Google's redesigned version of Google Shopping brings its online marketplace center stage. But will the new platform—which merges Google Shopping with the company’s existing retail marketplace, Google Express—be able to compete with the likes of Walmart, eBay and Amazon?
Two-thirds of US shoppers typically start their search for new products on Amazon, according to a March 2019 Feedvisor study that polled respondents who have purchased from the marketplace in the past two years. By contrast, two in 10 respondents use a search engine like Google, and just 3% look to another marketplace.
Global online marketplaces like Amazon and Alibaba have risen to prominence and are becoming a competitive threat to retailers and brands around the world. According to a 2018 Salesforce survey, merchants have reason to be concerned. Online buyers are starting their hunt for products on marketplaces with increased frequency.
Amazon's marketplace sales not only have leapfrogged its direct sales business, but marketplace growth is significantly outstripping that of direct operations, which means the gap between marketplace and direct will grow larger in coming years.
eMarketer recently published several Amazon forecasts, including retail ecommerce sales, direct vs. marketplace sales, retail ecommerce sales by product category, Amazon Prime users and households, and Amazon smart speaker users.
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