'Google Really Needs To Be In The Transactional Market' Due To Competition From AAA- Alibaba, Amazon And Apple

Google Inc GOOGL is soon to attach a ‘buy’ button along with search results of products on its mobile site. Colin Sebastian, Robert W. Baird and Company, was on CNBC Tuesday to explain why this moves makes sense for Google.

Benefits

“There are several reasons why it makes sense for Google to test this ‘buy’ button at least,” Sebastian said. “Number one, from a users’ perspective, it may be more convenient to purchase products directly from the search results page as opposed to clicking through the apps or mobile websites.”

He continued, “Secondly, from the retailers’ perspective, they should benefit from more transactions and also there is the issue of competition from Amazon and so Google helps to balance that competition and…for Google there is tremendous benefit from the data, as well as competing more aggressively in e-commerce.”

Competition From AAA

Sebastian was asked what Google is trying to achieve or become by this move in the e-commerce space. He replied, “To some extent retailers are accustomed to advertising. Alibaba for example, this is the model for their marketplace. Secondly…Google is going to share key customer information with retailers. In fact, the transactional pages on Google, on the app will look like they are branded by the retailer to some extent.”

“From Google’s perspective they face this competition from what we call the AAA, Amazon, Alibaba and Apple. So they really need to be in the transactional market. I mean, there are ‘buy’ buttons popping out everywhere online on Facebook on Twitter on Pinterest. So they need to be there,” Sebastian concluded.