It is right to say that Amazon is gearing up to challenge Google in the ecommerce sphere and it is likely to win the race soon. A very influential person from the Silicon Valley Mr Bill Gurley, who is often regarded as the technology’s top deal maker in the venture industry, did an intense interview session after which he came up with some starling thoughts regarding the future of Google and Amazon.
According to Gurley, Amazon is really doing some impressive improvements which may affect the future of Google as the main search result provider. Gurley said, “Amazon is doing some aggressive things that are even challenging to Google.”
Gurley’s reversal of funnel concept
In the concept of reversal of funnel by Gurley, the position of Google in the funnel is on the top. A visitor on the web opens Google to search for the information using a keyword and clicks on the sites that comes on the result page. Google’s main source of income comes from the advertisement given by different sites on the result page.
To secure business, companies at the bottom of the funnel has to work a lot to win the hearts of visitors and convince them to shop from their sites. To achieve that, one has to invest time in building an impressive website and SEO.
For a long time this funnel system has been in action, but if we throw some lights in the recent market studies, chances of Amazon leaving behind Google in ecommerce business may not be a surprising fact.
How Amazon may overtake Google?
Amazing delivery system– Amazon has their own logistics system that tends to work with such ease that customers trust them blindly. Features like same day delivery and the least time taken to deliver a product has gained immense popularity among the major portion of the population who likes to shop online.
Immense trust– Other features such as one click and the prime program, inputs trust amongst the buyers who don’t worry about the quality of the product when they are buying from Amazon. Price is also a great factor to attract huge number of customers, and Amazon makes sure they provide the best price and occasional discounts.
Amazon has more than 190 million products to sell, and if a product is not found in the Amazon the person seeks help from Google. This explains the reversal of the funnel concept where people are going to Amazon first, if they don’t find the product there, they turn to Google. Amazon is offering a far more satisfying shopping experience than Google.
Google is also making their own strategies to help maintain their prime position. For example, Gurley said “They got Google Express, which I view as a Quixotic response to this problem. We’re going to make it possible to close the loop on a Google transaction, but it’s not set up in a logistically optimal way,”
To conclude, we can say that there is no perfect model of business which can guarantee to churn out profit year by year. Amazon as a brand is spending millions of dollar to set up their own logistics to reach every corner of the world, and their hard work is showing up quite clearly.