google Express expands its same-day delivery reach