Global-tech giant Google has finally forayed into the Indian e-commerce space after months of speculation. The firm has launched Google Shopping in India to let customers buy items either through its own website or through a separate tab on Google Search. Google Shopping was launched in 2012 and currently serves people in more than 25 countries throughout the world. With the latest announcement, India will join the list.
It is speculated that Google will give a tough competition to Flipkart and Amazon. However, unlike Amazon and Flipkart, Google Shopping does not fulfil any orders on its own. It displays a list of products from third-party sellers clicking which opens the seller’s website. For example, when someone searches for ‘OnePlus phone’ on Google Shopping, it will list all the sellers selling the smartphone. People can compare and select the best seller. They will be redirected to the seller’s website where they can complete the purchase.
It can be deducted that Flipkart and Amazon won’t get any direct competition from Google Shopping. However, it may affect their business somehow and reduce their direct visits as Google gets billion of product search queries per day and people may start searching on Google to reach Flipkart and Amazon. The US-based firm will establish itself as a channel between sellers and buyers and will thus affect which seller gets how much traffic and therefore, how makes how much money.
Unlike Amazon and Flipkart, Google Shopping does not run on a revenue sharing model. Traditional e-commerce giants charge a fixed percentage of the retail price from the sellers to sell on the platform. On the other hand, Google shopping will introduce ads on the service just like what you see on Google search. Sellers may end up advertising their product listings to generate more sales.
Earlier, the firm has acquired a majority stake in Dunzo to understand the urban consumer market in India. After that, it acquired a stake in Fynd to understand the behaviour of e-commerce shoppers. Google invested INR 92 crores ($12.3 million to be exact) in Dunzo along with venture firms Aspada and Blume Ventures last year in December 2017.
But it is clear that all of the above speculations are contingent on how popular and intrusive Google Shopping becomes in India. The interface is clean and simple for now and has products ranging from electronics to appliances and health & beauty to fashion. Google Shopping has introduced a separate section for displaying deals as well. Given its functionalities to become an ecosystem, the product can end up becoming extremely popular in India too as it is in other countries.